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Welcome arrow Low fare flight news arrow Airlines arrow Budget airline: Flights plunge to $29
Budget airline: Flights plunge to $29 PDF Print E-mail
Written by BLAIR RICHARDS / Mercury   
Friday, 27 July 2007

AN airfare price war -- with fares as low as $29 -- was sparked yesterday by the announcement that budget carrier Tiger Airways was entering the Tasmanian travel market.

Tiger will fly daily between Melbourne and Launceston from November 29.
The announcement immediately sparked a price war, with Jetstar announcing $29 Melbourne-Launceston flights starting on the same day.
Tourism Minister Paula Wriedt said the new carrier would renew interest in travel to the state.
"This is great news to have an additional low-cost carrier coming to Tasmania, particularly for the north of the state," Ms Wriedt said.
The State Government has provided Tiger with incentives to enter the Tasmanian market.
"The Government has been working very closely with Tiger airways," Ms Wriedt said.
"We are hopeful once they expand their fleet of five planes they'll expand their operation and come to Hobart."
Tiger Airway's spokesman Tony Rasman said Launceston was chosen because of favourable negotiations between the airline and Launceston Airport.
"I think the negotiations with the airport were instrumental," he said.
Mr Rasman said there were no immediate plans to provide a Melbourne-Hobart service.
Ms Wriedt said she did not expect the new carrier to affect the number of people travelling on the Spirit of Tasmania ferries.
She said Tasmania was still attractive to touring holiday makers.
"You've got your core group of people there who will always want to bring their cars," she said.
Tourism Industry Council chief executive Daniel Hanna said he was delighted by the news.
He said Tiger's move demonstrated confidence in the Tasmanian tourism industry.
"The low fares and increased competition are great news for the region and for all of Tasmania," Mr Hanna said.
He said the fact that Tiger operated out of Victoria, Queensland, Northern Territory and Western Australia provided opportunities to promote Tasmania in other markets.
Tiger Airways will initially operate one flight to and from Launceston each day.
Tiger Airways is an Asia-Pacific budget airline based in Singapore and Melbourne. Its major shareholder is Singapore Airlines

Source: Mercury.

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Last Updated ( Friday, 27 July 2007 )
 
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