5th December 2013, 01:21 PM
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Jetstar Avalon operations facing the chop
Bit of a worry. Four flights a day why bother.
http://www.geelongadvertiser.com.au/...-1226775419456
Quote:
PREMIER Denis Napthine has urged Avalon Airport to contribute money to keep budget airline Jetstar.
The Geelong Advertiser revealed this morning that the discount carrier - Avalon's only passenger carrier - was reviewing its tenure at the airport, where it has been losing millions of dollars.
In Geelong for other announcements this morning,Dr Napthine said it was "disturbing news."
"We have been working in recent days very strongly on this, and have put a substantial offer on the table," he said.
"We have called on the owners and managers of Avalon Airport to partner with us in a tri-partnership with Jetstar to put this offer on the table and keep services operating out of Avalon."
The Premier said his Government had offered a subsidy worth millions of dollars to try and keep Jetstar at Avalon, but urged the airport to sweeten the deal.
Greater Geelong mayor Darryn Lyons echoed that sentiment this morning.
Jetstar has admitted it is losing millions of dollars each year on its five daily Avalon flights - four of which connest to Sydney, one to Brisbane.
Up to 230 jobs will go if the airline departs Avalon, blasting an $87 million hole in the Greater Geelong economy.
Parent company Qantas has today also announced plans to cut staff numbers and dramatically throttle back its budget.
"It's fair to say our services to and from Avalon have been underperforming for quite some time,'' a Jetstar spokesman said yesterday.
"In order to fill seats on the aircraft, we have been heavily discounting fares. This is not a sustainable position for us, or any airline, and we have been unable to find a pathway to profitability in the current market environment.
"We are continuing to monitor the performance of our Avalon routes and are yet to make a decision on the future of these services.''
Community leaders will meet at City Hall on Friday to address fears the airline could leave town.
Jetstar is losing millions of dollars a year at the Avalon Airport. Source: News Limited
Avalon chief Justin Giddings said he had suggested Jetstar review its discounting policy and whether it could save money by condensing its five daily flights, which are presently spread across 16 hours.
"We still believe if Jetstar wants to be a true Australian airline they should continue to service Avalon because it is the gateway to the Great Ocean Road,'' he said.
A spokesman for Premier Denis Napthine - who will visit Geelong today - said the State Government was working to secure the airline's services at the airport, revealing subsidies were offered.
"Over the last few weeks, discussions have intensified and have included potential financial incentives from the State Government to enable Jetstar to continue operating flights from the airport,'' the spokesman said.
"The Victorian Government has been prepared to discuss significant support provided there is a commensurate commitment by private sector parties. As of today, with discussions ongoing, we urge both the airline and the airport to get behind the Geelong region.''
About 700 passengers visit Avalon each day for Jetstar's five daily flights at Avalon - four of which connect to Sydney, one to Brisbane.
Less than a month ago its parent company, Qantas, announced it would axe 300 jobs at Avalon at the airport by closing a maintenance plant.
The airline employs 70 workers at Avalon, some of whom also work at Tullamarine, while there are more than 160 jobs at the airport directly reliant on its flights.
However, the potential ramifications of a shutdown are far more serious for a region which has much of its economic future attached to the airports success.
Airport boss Justin Giddings urged the airline to stay. Source: News Limited
Geelong's federal MPs Richard Marles and Sarah Henderson, new mayor Darryn Lyons and Geelong Trades Hall Council secretary Tim Gooden all joined Mr Giddings yesterday in urging the airline to stay.
However, Mr Gooden said the State Government should not be intimidated.
He said taxpayers had pumped millions of dollars into the airport and if Jetstar did not want to operate from there another carrier would emerge.
"A lot of taxpayer's money has been spent building up the airport, and there are now a lot of workers reliant on that infrastructure,'' he said.
"I hate to think of all the lives that are now being toyed with by these people in board rooms.''
Ms Henderson said she and Cr Lyons would convene a meeting of Geelong leaders at City Hall on Friday morning.
"I am extremely concerned about the uncertainty surrounding Jetstar's operations at Avalon Airport," she said.
"While I appreciate that Qantas is facing very major pressures, last year the Jetstar group recorded a $138 million profit.
"The operation of a domestic airline at Avalon is so important to our region and to our future.
Frankly, any decision by Jetstar to pull out of Avalon would be a disaster. I don't think the people of Geelong would easily forgive Qantas for this decision. As a community, we are still coming to grips with 299 job losses at Qantas' heavy maintenance base at Avalon."
Mr Marles said news of the review was a "troubling development".
"It is now incumbent on the Abbott and Napthine governments to do everything they can to see that Jetstar remains at Avalon," he said.
Richard Marles said Jetstar needed to recognise years of loyalty. Source: News Limited
"It is also incumbent upon Jetstar that, in doing its review, it recognise the many years of loyalty that has been shown to them by Geelong. Jetstar is very important for Avalon, and Avalon is very important for Geelong."
Cr Lyons said he had become aware of the Jetstar review in recent days.
"It is of concern but I want the people of Geelong to know that we've been working extremely hard to try and convince Jetsstar to stay," he said.
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