The launch of a new airline
THE CHALLENGE
Building on its “Pan-Asian Strategy”, Jetstar in 2011 opted to build on its already strong international market presence in Japan. In keeping with Jetstar’s already well-established JV operations in Singapore and Vietnam, Qantas Group entered into an agreement to form a joint venture business with Japan Airlines (JAL) that would see the creation of Jetstar Japan as a domestic AOC.
Whilst recognizing the ownership structure requirements, it was important for Jetstar to build on its well established commercial and operational model that would offer the same low fares its existing customers had become accustomed to, leveraging a strong cost and operational production discipline. JAL’s strong and historic presence in the market afforded a privilege in credibility with the consumer, but equally required careful engagement given Jetstar Japan would challenge many established Japanese norms.
THE SOLUTION
Working extensively with the local stakeholder group and Jetstar’s assigned project team, a robust governance model was developed and implemented to provide adequate assurance and engagement, in support of both the AOC process and overall JV establishment.
Our team was responsible for the development of the operational assumptions, key postholder identification and recruitment, and the establishment of the operational competencies, capabilities and vendor/supply chain contracting.
THE RESULTS
Jetstar Japan launched in July 2012, initially with three aircraft based at Tokyo’s Narita Airport. Our inputs into the establishment of the model, particularly the maintenance of Jetstar’s operational DNA was reflected in the outcome:
- Operational launch on time and as per plan;
- Short turnaround times, GH practices and inflight cabin model unseen in Japan previously, delivered at point of start-up;
- GH costs significantly below benchmarks;
- Contracted partnership models with “best in class” vendors.