June 17, 2007

Air market shake-up in Australia

Australia's aviation market is facing major changes in the wake of a failed US$9.3b takeover bid for Qantas.

High visitor numbers, a strong economy and high load factors are causing Qantas competitors, Virgin Blue and Jetstar to expand.

Tiger Airways from Singapore has also been given an entrée into the market.
The last major shake-up in the Australian market occurred when British billionaire Richard Branson launched his discount carrier Virgin Blue in August 2000, challenging Qantas' stranglehold on the Australian domestic market.

Qantas responded with its own cut-price offering, Jetstar, in 2004.

But the arrival of Tiger Airways has the potential to upset the market balance, with both Virgin Blue and Qantas' Jetstar preparing to improve their services.

Tiger Airways chief Tony Davis believes the no-frills formula which has worked so well in Asia can also succeed in Australia.

Read more from the source at: Calcutta News

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