By NOEL MURPHY
JETSTAR is under pressure to improve its services at Avalon Airport as a new campaign gets under way for more taxpayer-funded subsidies to keep the low-cost carrier at Geelong.
G21’s Elaine Carbines said Jetstar was using the wrong business model at Avalon, focussing only on cut-rate discount flights instead of what the region wanted.
“It’s nonsense for Jetstar to say people don’t utilise it, I think it’s a furphy. Jetstar says that planes aren’t full but that’s not what Avalon tells us,” said Ms Carbines, the chief of the region’s councils alliance body.
“I’ve met with (Jetstar CEO) David Hall and impressed on him that Jetstar’s service is not good enough. Flying to Sydney only is not good enough when our people in the region want to fly all over Australia.
“There are only five flights a day – that’s just not appropriate. When it offered flights all over Australia it was well supported.
“David Hall says the only business model for Avalon is with heavily discounted flights out of Avalon but we think people in the region would pay normal flight prices.
“We disagree with their business model, with cutting services to the bone. It’s nonsense to say people are deliberately driving past when some flights are very inconvenient and only go to Sydney.”
“We think they have the wrong business model and don’t offer a full fleet of services to multiple destinations that any other carrier would offer.
“We’d be prepared to pay for services and I think people would be happy to pay prices commensurate with Tullamarine.”
Geelong Mayor Darryn Lyons said he received a sympathetic hearing when he raised the Jetstar problem in talks with Prime Minister Tony Abbott in Canberra yesterday.
“The PM needs to know Avalon is the key to Geelong’s future. I think he concurred with what I was saying about the business model. You really have to look at it – it’s not rocket science.
“I agree with Elaine about the business model. They say if prices go up people won’t fly from Avalon but I disagree – I’ve got plenty of people telling me they struggle with Jetstar’s scheduling.
“Jetstar needs to treat the Geelong community with a lot more respect.”
Cr Lyons said Geelong’s tourism – up 23 per cent by the latest figures without including the waterfront Christmas tree visitors – showed more people coming into the region, including with Jetstar through Avalon.
“The fact is their service is full but they’re making a big deal,” he said.
Avalon Airport’s Peter Dorling told the Independent the airport was desperate for Jetstar to stay.
“We want to keep them and we’re working with them and the State Government, which has been good, to keep them here,” he said.
Jetstar issued a statement after the Independent went to press, saying:
“Jetstar has operated continuously from Avalon Airport for 11 years.
“No other airline operates from Avalon.
“Jetstar has made a loss on our services from Avalon for the past five years.
“Jetstar contributed $2.75 million to an $11 million funding package with the Victorian Government and Linfox to keep services going.
“Jetstar lost more money (beyond the $2.75 million) over this period.
“Our loads have slightly improved on this time last year however we have to heavily discount to get these loads.
“Jetstar operates five flights a day to Sydney – spread at times from early morning to the evening.
“Sydney offers the biggest market of inbound tourism to Geelong and surround regions.
“Jetstar has operated to a range of interstate destinations from Avalon – Perth, Adelaide, Brisbane etc. These services lost even more money that our Sydney services.
“Less than 1 per cent of our flights were cancelled over the past year.
“Jetstar would like to continue operating after the current funding ends at the end of April, as we know how important these services are to the community, however we cannot continue to sustain these losses.
“The Government and Airport are aware of the economics of operating from Avalon and we are in discussions about finding a sustainable commercial solution.
“We have a lot of satisfied customers who regularly use these services and our team at Avalon do a fantastic job servicing our customers.”
