Stephanie Tully: Jetstar CEO shakes off criticism from Air New Zealand

Business as usual for Jetstar, despite Air New Zealand taking a swipe at its airport discounts. 

Air New Zealand head Nikhil Ravishankar claimed airports are unfairly subsidising the Qantas-owned airline - on our most profitable air routes. 

BusinessDesk reports Ravishankar says that includes open-ended discounted landing rights and cost cutting deals. 

Jetstar CEO Stephanie Tully says they're just focused on running their own race. 

"The reality is, we've been trying really hard to make sure that we've got a great value proposition in the New Zealand market - and it's great that more Kiwis are giving us a go."

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:09):
You're listening to a podcast from News Talks B Follow
this and our wide range of podcasts now on iHeartRadio.

Speaker 2 (00:16):
Now.

Speaker 3 (00:17):
As I told you earlier, the Air New Zealand CEO
has taken a crack at Jetstar. He's complained that the
country's airports are given Jetstar discounted landing fees, which then
undercuts in New Zealand on the most profitable routes. Steph
Tully is the CEO of jet Star. Hi Steph, Hi, HEATHERA.

Speaker 2 (00:33):
How are you?

Speaker 3 (00:33):
I'm well? Thank you? Has the Air New Zealand ceo
got a point?

Speaker 2 (00:39):
I think, you know we are. Jetstar are very focused
on running our own race and the reality is we've
been trying really hard to make sure that we've got
a great value proposition in the New Zealand market and
it's great that more keys are giving us a go.
And I think the reality is airports will always look
to have agreements. They're obviously incredibly confidential, and where our

(01:01):
lines are growing, they will they will do, you know,
agreements to attract growth, and so we've been fighting hard
to do that, as we should, because we fight hard
on all parts of our business to get it to
form the best it should so that we can keep
offering wafares for Kiwi.

Speaker 3 (01:16):
What are the discounts worth?

Speaker 2 (01:19):
I can't even share, Heather because it's very commercially well okay, well.

Speaker 3 (01:22):
Billy Moore, Billy Moore from the airports reckons it's about
ten to twenty dollars domestically.

Speaker 2 (01:28):
It totally depends on the agreement, the amount of growth,
how much you know flying you've got there. But they
are things that have been a long held part of
our industry. So all airlines can have those discussions and
get those things. So I would recommend all airlines do that.

Speaker 3 (01:44):
And so is your advice to New Zealand. Go and
ask for a discount yourself if you want one, well, but.

Speaker 2 (01:50):
More just run your business. My view is Jetstars worked
really hard in New Zealand to make sure we're a
better proposition than perhaps Kiwis have always given us credit for.
And I look at our business and this year, over
the last twelve months, we've beaten in New Zealand on
time performance, We've beaten them on cancelations, We've canceled less
and if you look at the Tasman it's significant gap.

(02:13):
So we're forty percent less expensive at least. But our
proposition is good. So I know it takes a long
time to perhaps you know, move from experiences of the past,
But I don't know how you look at that and
don't give Jetstar a go. We're very passionate about Kiwi's
having a second choice.

Speaker 3 (02:28):
Yeah, Now, can you track or do you track the
number of new customers coming to you guys?

Speaker 2 (02:35):
Oh, we have ways we can sort of triangulate it
and have a look, and we definitely feel like Kiwis
are giving us more of a goal.

Speaker 3 (02:41):
Is that what's because this is what I'm hearing is
a lot more people are starting to give you a
go because of the New Zealand's prices. Is that what
you're seeing?

Speaker 2 (02:48):
Yeah, I think we do see it. Obviously, we're the
smaller player, so we just you know, fighting hard to
be valuable and we've had some growth there. We've got
another plane over there, We've got you know, almost five
hundred passionate stuff over there, working really hard to be
a great airline. So I think we're seeing some people
giving us a go, and we want that. You know,
we'll keep fighting hard to keep our costs low, to

(03:12):
be innovative. So that we can keep offering low fares,
and our fares are significantly lower. So I think Kiwis
are fighting it harder to justify not giving it a go.

Speaker 3 (03:21):
So I have booked my first jet staff light in
about welcome. We're twenty years I'm flying next to third.
My boss said, I'm not allowed to tell you because
then you're going to give me special treatment and you
can make sure the plane goes on time. Blah blah
blah blah whatever. I don't again, that's what I said
to him.

Speaker 2 (03:39):
I was like, you will, you will get our normal
jet style service.

Speaker 3 (03:43):
But what I was then told because then I got
very excited Steph. And then I downloaded the app. I
didn't even know you had an app, downloaded the app,
put my flight and did the whole thing right. He
goes a proper first World airline, it would appear. And
then Ben, who sits behind me, said to me, you
know that you can order a Gin and Tonic when
you're on their plane. Is this true?

Speaker 2 (04:00):
Of course? Yeah? Yeah. The whole the whole low fairs
model is that we unbundle so we can give you
the lowest fair, but then you've got the ability to
make choices about how you fly. So you're your Gin
and Tonic, you can order it. You can you know,
you can order food if you're hungry. You can order
extra baggage anytime.

Speaker 3 (04:17):
Like I don't have to wait for Do I not
have to wait for Cory hour for them to give
me something nice? I can any flight.

Speaker 2 (04:23):
You have to you have to obviously give pay a
fee for the for the drink.

Speaker 3 (04:28):
Well that's fine, but I can have it. This is wonderful.

Speaker 2 (04:31):
Yeah, absolutely, And there's some things that are really unique
about the Jets do New Zealand proposition. We've even got
points and status on affares over their Quanus freaking flypoints,
So you know that we realize we have to, you know,
do some things a bit differently in that market to
try and be a legitimate competitor given the given the
strength of the national carrier. But we're doing all we
can to be to be a really legitimate choice. And

(04:53):
that's if you're on a leisure but also if you're
on business as well.

Speaker 3 (04:56):
Stiff, thank you, I appreciate your time. We'll talk again
after my flight on Thursday. Stiff Tally jitstar CEO. Obviously
I'm not going to talk on air, like nobody needs
that much of a level of an update about a
plane

Speaker 1 (05:05):
Right for more from news talks, there'd be listen live
on air or online and keep our shows with you
wherever you go with our podcasts on iHeartRadio