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Australia's Jetstar offers 5 cent domestic airfares


Published :
Wed, 21 Nov 2007 06:58
By : Agencies
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SYDNEY (Thomson Financial) - Low-cost Australian airline Jetstar said Wednesday it will offer flights for 5 Australian cents on some domestic routes as Singapore's Tiger Airways prepares to enter the Australian market.

Jetstar will offer 5,000 tickets for on seven domestic routes through its website for five hours from 7.00 pm (0800 GMT) Wednesday, spokesman Simon Westaway said.

The spokesman did not rule out offering free flights in the future.

'It is about encouraging travel at all times of the year to all destinations,' Westaway said.

'The push towards zero-rated airfares may be a way to keep it attractive.'

Westaway denied the move is linked to Tiger Airways' Australian launch Friday, but said Jetstar is not underestimating the Singapore low-cost carrier.

Tiger Airways already operates services between Singapore and the northern Australian city of Darwin, but from Friday will also offer flights between points within Australia.

It has signaled that it intends to make an impact by offering flights for as little as 9.95 dollars.

'Tiger are competitive. They are a good airline in their own right. We are not going head to head. We respect them for the competitor that they are going to be,' Westaway said.

Jetstar, a subsidiary of Qantas Airways, already competes with Virgin Blue in the domestic market and is expanding into Asia.

Jetstar, established in 2004, already has costs 40 percent below those of Qantas and 20 percent below those of Virgin Blue and expects the domestic cost base will be the same for Tiger Airways' future operations in Australia, Westaway said.

'Establishing in Australia requires Australian labor rates,' he said.

(1 US dollar = 1.13 Australian dollars)

afp

jm/jm

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Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.




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