Jetstar mulls Melbourne expansion

[Will T]

Jetstar mulls Melbourne expansion
Mathew Murphy
May 19, 2008

MELBOURNE AIRPORT is talking to Jetstar about building a multimillion-dollar terminal for the low-cost carrier to cope with record demand in the domestic market.

The airport is considering expanding Terminal 4, opened in November to accommodate the arrival of Tiger Airways.

However, its bitter rival Jetstar would not need to share the tiger's den, with possible plans including the building of an adjoining terminal for Qantas's budget offshoot.

The airport's freight operations would need to be moved from next to T4 to make way for Jetstar's burgeoning operations.

Recent figures from Melbourne Airport show a record 14 per cent growth in passengers flying domestically. If that rate continues, Jetstar will soon outgrow the home its shares with Qantas at Terminal 1. Jetstar has eight domestic aircraft based at Melbourne Airport operating 200 domestic flights a week, compared with 84 return flights a week from Avalon Airport.

While the plans are still being developed, sources say the total upgrade to Terminal 4 and the freight centre would cost hundreds of millions of dollars.

It forms part of the airport's master plan, the subject of public consultation that will end on July 11. If the upgrade is approved, it would take an estimated five years to complete.

A Melbourne Airport spokesman, Geoffrey Conaghan, said the upgrade would need to be considered alongside the $330 million development of T2, the international terminal.

"We would do the project in an economically responsible way; we would not want to lose our rating from Moody's," he said.

"Once the consultation period is up we will have a clearer indication of the broad expansion plan. I think it is a signal, though, of the sound state of the Victorian economy that we could even talk about these developments while undertaking such a massive project like the international terminal upgrade."

A Jetstar spokesman, Simon Westaway, said the airline was not interested in T4 "as it currently stands" but nor was it looking at moving into "a Taj Mahal".

"We will be interested to see what Melbourne Airport comes up with," he said. "I can confirm with you we have had discussions with Melbourne Airport; we have discussions with a lot of airports about growth.

"From our perspective, though, in terms of any new terminal infrastructure we will consider it subject to reasonable commercial terms and subject to a reasonable customer proposition."

The proposal would also be subject to planning approvals from the Federal Government.

SMH Online
http://business.smh.com.au/jetstar-m...0518-2fle.html

[Marty H]

I had heard around the traps there are plans to knock down the existing Toll Dnata Freight shed and build the terminal there, they are currently building an undercover walkway across the front of that building for Tiger pax.

[Brendan Lawrence]

Any expansion to the number of gates Jetstar can operate from at Melbourne would be fantastic! The need is definitely more urgent than the 5 year estimate put on constructing a brand-new terminal over near T4.

As of a couple of months ago we began using the stand-off bays at the end of the CityFlyer pier (gates 27/28) for some of our morning services because gates 6, 8, 10 and sometimes 12 are already heavily utilised. Infact I arrived into stand-off at gate 27 tonight from Townsville on JQ919.

With more A320s due to be introduced to the fleet this year and based at MEL there's bound to be some extremely tight gate arrangements for JQ and I can see delays happening already from aircraft holding on taxiways for available gates, etc.

As for the suggestion of moving Jetstar's operations around to the vicinity of Tiger at T4; wouldn't that be taking away the great convenience it gives Jetstar and Qantas passengers when connecting/transitioning between the two carriers?

I have no idea of the cost or logistics of what my suggestion would be, but I would have thought extending the CityFlyer pier to accommodate more Qantas services and thus allowing more gates on the main pier to be used by Jetstar would make more sense? Thereby keeping QF and JQ 'under the one roof' so to speak.

Anyway, I guess it's just a matter of watch this space...

[Adrian B]

Why would they expand services into YMML when it might be cheaper to operate out of YMAV? I would guess to say that constructions costs, landing charges and slot availability would be a little more attractive at Avalon??

Or am I missing something here?

[Clarke P]

Originally Posted by Adrian B

Why would they expand services into YMML when it might be cheaper to operate out of YMAV? I would guess to say that constructions costs, landing charges and slot availability would be a little more attractive at Avalon??

Or am I missing something here?

Convenience, probably.

[Justin L]

Originally Posted by Brendan Lawrence

As for the suggestion of moving Jetstar's operations around to the vicinity of Tiger at T4; wouldn't that be taking away the great convenience it gives Jetstar and Qantas passengers when connecting/transitioning between the two carriers?

In Sydney QF (excl. QFLink) and JQ operate out of separate terminals, but regardless don't passengers have to collect luggage and check-in again for any flight involving JQ and an onward journey? In that case, MEL passengers would still have to go the baggage carousels to collect their luggage (which is a long way from the CityFlier pier) and check in again for JQ. The same vice versa. Therefore, a transition to any T4 extension, while it would add some distance, wouldn't change things too much.

I suppose though, with web check-in these days and if you have hand luggage only, the existing arrangement of JQ and QF together in the same terminal has its benefits though for sure.

[Stuart Trevena]

Hi All,

How about this, for an idea:

- Move VB & Rex to the Current QF Terminal.
- Move QF to VB Terminal
- Build 1 new Pier Double Sided (14 Gates 7 per side) for Jetstar next to QF Piers
- Push Tiger to Freight Area.

That way QF and Jetstar are still then side by side and check in is in the same Terminal

Stuart