JETSTAR and Tiger Airways opened a new front in the airline price war today, releasing fares from as low as one cent for interstate flights.
Jetstar announced that 5000 tickets at one cent each would go on sale in a one-hour internet blitz next Tuesday for travel between May 3 and June 3.
Tiger hit back by announcing it would sell 100,000 flights tonight, with prices starting at $9.95.
And Tiger was quick to point out that its super-low fares included baggage, a dig at the new Jetstar JetSaver Light, which offers customers a $10-$20 discount if they travel with carry-on luggage only.
Jetstar's one-cent flights will be available from 8pm on Tuesday February 19, for travellers who have signed up to JetMail email service, for travel from May 3 to June 3 this year.
Tiger flights will be for sale on its website from 6pm today and seats will be available for travel from February to October.
"Yet another 100,000 $9.95 fares means that even more Australians will get the real deal when it comes to flying in the coming months,'' said Tiger Airways managing director Chris Ward.
Jetstar will also cut $10 from ordinary one-way interstate Jetsaver fares, and $20 from international fares for customers with 10kg or less of carry-on luggage.
"This is the most competitive market of probably any aviation market in the world,'' Jetstar chief executive Alan Joyce told journalists at an official launch in Melbourne.
"We have got Tiger and Virgin operating on nearly every Jetstar route ... (and) we see ourselves having to raise our game to meet that challenge.''
Mr Joyce said rising fuel prices had forced the airline to reduce costs in other areas to keep the fares competitive.
Customers with existing Jetstar fares cannot exchange their tickets for the cheaper fares, even if they are only planning to travel with carry-on luggage.
http://www.news.com.au/heraldsun/story/0,21985,23200039-662,00.html
