Aussie low-cost carrier to set up shop in RP

MANILA, Philippines - Jetstar Airways Pty. Ltd., a low-cost carrier headquartered in Melbourne, Australia, is setting up shop in the Philippines as it aims to grab a larger share of Asia’s red hot budget airline market.

Jetstar recently secured the Securities and Exchange Commission’s nod to establish a branch office in the country with an initial authorized capital stock of AUS500,000 (equivalent to P19.955 million).

Based on documents filed with the SEC, Jetstar shall “provide international air passenger, cargo, mail and luggage transportation to and from the Philippines.”

Jetstar was founded in 2004 by Qantas Airways in response to the threat posted by low-cost airlines which have changed the face of Asian skies. No-frills airline have fared better during last year’s global recession than their full-service, premium competitors thanks to pocket-friendly airfares.

Things have been rosy that Asia’s budget airlines will take delivery of around 500 aircraft over the next five years to offer new routes and more flights, adding up 15 percent to total capacity. This could also be in preparation for further market liberalization of the international air transport, which will come into full effect by 2015 and is seen to heat up the region’s budget airlines.

The agreement will allow regional air carriers to make unlimited flights to all 10 Association of Southeast Asian Nations (ASEAN) members and promises to boost intra-regional tourism, trade and investment among member countries – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Oct. 4, 2006, Jetstar became the first Australian airline to allow customers to select their seat upon booking.