Darwin To Be Jetstar's Wider Gate To Asia

The Age

Monday August 4, 2008

Mathew Murphy and Daniella Miletic

DARWIN will become the hub for Jetstar's expansion into Asia as rival low-cost carrier Tiger Airways axes its Darwin services.

The Northern Territory Government will provide $8 million towards establishing the hub and attracting tourists to use Darwin as a gateway into Australia.

Jetstar, which operates 46flights in and out of Darwin each week, plans to base up to seven planes at the airport over the next five years. Jetstar chief executive and Qantas chief executive-designate Alan Joyce said the airline would boost its Asian destinations with three planes by mid-next year.

"In September we commence the next stage in our Darwin-Asia strategy with the commencement of services to Vietnam," he said. "We are looking at a range of destinations within a four- to five-hour flying range of Darwin."

Northern Territory Chief Minister Paul Henderson said the hub would inject $160 million into the local economy over the next five years, create 570 jobs and bring an additional 250,000 tourists.

The news for the top end was not all good, though, with Tiger Airways announcing it would drop flights to Darwin, including its direct Melbourne route, because of high oil and operational prices.

Chief operating officer Steve Burns said Tiger would axe its Darwin-Singapore and Darwin-Melbourne services from October 26.

Virgin Blue will drop its Melbourne-Darwin direct route from this month.

"The cost of operating to Darwin is the highest of any airport on the entire Tiger Airways network," Mr Burns said.

"This is an important point to stress; combined airport and fuel costs in Darwin cost more than any of the 27 airports that the airline serves across Australia and Asia.

"It is just incompatible for a true low-fare airline to operate to such a high-cost destination."