Latest / Best of Business / Stephanie Tully: Jetstar CEO shakes off criticism from Air New Zealand

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Stephanie Tully: Jetstar CEO shakes off criticism from Air New Zealand · Best of Business

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  Speaker 2: Now.
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  Speaker 3: As I told you earlier, the Air New Zealand CEO
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  Speaker 3: has taken a crack at Jetstar. He's complained that the
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  Speaker 3: country's airports are given Jetstar discounted landing fees, which then
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  Speaker 3: undercuts in New Zealand on the most profitable routes. Steph
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  Speaker 3: Tully is the CEO of jet Star. Hi Steph, Hi, HEATHERA.
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  Speaker 2: How are you?
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  Speaker 3: I'm well? Thank you? Has the Air New Zealand ceo
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  Speaker 3: got a point?
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  Speaker 2: I think, you know we are. Jetstar are very focused
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  Speaker 2: on running our own race and the reality is we've
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  Speaker 2: been trying really hard to make sure that we've got
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  Speaker 2: a great value proposition in the New Zealand market and
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  Speaker 2: it's great that more keys are giving us a go.
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  Speaker 2: And I think the reality is airports will always look
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  Speaker 2: to have agreements. They're obviously incredibly confidential, and where our
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  Speaker 2: lines are growing, they will they will do, you know,
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  Speaker 2: agreements to attract growth, and so we've been fighting hard
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  Speaker 2: to do that, as we should, because we fight hard
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  Speaker 2: on all parts of our business to get it to
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  Speaker 2: form the best it should so that we can keep
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  Speaker 2: offering wafares for Kiwi.
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  Speaker 3: What are the discounts worth?
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  Speaker 2: I can't even share, Heather because it's very commercially well okay, well.
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  Speaker 3: Billy Moore, Billy Moore from the airports reckons it's about
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  Speaker 3: ten to twenty dollars domestically.
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  Speaker 2: It totally depends on the agreement, the amount of growth,
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  Speaker 2: how much you know flying you've got there. But they
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  Speaker 2: are things that have been a long held part of
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  Speaker 2: our industry. So all airlines can have those discussions and
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  Speaker 2: get those things. So I would recommend all airlines do that.
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  Speaker 3: And so is your advice to New Zealand. Go and
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  Speaker 3: ask for a discount yourself if you want one, well, but.
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  Speaker 2: More just run your business. My view is Jetstars worked
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  Speaker 2: really hard in New Zealand to make sure we're a
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  Speaker 2: better proposition than perhaps Kiwis have always given us credit for.
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  Speaker 2: And I look at our business and this year, over
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  Speaker 2: the last twelve months, we've beaten in New Zealand on
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  Speaker 2: time performance, We've beaten them on cancelations, We've canceled less
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  Speaker 2: and if you look at the Tasman it's significant gap.
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  Speaker 2: So we're forty percent less expensive at least. But our
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  Speaker 2: proposition is good. So I know it takes a long
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  Speaker 2: time to perhaps you know, move from experiences of the past,
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  Speaker 2: But I don't know how you look at that and
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  Speaker 2: don't give Jetstar a go. We're very passionate about Kiwi's
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  Speaker 2: having a second choice.
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  Speaker 3: Yeah, Now, can you track or do you track the
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  Speaker 3: number of new customers coming to you guys?
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  Speaker 2: Oh, we have ways we can sort of triangulate it
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  Speaker 2: and have a look, and we definitely feel like Kiwis
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  Speaker 2: are giving us more of a goal.
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  Speaker 3: Is that what's because this is what I'm hearing is
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  Speaker 3: a lot more people are starting to give you a
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  Speaker 3: go because of the New Zealand's prices. Is that what
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  Speaker 3: you're seeing?
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  Speaker 2: Yeah, I think we do see it. Obviously, we're the
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  Speaker 2: smaller player, so we just you know, fighting hard to
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  Speaker 2: be valuable and we've had some growth there. We've got
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  Speaker 2: another plane over there, We've got you know, almost five
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  Speaker 2: hundred passionate stuff over there, working really hard to be
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  Speaker 2: a great airline. So I think we're seeing some people
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  Speaker 2: giving us a go, and we want that. You know,
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  Speaker 2: we'll keep fighting hard to keep our costs low, to
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  Speaker 2: be innovative. So that we can keep offering low fares,
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  Speaker 2: and our fares are significantly lower. So I think Kiwis
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  Speaker 2: are fighting it harder to justify not giving it a go.
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  Speaker 3: So I have booked my first jet staff light in
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  Speaker 3: about welcome. We're twenty years I'm flying next to third.
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  Speaker 3: My boss said, I'm not allowed to tell you because
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  Speaker 3: then you're going to give me special treatment and you
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  Speaker 3: can make sure the plane goes on time. Blah blah
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  Speaker 3: blah blah whatever. I don't again, that's what I said
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  Speaker 3: to him.
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  Speaker 2: I was like, you will, you will get our normal
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  Speaker 2: jet style service.
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  Speaker 3: But what I was then told because then I got
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  Speaker 3: very excited Steph. And then I downloaded the app. I
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  Speaker 3: didn't even know you had an app, downloaded the app,
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  Speaker 3: put my flight and did the whole thing right. He
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  Speaker 3: goes a proper first World airline, it would appear. And
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  Speaker 3: then Ben, who sits behind me, said to me, you
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  Speaker 3: know that you can order a Gin and Tonic when
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  Speaker 3: you're on their plane. Is this true?
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  Speaker 2: Of course? Yeah? Yeah. The whole the whole low fairs
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  Speaker 2: model is that we unbundle so we can give you
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  Speaker 2: the lowest fair, but then you've got the ability to
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  Speaker 2: make choices about how you fly. So you're your Gin
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  Speaker 2: and Tonic, you can order it. You can you know,
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  Speaker 2: you can order food if you're hungry. You can order
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  Speaker 2: extra baggage anytime.
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  Speaker 3: Like I don't have to wait for Do I not
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  Speaker 3: have to wait for Cory hour for them to give
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  Speaker 3: me something nice? I can any flight.
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  Speaker 2: You have to you have to obviously give pay a
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  Speaker 2: fee for the for the drink.
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  Speaker 3: Well that's fine, but I can have it. This is wonderful.
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  Speaker 2: Yeah, absolutely, And there's some things that are really unique
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  Speaker 2: about the Jets do New Zealand proposition. We've even got
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  Speaker 2: points and status on affares over their Quanus freaking flypoints,
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  Speaker 2: So you know that we realize we have to, you know,
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  Speaker 2: do some things a bit differently in that market to
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  Speaker 2: try and be a legitimate competitor given the given the
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  Speaker 2: strength of the national carrier. But we're doing all we
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  Speaker 2: can to be to be a really legitimate choice. And
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  Speaker 2: that's if you're on a leisure but also if you're
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  Speaker 2: on business as well.
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  Speaker 3: Stiff, thank you, I appreciate your time. We'll talk again
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  Speaker 3: after my flight on Thursday. Stiff Tally jitstar CEO. Obviously
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  Speaker 3: I'm not going to talk on air, like nobody needs
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  Speaker 3: that much of a level of an update about a
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  Speaker 3: plane
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