Qantas’s main domestic rival, Virgin Australia, has stated that it is targeting Jetstar with its plan to buy low-cost carrier Tiger Airways Australia, which operates domestic routes. However, Hall says he is not losing any sleep over the deal.
Jetstar remains focused on its own operation despite Virgin’s move into the low-cost market, Hall says. However, he notes that Jetstar has a “scale advantage” over Tiger. While Jetstar has more than 60 aircraft in its Australia and New Zealand operation, Tiger has 11. This enables Jetstar to keep its cost base lower, says Hall.