In 2010, Jetstar entered the credit card market with the launch of the Jetstar MasterCard. Read our interview with Jetstar to discover the plans the airline had for the card and how it was first received by Aussie cardholders.
Following the launch of the Jetstar MasterCard in 2010, finder.com.au spoke with Jetstar to discuss why Jetstar released a credit card, the response from cardholders and what makes it a competitive credit offer. Please note, that as this interview was conducted shortly after the card was launched, the information is correct as of 2010. Since then, Jetstar has also launched a Jetstar Platinum MasterCard.
finder.com.au: Why did Jetstar decide to release a credit card?
Jetstar: We saw an opportunity to expand our offering for our customers with a new product that they would value. This is the first time we have offered a product beyond airline and holiday travel. Like with our existing flight offering, we really wanted to give as much value as possible back to the consumer, which we believe this credit card delivers.
f: What type of customers is Jetstar targeting with the Jetstar MasterCard?
J: The Jetstar MasterCard is aimed at leisure travellers, similar to the customer base that Jetstar already attracts. However, we believe it is attractive to anyone who is seeking a low credit card interest rate - plus our card is the first to couple low rates with an easy-to-use flight reward system.
f: What sort of response/feedback have you had from existing Jetstar customers?
J: We have been experiencing very strong demand for the Jetstar MasterCard, demonstrating that our customers believe that this is something that they can gain value from. We believe the simple rewards system makes it very attractive for our existing customer base seeking affordable and convenient travel. The Jetstar MasterCard extends our affordability and accessibility - Jetstar Dollars can be redeemed for Jetstar Flight Vouchers, which can be used as payment for Jetstar flights on the domestic or international network. The vouchers are automatically generated and sent to the customer.
f: What do you think is the most competitive feature of the card?
J: The Jetstar MasterCard combines attractive awards with low rates. The card has an incredibly low rate of 14.99% p.a. We believe that the rewards on the Jetstar MasterCard can be accrued significantly quicker than other competitors who offer flights as part of their reward systems.
f: It's been a little over two weeks since the launch. Are you happy with the take-up so far? Are the majority of applicants existing Jetstar customers?
J: Yes. We have experienced strong demand for the card so far and thousands of applications have already been processed. Many of the Jetstar MasterCard customers are existing Jetstar customers; however, we also believe it has the potential to attract consumers beyond our existing customer base who are attracted by the benefits.
f: The Jetstar MasterCard is a highly competitive credit card offer with low-interest rates and a good value rewards program. Virgin Money is planning to release a credit card in 2010. Do you think Australians will see the same competition that exists with domestic cheap flights between Virgin and Jetstar, with your respective credit card offers?
J: We welcome competition and believe this is good for consumers. We believe the Jetstar MasterCard will shake up the marketplace - similar to what we did when we first launched flights in the domestic Australian marketplace to present consumers a choice with real benefits.
f: To what extent do you believe the card's release will boost Jetstar's passenger numbers because of the rewards value of the card, over the course of 2010?
J: The main objective of the Jetstar MasterCard is to add value for our existing customers, and at the same time offer an attractive product for consumers who want a great credit card linked with attractive rewards.
f: Do you anticipate any plans for consumers to be able to interchange the value of their Jetstar and Qantas rewards points?
J: We are working with Qantas Frequent Flyer to introduce Qantas Frequent Flyer points as a reward option for account holders. It's envisaged these will be available in the first half of 2010.
f: Does Jetstar have any plans to venture into other consumer finance products?
J: Watch this space. This is something we may consider.
How do Jetstar Flight Rewards work?
Jetstar credit card holders have the choice to either opt into the Jetstar Dollars Program and redeem dollars for Jetstar travel vouchers to use for flights and holiday perks or transfer points to the Qantas Frequent Flyer Program. If you opt into the Jetstar Dollars Program, you'll accrue 1 Jetstar Dollar per $100 you spend on eligible purchases. As you accumulate these dollars, you could save up to $500 on Jetstar flights per year. Otherwise, if decide on the Qantas Frequent Flyer program, you'll earn 0.5 Qantas Points per $1 spent on eligible purchases.