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The airfare war has started in Queensland, Australia.  The battle royale between new comer Tiger Airways and Qantas’ low cost carrier Jetstar has sparked fares as low as $1 one way between certain locations. 

The low cost market in Australia is expected to get even more crowded with Virgin Blue expected to announce their low cost carrier.  The market is going to get hot in Australia. 

"Tiger's entry is going to stimulate the market very significantly and everyone will be winners – consumers, the tourism industry and the economy," said Peter Harbison, chairman of the Centre for Asia Pacific Aviation.

Tiger said that tickets will be $49.95 or $59.95 and has said prices will remain low unlike Jetstar that has sales and then prices go back up. 

Qantas Chief executive Geoff Dickson was adamant in saying his group's 65 percent market share was "a line in the sand that won't be crossed". 

Good luck with that Qantas…

News.com.au 

Jetstar   &   Tiger Airways