VH registered Jetstar tails to be seen less in Darwin, more in Adelaide: Jetstar photo

The Jetstar closure of its Darwin base had been widely tipped before Qantas went public with its campaign against Virgin and a profit downgrade that cost its S&P investment grade rating.

On the known facts the correct way to describe the Jetstar changes would be a reallocation of resources, meaning employees and aircraft, with Adelaide the main beneficiary. It is not about the actions that owner Qantas may decide to take to raise money or lower costs to shore up its balance sheet.

However the dropping of Jetstar international flights to SE Asia from Darwin or their transfer to Singapore based Jetstar Asia is negative news for inbound tourism to the Top End in particular, despite the merits of  increased Jetstar capacity between the NT capital and Cairns.

In the wider picture Jetstar’s main challenge appears to be the amount of Qantas capital wasted on underperforming franchises in Asia, and the continued blocking or postponing of its planned Jetstar Hong Kong operation.

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