Tiger $1 fares

The Australian

SINGAPORE-based budget carrier Tiger Airways has sparked an all-out airfare war in Australia’s domestic market, by announcing a new range of cut-price fares.
Tiger Airways chief executive Tony Davis said the carrier had invested in Australia for the “long haul” and promised consistent, cheap fares for consumers in the face of competition from Jetstar and Virgin.

A subsidiary of international carrier Singapore Airlines, Tiger Airways announced today direct routes from Melbourne to the Gold Coast, Rockhampton and Mackay, starting on November 23.

A one-way ticket from Melbourne to the Gold Coast will cost $49.95, with the other routes costing $59.95.

Mr Davis said it was now up to the other budget airlines to match Tiger’s aggressive marketing strategy.

Jetstar already has gone on the front foot, today offering a limited number of seats from the Gold Coast to Melbourne for $1 next February.

“It’s the others who are running around like headless chickens,” Mr Davis said today on the Gold Coast at the launch of Tiger Airways’ foray into the Queensland market.

“You’ve got to ask who’s reacting to who? Anyone can offer a gimmick fare for a couple of hours to a selected group of users.

“We’re not going to be distracted or tempted into public slanging matches or responding to everything they do.

“It’ll be up to them to decide how they’re going to respond, not just today but for years to come.

“I think the Australian consumer is very savvy and what they really want is lower fares on a sustained basis.”

Mr Davis said Tigers Airways was able to maintain low fares by cutting out the extra services that their competitors offered.

“If you’re looking for a lounge with a free glass of wine before you get on the plane then, no, we’re not going to do that,” he said.

“We’re not going to offer you some of the extras that they (Jetstar and Virgin) think are essential if they’re going to get you to pay higher fares.”

Mr Davis said he was prepared for Virgin and Jetstar to try to squeeze Tiger Airways out of the domestic market but promised his company would stand firm.

“This is a long haul investment,” he noted.

“We’ve ordered a lot of aeroplanes and I think we’ve put our money where our mouth is.”