And What We Can Learn from Jetstar Asia’s Collapse
In a time when global travel is experiencing rapid change, businesses in the ground transport sector, especially premium services like ours, must reassess what sustainable pricing really means. The recent announcement that Jetstar Asia will cease operations by July 31, 2025, is a clear reminder of what happens when rising costs outpace revenue and pricing doesn’t evolve with market realities.
At Cars on Demand, our focus on sustainable pricing ensures that our Melbourne airport transfers, Sydney airport transfers, and other luxury services remain viable for the long term without sacrificing the premium experience our clients expect.
The Downfall of Jetstar Asia: A Warning to Transport Operators
Jetstar Asia’s closure after nearly 21 years came down to one thing: unsustainable operating costs. With some supplier costs rising by up to 200 percent, and added pressures from airport fees and terminal relocations, the low-cost airline found itself operating at a projected $35 million loss this financial year. Even with solid demand, underpricing and intense competition caused its downfall.
While Jetstar Asia catered to budget-conscious travellers, the lessons apply equally to the premium end of the transport market. If your pricing doesn’t reflect the true cost of delivering a reliable and professional experience, you simply won’t survive.
Why Chauffeur Businesses Must Get Pricing Right
Unlike rideshare apps or economy taxis, a quality airport limo in Melbourne or Sydney is not a disposable service. Clients expect:
- Full-time, licensed, professional chauffeurs
- Immaculate, late-model vehicles
- 24/7 support, real-time tracking, and seamless logistics
- Flexibility, reliability, and discretion
Each of these expectations has a cost. Vehicle maintenance, insurance, driver wages, licensing, and business overhead all factor in. Pricing models that undercut the market to chase volume may drive short-term bookings, but they ultimately jeopardise service quality and long-term business viability.
Sustainable Pricing Is Not Just Profitable, It’s Ethical
At Cars on Demand, we believe sustainable pricing is the only responsible way to operate. Our rates for limo service in Melbourne and other major cities:
- Ensure fair pay for professional chauffeurs
- Allow proper fleet maintenance and upgrades
- Cover administration, insurance, and compliance costs
- Avoid surge pricing that penalises loyal customers
- Enable long-term investments in service innovation
In simple terms, our pricing is designed to protect both the client and the service provider. It is a fair approach that allows us to continue delivering exceptional airport limo Melbourne services year after year.
Rising Costs and a Smarter Approach to Operations
Just as Jetstar Asia struggled with skyrocketing costs and shifting access to terminals, chauffeur companies must also navigate:
- Vehicle supply shortages
- Fuel price fluctuations
- Increasing insurance premiums
- Labour challenges in a tight market
We counter these challenges with better logistics, advanced dispatch systems, a flexible booking platform, and a focus on corporate clients who prioritise service over cheap rates.
This strategy is why businesses across Australia trust us for consistent and high-quality Sydney airport transfers and executive travel.
Final Thoughts: Cheap Isn’t Sustainable
Jetstar Asia led with low prices, but in the end, that alone could not save the airline. For the chauffeur industry, the lesson is simple. Clients value reliability and experience, and they will pay for quality if you can consistently deliver it.
At Cars on Demand, our pricing model prioritises long-term value. We combine customer satisfaction with business sustainability. That is how we continue building a strong national chauffeur network that meets the needs of today’s travellers without sacrificing tomorrow’s standards.
Ready to Book a Smarter Airport Transfer?
Whether you’re looking for Melbourne airport transfers, a premium limo service in Melbourne, or reliable Sydney airport transfers, Cars on Demand is your trusted partner.
Call us today at 1300 638 258
Or book online at www.carsondemand.com.au