AVIATION - Jetstar takes Tiger by tail

Herald Sun, May 29, 2007

QANTAS offshoot Jetstarhas fired its first shot for control of the budget travel market by offering a new bonus system to undercut Virgin Blue and soon-to-launch Tiger Airways.The strategy is based on rewarding loyal Jetstar passengers with vouchers which they can use to offset the cost of future travel.
Under the new arrangement, customers can claim double the difference between the cost of competing fares if they are offered an online fare lower than Jetstar's fare.
Both flights must be on the same day and take off within an hour of the other.
The new reward plan is among a raft of major changes aimed at improving Jetstar's 15 per cent share of domestic travel.
The new strategy, which was outlined to the market last week by Qantas chief executive Geoff Dixon, also involves plans to add a frequent flyer program to Jetstar services next year.

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