08 February 2007

Does Oz need another airline... you bet!

The cozy duopoly that has permeated Australian aviation for decades may be coming to an end. If the Ryan Family+SQ JV Tiger Airways has its way it will deploy at least 3 possibly 5 A320s into the market. Returning the Airbus single aisle to at least a footprint there.

So will this shake up that cosy duopoly? Probably not. But it could easily be enough to get QF and little Blue to rethink some of their upwardly mobile pricing strategies.

Australia as a market should have more competitive pricing. Its price per mile ranks above average compared to other markets. Qantas makes great profits and potential for more is what drew TPG and Macquarie to make their successful bid.

Good luck Tony Davis. But you will need more than 5 planes to do this.

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