Tiger gets Qantas by the tail

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Tiger gets Qantas by the tail - News - Travel - smh.com.au

Against the odds, this airline is beating everyone in the price wars, writes Clive Dorman.

It wasn't meant to happen like this. When Qantas created Jetstar in May 2004 to counter the emergence of Virgin Blue, part of the unspoken strategy was to "lock up" the Australian low-cost airline market forever.

Jetstar's ultra-low fares were meant to poison the water for any other upstart airline hoping to compete in the local travel industry.

When Qantas arch-rival Singapore Airlines invented Singapore-based Tiger Airways just five months later, Qantas's response was to invent a new version of Jetstar and base it in Singapore to swim in the rivers of gold that were thought to be flowing towards the Asian low-cost airline industry
 
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