Melb-Syd $10 ??????

The arrival of Tiger Airways later this year, combined with growth in the Virgin Blue and Jetstar fleets, is set to create an unprecedented boom in ultra-cheap promotional fares.
Tiger, which yesterday confirmed it would be based at Melbourne’s Tullamarine Airport, is applying for a licence to operate domestic services.
It expects to have five 180-seat Airbus A320 aircraft flying by the end of the year.

The airline, which is promising to undercut existing domestic fares, yesterday dismissed a fare sale by competitor Jetstar, which is offering one-way tax-inclusive companion fares of $3. The Jetstar cuts came as Qantas launched a sale and Virgin Blue slashed 25 per cent off some fares.

“I think that we can do better than a convoluted offering of $3 if you take a friend who pays full fare, but … we don’t want to reveal exactly the pricing strategy we’ll be adopting,” Tiger chief executive Tony Davis said.

He has previously suggested the airline could offer one-way promotional fares as low as $10.

Jetstar chief executive Alan Joyce denied his airline’s latest sale was aimed at Tiger, saying it was designed to fill seats in the low-season months of June, August and November.

The fare-cutting frenzy is set to cross the Tasman, with confirmation that a new no-frills airline called kiwijet plans to start flying in New Zealand in December and intends to service Australia.