Australia gears up for increased competition as Tiger announces first routes

Australia’s domestic market continues to grow at a healthy rate as competition between Qantas, its low-cost subsidiary JetStar and Virgin Blue intensifies. Providing further competition from this December will be Tiger Airways, which plans to launch daily services from Melbourne’s main Tullamarine airport to Darwin. This will be just the start of planned expansion that envisages five aircraft based in Australia within a couple of years.

Chart: Australian domestic air traffic growth

The top 10 domestic routes in terms of passenger volumes in 2006 are shown in the table below. Sydney to Melbourne dominates with nearly six and a half million passengers travelling between these two major cities in 2006. None of the top 10 routes saw traffic decline and there was double-digit growth for Perth – Sydney, Gold Coast – Melbourne and leading the way with nearly 15% growth, Melbourne – Perth.

Chart: Australias Top 10 Domestic Rotues 2006

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