Qantas to Launch Low-Fare Airline
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Qantas said today that it would launch a new low-fare domestic carrier called Jetstar in May and that it had ordered 23 Airbus A320 planes for the new airline.
Jetstar is aimed at competing with Richard Branson’s successful no-frills Australian domestic carrier Virgin Blue, and its launch probably will set off a price war on highly competitive Australian domestic routes.
“The domestic leisure market is growing rapidly and now represents over 60% of all passengers,” Qantas Chief Executive Geoff Dixon said today. “Jetstar will concentrate on growing this market.”
Jetstar will begin selling seats in February and start flying in May, using 14 Boeing 717s currently operated by Qantas subsidiary Impulse Airlines.
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