Domestic market prepares to be mauled by Tiger

Australia’s domestic market has continued to grow at between 6% and 8% in the last couple of months.

Chart: Australian Domestic Air Taffic Growth
Source: BTRE

An analysis of individual routes shows the dominant role that the Melbourne – Sydney route plays in the domestic market. Traffic on this route alone represents one-seventh of all Australian domestic air passengers.

Chart: Top Australian Domestic Routes
Source: BTRE

Image: Melbourne AdelaideNext week, Tiger Airways enters the Australian domestic market by operating between Melbourne and the Gold Coast. Expect growth on this route to accelerate towards the end of 2007. Last week Tiger also announced that it would be entering the Melbourne to Adelaide market from 10 January 2008 with twice daily flights.

So far, Tiger has shied away from entering the two biggest routes from Melbourne, Sydney and Brisbane, instead preferring to focus on smaller, thinner routes.

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