Fed: Jetstar flags cheaper flights for carry-on customers

AAP General News (Australia)
02-12-2008
Fed: Jetstar flags cheaper flights for carry-on customers

MELBOURNE, Feb 12 AAP - Budget airline Jetstar has launched discounted airfares for
customers who choose to travel only with carry-on baggage on its domestic and international
services.

The JetSaver Light fare cuts $10 off the price of domestic one-way tickets and $20
off one-way international travel for customers travelling with carry-on baggage up to
10kg.

"This is the most competitive market of probably any aviation market in the world,"

Jetstar chief executive Alan Joyce told journalists at an official launch in Melbourne.

"We have got Tiger and Virgin operating on nearly every Jetstar route ... (and) we
see ourselves having to raise our game to meet that challenge."

Jetstar is supporting the launch with a web fare offer of 5,000 domestic fares at one cent each.

The offer is not available to Jetstar's international services to Japan or the the United States.

Meanwhile, Mr Joyce noted increased oil prices had put pressure on the airline's fuel
costs and the company was working to offset the rise.

"Our fuel has gone from 17 per cent to 32 per cent of our cost base, (but) our other
costs have reduced to compensate for that, and that's why we continue to make money at
these low airfares," Mr Joyce said.

Jetstar was forced to increase the fuel surcharge on its international flights last
month as a result of record crude oil prices.

"Our major focus over the last four years has been working on other cost efficiencies
to offset fuel," Mr Joyce said.

AAP bls/pe/cjh/bwl

KEYWORD: JETSTAR

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