Asian budget airlines launch price war

Asian low-cost airlines are offering dirt-cheap tickets to perk up travel during the summer holidays amid the global economic downturn.

Singapore-based Tiger Airways, which flies to destinations in Southeast Asia, Australia and China, announced Tuesday it would launch summer fares starting at about 16 US dollars, including taxes.

The carrier, which is 49 percent owned by Singapore Airlines, said in a statement it would offer its "biggest ever network of seats" and was adding new destinations for its summer schedule from March 29 to October 24.

"Tiger Airways is bucking the global aviation trend," the airline said, referring to declining passenger numbers for full-service carriers worldwide.

Rosalynn Tay, managing director for Tiger Airways Singapore, said the airline would "demonstrate that we will continue to grow our business even in these difficult trading conditions."

Jetstar Asia, another Singapore-based budget airline, said it had extended until August 16 a promotion to beat the cheapest price offered by rivals.

AFP