http://www.smh.com.au/news/business/jetstar-bid-to-mop-up-discretionary-dollars/2007/05/01/1177788142782.html
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Jetstar bid to mop up discretionary dollars
Scott Rochfort
May 2, 2007
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JETSTAR last night launched its "biggest ever" sale, in an attempt to head off the planned entry of the Singapore Airlines-backed Tiger Airways into the domestic market.
Amid speculation Tiger has chosen Melbourne's Tullamarine Airport as its new domestic hub, the Jetstar sale has fuelled talk the Qantas budget offshoot might be looking to spoil an imminent announcement from its new low-cost rival.
"They probably heard Tiger is about to announce something," said the executive chairman of the Centre for Asia Pacific Aviation, Peter Harbison.
Jetstar has sent out teaser emails of the planned sale to its 200,000-odd Jetmail subscribers since Friday, and urged people to sign up their friends and family for the sale.
"It does suggest that the AOC [Air Operators Certificate application] is proceeding pretty quickly for Tiger," Mr Harbison said. The Civil Aviation Safety Authority declined to comment on the progress of Tiger's AOC. But there is talk the airline could have permission to fly commercially in Australia as soon as September. Tiger has so far declined to provide an update on its progress.
Mr Harbison said Jetstar might be aiming to dent early demand for Tiger flights. "They might want to mop up a whole lot of discretionary spending before Tiger enters the market," he said.
While Tiger is yet to indicate where it plans to fly, Mr Harbison said Jetstar might instead target "the routes they think Tiger will enter".
Tiger has hinted it might replicate its route structure in Asia, where it flies a mixture of leisure and main city trunk routes.
It is expected Tiger will not only target domestic routes but the booming outbound demand for flights to Asia, which Jetstar has already attempted to tap.
Tiger could do this by linking its domestic network to its international network, which connects through Darwin and Perth.
Tiger was expected to announce its Australian base last week when its shareholders - Singapore Airlines, Indigo Partners, Temasek and the Ryan family - were due to hold a board meeting last week.
"We've heard nothing," said Brisbane Airport spokesman Jim Carden, who dismissed suggestions the airport's domestic terminal did not have enough space for Tiger's five aircraft.
"There's space now and there will be space in the future," he said, noting the airport had plans for a "substantial expansion" of the terminal later this year.
Melbourne Airport spokesman Tom Perry said: "We haven't heard anything." But he said the airport did have plenty of room.