Daily Web Ramblings

NEW budget carrier Tiger Airways will offer some passengers a cheaper fare to the Gold Coast than it would cost to get a taxi to Melbourne Airport, igniting talk of another price war in the industry.

The airline, which welcomed its first plane into Melbourne yesterday, will offer $14.95 one-way flights to the Gold Coast and Launceston. Fares of $24.95 will be available to Rockhampton, Mackay and the Sunshine Coast.

It is the cheapest fare the airline — which is set to commence flying on November 23 — has offered, and even includes taxes and charges.

Jetstar spokesman Simon Westaway said the offer indicated Tiger’s business model was unsustainable.

“That is quite frankly well below what you’d have to pay for most taxes and charges,” he said.

“$14.95, beyond being a nice gimmick, that ain’t a sustainable fare offering.”

He did not say whether Jetstar would match the fares.

Chris Ward from Tiger Airways refused to say how many customers would be able to get the $14.95 tickets.

The fares go on sale today and will be available from November until March, except for a month over Christmas.