Tiger pulls out of Darwin…………

Tiger Airways has announced that is suspending  services between Darwin and Melbourne and Singapore from 26 October 2008, giving the reasons as current oil prices, and the uneconomical cost of operating to Darwin Airport.

Steve Burns, Chief Operating Officer of Tiger Aviation, said, “The cost of operating to Darwin is the highest of any airport on the entire Tiger Airways’ network.”  “This is an important point to stress; combined airport and fuel costs in Darwin cost more than any of the 27 airports that the airline serves across Australia and Asia.”   â€œIt is just incompatible for a true low fare airline to operate to such a high cost destination.”

Tiger Airways will continue to assess the situation at Darwin Airport with the intention of reestablishing services in the future if costs become more reasonable.

Passengers with bookings before 26 October will still be able to fly to their destination.  

For passengers with international bookings after 26 October 2008 Tiger Airways will contact affected passengers regarding their bookings in the coming weeks to offer a full refund. Tiger Airways has not sold domestic tickets from Darwin beyond 26 October 2008.

At the same time Australia’s claimed low fares carrier Jetstar has confirmed Darwin as its future hub for its near Asian strategy bringing new planes, flights, jobs, visitors and future investment into the Northern Territory.

With the financial support of the Northern Territory Government announced today, Jetstar will seek to build the infrastructure necessary for the carrier to base up to seven aircraft in Darwin over the next five years creating for the Territory unparalleled opportunity to build regional tourism numbers and to foster further industry development.

Jetstar currently operates 46 flights into and out of Darwin each week, including international services twice daily to Singapore.  A five times weekly service to Ho Chi Minh City will commence on 1 September* 2008.  Both the Singapore and Vietnamese services will have some connections to Jetstar domestic services to Darwin from Sydney, Melbourne, Brisbane, Adelaide and Cairns. 

Flights and Asian destinations will grow under the new strategic plan which will initially see three aircraft based in Darwin by mid 2009.

Alan Joyce, Jetstar Chief Executive and Qantas Group Chief Executive Designate said creating a transport infrastructure hub in Darwin with direct access to some of the major cities and aviation networks in Asia, will give Territorians unprecedented opportunity to significantly boost tourism and build new industry networks.

“Darwin will now be the strategic pivot for the growth of our Asian strategy with our short haul fleet of A320 aircraft,” Mr Joyce said.

“The hub will build connections between Australia and Asia via Darwin, providing new direct access to more Asian centres and greater access to Jetstar’s growing networks in Singapore and Vietnam.”

“In September we commence the next stage in our Darwin-Asia strategy with the commencement of services to Vietnam.”

“We are looking at a range of destinations within a four to five hour flying range of Darwin,” he said.

Jetstar in the very near future will commence recruiting for cabin crew and other Jetstar related personnel in Darwin.

“Over the next few years as the hub build momentum, Jetstar will be hiring a number of direct staff but the potential indirect impact to tourism and industry opportunities and the boost to jobs cannot be underestimated,” Mr Joyce said.

“With the support of the Government, the Airport and local industry we can potentially re-position Darwin as a strategic transport hub into near Asia.”

“This then provides the opportunity for the city to sell its strategic geographic location to companies and industries trying to build complementary industry and operations in Darwin to benefit  both South East Asia and Australia,” he said.

Jetstar said there were still be challenges ahead to ensure that the Darwin hub proposition continues to perform in a cost efficient manner.

“Challenges include the need to have a competitive charging regime at Darwin Airport. We continue to work cooperatively with the airport to realise this outcome,” Mr Joyce said.

A Report by The Mole