Jetstar, the low-cost airline owned by Australia’s Qantas, has been forced to postpone the start of services to Europe following delays in the delivery of Boeing’s 787 Dreamliner.
Alan Joyce, Jetstar’s chief executive, said the problems at Boeing would have a knock-on effect to the start of its new services of at least a few months.
Jetstar had initially hoped to begin services to Europe in early 2009. However, it now expects that timetable to slip until later next year or early 2010, depending on confirmation of aircraft delivery from Boeing.
Qantas last week flagged delivery delays, which includes 15 Boeing 787s ordered by Jetstar. The 787 is Boeing’s biggest investment in commercial aircraft for more than a decade.
Qantas has previously said that delays to deliveries from both Boeing and Airbus were causing capacity shortages. However, the shortages have also allowed the airline to increase load factors, helping to push profits to record highs.
Mr Joyce, speaking on the sidelines of a conference in Singapore, said Jetstar was in talks with Boeing about compensation.
Jetstar’s warning comes as Virgin Blue prepares to expand its services.
The airline, part owned by Virgin’s Richard Branson, on Tuesday said it was optimistic that talks between Australia and the US next month will pave the way for it to begin flights between Australia’s east coast and the US west coast under its new V Australia brand.
Virgin Blue won approval for the flights from Australia’s aviation authority in July although it still needs approval from the US authorities.
The expansion of services comes as foreign groups are attempting to break into Australia’s growing domestic and international aviation markets.
International travel in and out of Australia rose 4.9 per cent to 22.13m passengers in the first half of 2007.
Tiger Airways, the Singapore-based budget airline, began initial services within the Australian market at the end of last year, putting an end to a long standing duopoly.
The budget airline market in Australia is also becoming more competitive.
Indonesia’s Lion Mentari Airlines has proposed a joint venture with Australia’s SkyAirWorld, the charter airline operating between Brisbane and Honiara in the Solomon Islands.
The Indonesian carrier also plans to purchase additional aircraft from Boeing.
