Steve Creedy in The Australian says that Tiger Airways offering one-way fares between Perth and Melbourne for $59.95 has prompted Jetstar to abandon its vow to remain Australia’s lowest priced airline.
The Singapore-backed low-cost carrier announced last week that the tax-inclusive fares from Melbourne’s Tullamarine airport to Perth would begin on December 1, but Jetstar refused to match the deal, saying the fares were unsustainable.
Jetstar instead launched a $99 one-way sale fare.
The Qantas offshoot had vowed not to be undercut but spokesman Simon Westaway said the airline did not believe it could justify a fare lower than $99 one-way, even though it had the lowest costs in Australia.
Tiger chief executive Tony Davis said the fares would save travellers $258, compared with the lowest equivalent return fares currently available on other airlines.
Tiger also launched Melbourne- Alice Springs flights from $49.95 one-way inclusive.
Report by The Mole
