Jetstar, Virgin Blue, Qantas, Tiger Airways face toughest domestic fare discounting environment ever

Australian domestic fare discounts have dropped to their lowest levels since the Bureau of Transport and Regional Economics commenced their survey in 1992, as Jetstar and Tiger Airways vie for the 'lowest fare' carrier status. Qantas and Virgin Blue meanwhile have enjoyed reasonably resilient business and restricted economy fares, thanks to a clamp down on capacity. But these benefits could be eroded as Tiger enters the lucrative Sydney-Melbourne and Sydney-Adelaide markets from July.