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Speaker 1: Now, as I told you earlier, the Air New Zealand

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Speaker 1: CEO has taken a crack at Jetstar. He's complained that

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Speaker 1: the country's airports are giving Jetstar discounted landing fees, which

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Speaker 1: then undercuts in New Zealand on the most profitable routes.

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Speaker 1: Steph Tully is the CEO of jet Star. Hi Steph, Hi, Heather,

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Speaker 1: how are you? I'm well? Thank you? Has the Air

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Speaker 1: New Zealand CEO got a point?

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Speaker 2: I think you know, we at Jetstar are very focused

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Speaker 2: on running our own race and the reality is we've

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Speaker 2: been trying really hard to make sure that we've got

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Speaker 2: a great value proposition in the New Zealand market and

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Speaker 2: it's great that more kweis are giving us a go.

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Speaker 2: And I think the reality is airports will always look

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Speaker 2: to have agreements. They're obviously incredibly confidential, and where our

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Speaker 2: lines are growing, they will they will do, you know,

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Speaker 2: agreements to attract growth. And so we've been fighting hard

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Speaker 2: to do that, as we should, because we fight hard

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Speaker 2: on all parts of our business to get it to

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Speaker 2: form the best it should so that we can keep

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Speaker 2: offering wafares for Kiwi.

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Speaker 1: What are the what are the discounts worth.

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

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Speaker 1: Okay, well Billymore Billy Moore from the airports reckons it's

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Speaker 1: about ten to twenty dollars domestically.

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Speaker 2: It totally depends on the agreement, the amount of growth,

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Speaker 2: how much you know flying you've got there, but that

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Speaker 2: they are things that have been a long held part

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Speaker 2: of our industry. So all airlines can have those discussions

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Speaker 2: and get those things. So I would recommend all airlines

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Speaker 2: do that.

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Speaker 1: And so is your advice to hear New Zealand go

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Speaker 1: and ask for a discount yourself if you want one, well.

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Speaker 2: But more just run your business. My view is Jetstar

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Speaker 2: has worked really hard in New Zealand to make sure

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Speaker 2: we're a better proposition than perhaps Kiwis have always given

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Speaker 2: us credit for. And I look at our business and

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Speaker 2: this year, over the last twelve months, we've beaten in

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Speaker 2: New Zealand on time performance, We've beaten them on cancelations.

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Speaker 2: We've canceled less and if you look at the Tasman

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Speaker 2: it's significant gap. So we're forty percent less expensive at least.

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Speaker 2: But our proposition is good, so I know it takes

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Speaker 2: a long time to perhaps, you know, move from experiences

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Speaker 2: of the past. But I don't know how you look

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Speaker 2: at that and don't give Jetstar a go. We're very

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Speaker 2: passionate about Kiwi's having a second choice.

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Speaker 1: Yeah, Now, can you track or do you track the

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Speaker 1: number of new customers coming to you guys?

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Speaker 2: Oh, we have ways we can sort of triangulate it

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Speaker 2: and have a look, and we definitely feel like Kiwis

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Speaker 2: are giving us more of a guy.

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Speaker 1: Is that what's happening, because this is what I'm hearing

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Speaker 1: is a lot more people are starting to give you

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Speaker 1: a go because of the New Zealand's prices. Is that

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Speaker 1: what you're seeing?

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Speaker 2: Yeah, I think we do say it. Obviously we're the

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Speaker 2: smaller player, so we just you know, fighting hard to

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Speaker 2: be valuable and we've had some growth there. We've got

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Speaker 2: another plane over there, We've got you know, almost five

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Speaker 2: hundred passionate stuff over there, working really hard to be

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Speaker 2: a great airline. So I think we're seeing some people

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Speaker 2: giving us a go, and we want that. You know,

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Speaker 2: we'll keep fighting hard to keep our costs low, to

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Speaker 2: be innovative so that we can keep offering low fares,

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Speaker 2: and our fares are significantly lower. So I think I

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Speaker 2: think kis are finding it harder to justify not giving

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Speaker 2: it a go.

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Speaker 1: So I have booked my first Jet staff flight in

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Speaker 1: about welcome twenty years. I'm flying next to third. My

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Speaker 1: boss said, I'm not allowed to tell you because then

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Speaker 1: you're gonna give me special treatment and you can make

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Speaker 1: sure the plane goes on time. Blah blah blah blah whatever.

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Speaker 1: I don't care, That's what I said to him.

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Speaker 2: I was like, you will, you will get our normal

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Speaker 2: jet style service.

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Speaker 1: But what I was then told because then I got

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Speaker 1: very excited Steph, and the I downloaded the app. I

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Speaker 1: didn't even know you had an app. Downloaded the app

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Speaker 1: put my flight into the whole thing, right, you guys,

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Speaker 1: a proper first world airline, it would appear. And then Ben,

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Speaker 1: who sits behind me, he said to me, you know

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Speaker 1: that you can order a Gin and Tonic when you're

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Speaker 1: on their plane. Is this true?

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Speaker 2: Of course? Yeah? Yeah. The whole the whole loaf As

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Speaker 2: model is that we unbundle so we can give you

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Speaker 2: the lowest fare. But then you've got the ability to

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Speaker 2: make choices about how you fly. So you're you're Gin

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Speaker 2: and Tonic. You can order it. You can you know,

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Speaker 2: you can order food if you're hungry. You can order

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Speaker 2: extra baggage.

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Speaker 1: Anytime, Like I don't have to wait for Do I

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Speaker 1: not have to wait for Corey hour for them to

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Speaker 1: give me something nice? I can any flight.

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Speaker 2: I mean you have to you have to obviously give

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Speaker 2: pay a fee for the for the drink. Well that's fine,

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Speaker 2: but I can have that. This is wonderful. Yeah, absolutely,

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Speaker 2: And there's some things that are really unique about the

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Speaker 2: Jets to New Zealand proposition. We've even got points and

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Speaker 2: status on affairs over their Quannus freaking five points, so

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Speaker 2: you know that we realize we have to, you know,

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Speaker 2: do some things a bit differently in that market to

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Speaker 2: try and be a legitimate competitor given the given the

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Speaker 2: strength of the national carrier. But we're doing all we

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Speaker 2: can to be to be a really legitimate choice. And

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Speaker 2: that's if you're on a leisure but also if you're

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Speaker 2: on business as well.

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Speaker 1: Stiff, thank you, I appreciate your time. We'll talk again

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Speaker 1: after my flight on Thursday. Stiff Tally jitstar CEO obviously

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Speaker 1: not going to talk on air, like nobody needs that

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Speaker 1: much of a level of an update. About a plane.

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Speaker 2: Right. For more from Hither Duplessy Allen Drive, listen live

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