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."

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Episode Transcript

Speaker 1 (00:00):
Now, 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 giving 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, Heather,
how are you? I'm well? Thank you? Has the Air
New Zealand CEO got a point?

Speaker 2 (00:22):
I think you know, we at 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 kweis 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

(00:44):
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 1 (00:59):
What are the what are the discounts worth.

Speaker 2 (01:02):
I can't even share Heather because it's very commercially well.

Speaker 1 (01:05):
Okay, well Billymore Billy Moore from the airports reckons it's
about ten to twenty dollars domestically.

Speaker 2 (01:11):
It totally depends on the agreement, the amount of growth,
how much you know flying you've got there, but that
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 1 (01:27):
And so is your advice to hear New Zealand go
and ask for a discount yourself if you want one, well.

Speaker 2 (01:33):
But more just run your business. My view is Jetstar
has 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

(01:55):
it's significant gap. 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 1 (02:12):
Yeah, Now, can you track or do you track the
number of new customers coming to you guys?

Speaker 2 (02:18):
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 guy.

Speaker 1 (02:24):
Is that what's happening, 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 (02:32):
Yeah, I think we do say 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

(02:55):
be innovative so that we can keep offering low fares,
and our fares are significantly lower. So I think I
think kis are finding it harder to justify not giving
it a go.

Speaker 1 (03:04):
So I have booked my first Jet staff flight in
about welcome twenty years. I'm flying next to third. My
boss said, I'm not allowed to tell you because then
you're gonna give me special treatment and you can make
sure the plane goes on time. Blah blah blah blah whatever.
I don't care, That's what I said to him.

Speaker 2 (03:22):
I was like, you will, you will get our normal
jet style service.

Speaker 1 (03:26):
But what I was then told because then I got
very excited Steph, and the I downloaded the app. I
didn't even know you had an app. Downloaded the app
put my flight into the whole thing, right, you guys,
a proper first world airline, it would appear. And then Ben,
who sits behind me, he said to me, you know
that you can order a Gin and Tonic when you're
on their plane. Is this true?

Speaker 2 (03:43):
Of course? Yeah? Yeah. The whole the whole loaf As
model is that we unbundle so we can give you
the lowest fare. But then you've got the ability to
make choices about how you fly. So you're you're Gin
and Tonic. You can order it. You can you know,
you can order food if you're hungry. You can order
extra baggage.

Speaker 1 (04:00):
Anytime, Like I don't have to wait for Do I
not have to wait for Corey hour for them to
give me something nice? I can any flight.

Speaker 2 (04:06):
I mean you have to you have to obviously give
pay a fee for the for the drink. Well that's fine,
but I can have that. This is wonderful. Yeah, absolutely,
And there's some things that are really unique about the
Jets to New Zealand proposition. We've even got points and
status on affairs over their Quannus freaking five points, so
you know that we realize we have to, you know,
do some things a bit differently in that market to

(04:27):
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
that's if you're on a leisure but also if you're
on business as well.

Speaker 1 (04:40):
Stiff, thank you, I appreciate your time. We'll talk again
after my flight on Thursday. Stiff Tally jitstar CEO obviously
not going to talk on air, like nobody needs that
much of a level of an update. About a plane.

Speaker 2 (04:49):
Right. For more from Hither Duplessy Allen Drive, listen live
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