War in the air as Tiger challenges Jetstar
A report in The Age says that the jostling to be deemed the leading budget airline in Australia continues, with Jetstar bettering Tiger Airways’ low fares to Tasmania and Virgin Blue revealing it will set up a $61 million headquarters to further its expansion.
Tiger fired another salvo by unveiling $39.99 one-way flights on the Melbourne-Launceston route from November 29.
It is the seventh domestic route the Singapore Airlines-backed carrier has announced as it continues its attempt to blow Jetstar out of the domestic market.
Tiger has already announced $59.95 flights from Melbourne to Perth, $80 flights from Melbourne to Darwin, and $49.95 flights from Melbourne to the Gold Coast.
Tiger chief executive Tony Davis said the airline would announce further domestic routes in coming weeks, adding, Tiger Airways is committed to bringing its low-fare formula to as many destinations as possible across Australia,” Mr Davis said.
“We have already shown that Tiger Airways will continue to offer dramatically lower fares on a consistent basis, not just the one-off promotions or sales favoured by our competitors.”
Qantas budget carrier Jetstar was quick to respond, trumping Tiger’s offer with $29 flights on the Melbourne-to-Launceston route from November 29.
Jetstar had given a commitment to beat any domestic fare that Tiger offers, but it has not bettered the $59.95 Melbourne-Perth deal, offering $99 flights one way.
“To be the Olympic champion, sometimes you might come second in a heat, but that doesn’t mean you don’t end up on top of the dais at the end of the meet,” said Jetstar spokesman Simon Westaway.
“We have worked hard to get fares leadership, we’ve got demonstrated fares leadership, and we will continue to put what we believe is the most competitive offering at the time within the market.”
Report by The Mole
John Alwyn-Jones
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