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Home / Business / Companies / Airlines

Dirty tricks claim by Jetstar chief

By Rebecca Lewis
Herald on Sunday·
4 Jul, 2009 04:00 PM5 mins to read

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Jetstar chief executive Bruce Buchanan has accused Air New Zealand of attempting to "sabotage" his airline during its troubled launch in the domestic market.

The Qantas subsidiary has been beset by problems since introducing a New Zealand schedule and expanded trans-tasman service three weeks ago.

Domestic travellers galore have complained about late and cancelled flights, and of being turned away for failing to check in 30 minutes before takeoff.

Claims of rude and unhelpful staff have flooded internet messageboards, and some have accused the airline of overbooking flights, leaving passengers stranded.

But Buchanan said many rumours about Jetstar, including those concerning poor pilots and old, unserviced planes, had been circulated by Air NZ.

And he accused the national carrier of being worried about losing its monopoly on the domestic market.

"We've experienced some tough competition before but we've never experienced someone trying to sabotage our business, or specifically go after us to try and discredit us.

"There is zero overbooking in the New Zealand market. It's a complete fallacy that our competitors are spreading throughout the media.

"It wasn't something we were prepared for and we are surprised at the dirty tricks they are playing. They have a dedicated team of individuals running a campaign to try and ruin our launch."

The claims were rejected by Air NZ's shorthaul airline group general manager Bruce Parton, who questioned whether Buchanan wanted New Zealanders "to take his airline seriously".

"If Fred Dagg was in his prime, I am sure he would be revelling in all the material Mr Buchanan and Jetstar are dishing up," Parton said.

"Surely, Mr Buchanan doesn't expect Kiwis to believe that we are responsible for his Aussie airline's woes? We didn't dream up his draconian check-in rules, his schedule that often cannot be met, his endless schedule changes and his decision to operate ill-equipped aircraft to Queenstown that cannot achieve the same punctuality as Air NZ's fleet."

Parton said the claims were the "actions of a desperate man".

"Simply, Jetstar has itself to blame for its own bad PR and the 'one star airline' tag some have given it. Surely, Mr Buchanan learned the same childhood lesson we all did - don't blame others for your mistakes."

But Buchanan, at 36 a surprisingly young chief executive, said he shoulders ultimate responsibility for Jetstar's problems.

For his first New Zealand interview since the airline's expansion, he sits in an armchair at Sydney's Qantas offices and admits the company has failed to meet the expectations of Kiwi travellers.

And the boss of nine months said he was punishing himself for not launching the way he expected into the "demanding" Kiwi market.

With more than $250 million invested in the expansion - including introducing a fleet of new A320 aircraft on 42 trans-tasman and 84 domestic return flights a week - it's easy to understand his concerns.

"We've definitely had our share of woes and there are some customers who haven't had the best Jetstar experience, and for that we are apologetic," he said.

"I have a personal commitment to customers and the organisation and the buck stops with me, so at the end of the day if there is a failure, I take accountability for that."

Jetstar has been operating a transtasman service from Christchurch since late 2005, giving South Island passengers plenty of time to get used to the company.

Elsewhere, it's been harder to convey some of its rules to passengers, such as the need to check in 30 minutes before takeoff.

"It's not a hard and fast rule. I've looked at all the close-outs and there hasn't been one flight closed out 20 minutes like some reports say.

"It's really about weighing up the needs of many thousands of people who will be travelling throughout the day, and holding up a plane for the benefit of one or two people."

Buchanan said his experience with people, technology and a training in civil engineering had given him the tools to run Jetstar.

After crossing paths with the airline several times during his work setting up "smart" technology for Qantas, he was a leading candidate to take over from former chief executive Alan Joyce.

Since being lured to Jetstar - a job he reluctantly admits some people find "sexy" - he has dealt with some difficult situations reminiscent of when the airline launched in Australia.

But there are different expectations from customers, depending on which side of the Ditch they live.

Aussies want a good onboard experience, while Kiwis want a good airport experience.

One of the hardest things to deal with in New Zealand is the winter weather, the cause of many delayed flights last Saturday, one of which saw Prime Minister John Key stranded in Queenstown.

Among Jetstar's priorities is to improve navigation technology so planes can fly in worse weather than now. The upgrade should be complete by June.

"That was unfortunate (about John Key) but what could we do? It was the weather, and every single plane was grounded that Saturday," he said.

"We actually got an email from his offices saying he was pleased with the way Jetstar handled everything."

Despite the initial setbacks, Buchanan is positive about the airline's future and unruffled by bad press.

Scheduling is back on track, people are beginning to understand check-in times and much of the feedback from the public has been positive.

Refunds are available for passengers disrupted by cancelled flights, and text reminders about check-in times - a suggestion from a frequent flyer - are proving popular.

"Are we happy with some of the operational things that have happened? Absolutely not. But are we trying to get the best possible product out there? Absolutely.

"It's been three weeks, and with all the things that have happened in that time we have tried to solve everything that has come up.

"If people had a bad experience during that time they should come back and give us another go. We're here to stay."

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