more competition coming up, page-3

malaysia coming. jetstar ko. then there's this:
Jakarta slams door on Jetstar
By Scott Rochfort and wires
March 26, 2005

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Qantas's struggling Jetstar Asia operation suffered another body blow this week after the Indonesian Government said it would block foreign low-cost airlines from flying on key routes into the country.

Just one week after Jetstar Asia said it would have to lease out half of its fleet of eight Airbus A320s after failing to gain access into several key markets, Indonesia said it would permanently block low-cost carriers from flying into Jakarta, Medan, Surabaya and Bali.

"This [decision] to limit foreign low-cost carriers for potential route flights had to be taken because the national carriers are unable to compete with them," Indonesia's Transportation Minister, Hatta Rajasa, told the state-run Antara news agency.

The move comes just one week after the Indonesian Government sacked the entire board of its national carrier, Garuda.

Aside from protecting Garuda, the move is seen as retaliation against the Singapore Government for, in January, barring the 49 per cent AirAsia-owned Indonesia carrier AWAIR from flying into Changi.

"If Singapore can impose such an extra-tight policy why can't Indonesia do the same?" Mr Hatta asked.

Singapore Airlines' 49 per cent-owned Tiger Airways is also set to suffer from the decision.

But Jetstar Asia's problems do not only lie in being barred access into Indonesia and China.

After just two months the airline canned its services to Pattaya, Thailand, and it is unlikely its new double daily service to Bangkok, which started on Wednesday, is profitable.

The airline gave away the first 1000 seats on the Bangkok services for free and has introductory one-way fares of $S28 ($22).

Jetstar Asia chief executive Ken Ryan was unavailable for comment. Last week he said the airline was "currently carrying excellent loads and is delighted with the forward bookings on all routes".

Qantas has already started highlighting Jetstar Asia's problems in gaining access into key Asian market in its campaign to persuade the Australian Government not to allow Singapore Airlines on its lucrative Sydney-Los Angeles route.

This is despite Jetstar Asia's problems in gaining access not lying with the Singapore Government but with other Asian countries.

"It just highlights it's not a level playing field and Australia really does have one of the most liberal aviation environments in the world," Qantas's head of public affairs, Michael Sharp, said.

He said Qantas had to compete with about 40 international airlines that fly into Australia.

In comparison, about 80 international airlines fly into Singapore.

Meanwhile, Qantas's domestic low-cost operation, Jetstar, has ruled out picking up its Singapore sister airline's surplus A320s.

Despite speculation in the past the two airlines could co-operate on switching aircraft as needed, Jetstar chief executive Alan Joyce said "we certainly think we have enough".

Jetstar's fleet of A320s grew to eight last week, after it took delivery of two aircraft on loan to Jetstar Asia