Australian and Chinese Airlines Team Up For A New Budget Airline

April 13, 2012

Unlocking Word Meanings
Read the following words/expressions found in today’s article.

1. stake (n.) [steyk] – a financial share, interest or involvement in a business
Example: ABC Company is selling its stake in one of the major food processing companies in the country. 

2. aviation (n.) [ey-vee-ey-shuhn, av-ee-] – the design, manufacture, use, or operation of aircraft
Example: Competition of airline companies strengthens the aviation industry.

3. budget (adj.) [buhj-it] – cheap and priced at a reasonable value
Example: Budget trips are suitable for people who do not want to spend too much.

4. route (n.) [root, rout]  a path taken to travel from one place to another
Example: The company driver takes the same route from office to the bank.

5. fleet (n.) [fleet] -  a large group of vehicle working or managed as a unit, usually by a commercial enterprise
Example: The city's fleet of government cars runs on alternative fuels.  

Read the text below.

In 2013, Australian carrier Qantas and China Eastern Airlines will launch Jetstar Hong Kong, a new low-cost Asian airline.

The Qantas Group had previous talks with Malaysian Airlines over a partnership Asian airline, but the deal did not push through.

Now, Qantas is looking forward to working closely with partner China Eastern Airlines. The two major airline companies will each have an equal stake on the new budget airline.

Jetstar Hong Kong will be an expansion of Qantas’s budget brand, Jetstar, which already flies domestic Australian and Asian routes.  Jetstar plans to further take advantage of the fast-growing aviation market in Asia by flying short distance routes in China, Japan, South Korea and Southeast Asia.

According to Jetstar’s Chief Executive Bruce Buchanan, the budget airline especially aims to enter Greater China’s travel market, which only has a few low-cost carriers. The Greater China region produces 300 million passengers a year, the number of which is expected to increase to 450 million by 2015 as Chinese middle-class spending rises.

Buchanan says Jetstar Hong Kong’s fares will be half the price of other full-service airlines and will increase travel demand, because travelers can go on “more trips, more often”.

The announcement of the new Hong Kong-based airline has good timing. John Lee, chief executive of the Tourism and Transport Forum based in Australia, said that the number of Chinese people travelling internationally is growing fast.

Jetstar Hong Kong will first open with a fleet of three Airbus A320s, but the airline plans to increase its airplanes to 18 by 2015.

Viewpoint Discussion
Enjoy a discussion with your tutor.

Discussion A

·         Would you say Qantas’s decision to start budget airlines is a good one? Why or why not?
·         What are the possible disadvantages of taking a budget airline?

Discussion B

·         What are the things you consider in choosing an airline? Please explain further
·         Do you think more people would be encouraged to travel with affordable fares? Why or why not?


April 13, 2012