Qantas orders new aircraft to meet Tiger challenge

The Straits Times, March 30, 2007


SYDNEY - AUSTRALIAN airline Qantas ordered nine Airbus A-320 planes for its budget offshoot Jetstar yesterday, in a move analysts said was aimed at heading off a challenge from Singapore Airlines' low-fare carrier, Tiger Airways.

Qantas chief executive Geoff Dixon said Jetstar would use the aircraft, to be delivered from late this year, on domestic and short-haul international routes.

He said Qantas would also boost the capacity of its full-service operations in Australia by transferring four Boeing 767-300 aircraft currently used for international flights to domestic operations.

Mr Dixon said the increased capacity for both Jetstar and Qantas should help the airline retain its 65 per cent share of the Australian domestic market. He did not say how much the new aircraft would cost.

Centre for Asia Pacific Aviation managing director Peter Harbison said Qantas had been stung into action by discount carrier Tiger's plans to aggressively target the Australian market.

'War has been declared,' he said. 'This is part of Qantas' response to the threat from Tiger.'

Tiger announced last month that it was seeking clearance from Canberra to begin operating Down Under before the end of the year.

The airline has helped revolutionise travel in South-east Asia with its low-cost offers and said it planned to do the same in Australia.

Mr Harbison said the Australian domestic market is to set to become a battleground involving newcomer Tiger and incumbents Qantas, Jetstar and Virgin Blue.

AGENCE FRANCE-PRESSE