20 September 2017
The "Big Two" dominating the Australian domestic scene
Tiger Airways and Virgin Blue have filed injunctions to
prevent a resurfacing of the long-defunct Jetstar.
This must be good news for the long-suffering public who
are crying out for real competition.
CEOs of both highly profitable airlines agree that the
country cannot afford a third domestic entrant, given that
Tiger and Virgin have made further new aircraft orders and
the highly-advertised fare-cuts to be introduced next year.
"We admit that fares can be a little lower than they are
now, but unlike the outdated government policies of the
90's we are driven purely by investment and profitability.
Both cannot be sustained by the arrival of a third entrant."
the CEOs outlined in a joint statement yesterday.
Australia has had a recurring history of domestic duopolies
since the 1950s, where Ansett and TAA were once
protected companys in there own right. From the 1990s
till 2007, the 'big two' were Jetstar and Virgin. It is ironic
that Tiger was introduced as a "real competitor" to break
the then unpopuler duopoly.