Air price war as Tiger roars

A LOCAL airfare war erupted yesterday after newcomer Tiger Airways launched a $79.99 one-way fare between Melbourne and Darwin.

Budget rival Jetstar immediately matched the fare with a $79 ticket. Tiger is also offering a Melbourne-Singapore return fare via Darwin from $499.

Tiger, 49 per cent owned by Singapore Airlines, said it would begin domestic flights on December 1 subject to regulatory approval. It already flies between Singapore and Perth and Darwin.

Jetstar spokesman Simon Westaway said the Qantas subsidiary was keen to remain the low fare leader. "We have the lowest cost base of any airline in Australia."

He said Tiger's Darwin fare was a surprise, given that Mr Davis had pledged single-digit prices, plus taxes and charges, when announcing a domestic foray this year.

The Melbourne-Darwin route will allow passengers to connect with Tiger's service to Singapore.

Melbourne-Singapore return fares start from $499, including taxes and charges.

Read this news release of this article's source at Herald Sun by John Masanauskas, aviation reporter