Stricter passenger rights rules will boost fares: Jetstar

Jetstar Group chief executive Jayne Hrdlicka has warned that any move to introduce European-style passenger rights rules in Australia could drive up fares and affect the nation’s ability to capitalise on burgeoning tourism from Asia. Passenger rights became a hot topic in the US after the mistreatment of 69-year-old David Dao by United Airlines and Australian consumer group Choice has been campaigning for tougher rules in Australia. Jetstar and Choice traded blows earlier this year over a customer satisfaction survey of international airlines conducted by 10 consumer advocacy groups ranked it last. The Qantas offshoot claimed the survey, which did not include Jetstar rival Tigerair Australia, was flawed. Hrdlicka renewed the attack at an American Chamber of Commerce in Australia lunch in Melbourne. While she said it was clear some airlines in other markets had let their customers down in a big way, she lamented the way the way Australian interest groups had used the incidents to call for more regulations on airlines in Australia, including compensation for flight delays and cancellations. “Our crew and staff find it frustrating when they see interest groups like Choice using data selectively to attack the airline,’’ she said. “Australia is actually a good example of a market where we have the right balance between strong airlines, high service levels, low fares, consumer rights, and tough but realistic regulations.’’ Hrdlicka said Jetstar wasn’t perfect but “when we get it wrong we say so and take steps to fix it’’. She highlighted Jetstar’s economic contribution to the economy and an increased access to travel that saw 37 million people fly on Jetstar in the 2016-17 financial year, with 24 million paying less than $100 a flight. “And we know that the $5 billion dollars in revenue we generate stimulates $50billion in spending across the destinations we travel to,’’ she said. “We all need to work hard to protect that. Europe has shown that onerous regulatory controls can drive up fares and reduce the ability for airlines, particularly low fares airlines, to continue to deliver such enormous benefits in Australia and many other countries.” Jetstar has a branded network of airlines in Australia, New Zealand, Singapore, Japan and Vietnam with a fleet of 131 aircraft.  Hrdlicka believes it is well placed to take advantage of growth which will see the number of passengers in Asia rise to 2.8 billion by 2034 with China overtaking the US as the biggest passenger market by 2029. But she warned Australia needed quality and affordable tourism infrastructure such as hotels and attractions if it wanted to avoid falling behind as attempted to capitalise on the next wave of tourism. She said a second airport in Sydney was a “a real positive” but warned there should not be “gold plated” overdevelopment because it would likely cater for low-cost airlines in its first 10 years. Additional taxes and rising airport fees and charges were also a risk, she said. “Our challenge now is to be thinking forward and building the next generation of low fares customer experiences. We are excited about the opportunity this brings for our customers, our people and our shareholders,’’ she said “I really do believe we’re on the brink of a golden period for tourism in this country. It is ours to make — and we will have to work hard for it. ‘’