Jetstar's attempt to dominate the South-East Asian low-cost aviation market has been unsuccessful with their market position now under further threat. Singapore-backed Tiger airways has announced its plans to further expand its operations to include Australia.
Details regarding a conference were leaked, sparking speculation that a domestic air fare war would ensue, offering prices not seen since Qantas-backed Jetstar's launch three years ago. The speculation quickly turned to reality with Qantas launching a 500,000 seat sale as well as a two-for-one deal. The airline denied the sale was a response to Tiger's impending launch.
There are indications Tiger will target the growing outbound market to Asia as well as threaten the domestic flight duopoly between Virgin Blue and Qantas-Jetstar.
UPDATE: Tiger Airways Australia has hinted it will offer fares of less than $10 when it launches its low-cost operation later this year.
Singapore-based Tiger already operates from Singapore to Darwin, and is currently offering $40 one-way fares. It intends to start serving Perth next month.