The end of ultra-cheap fares

Updated September 1 2014 - 5:08pm, first published 4:10pm
Jetstar may be profitable domestically, but it has run into trouble trying to export its no-service model internationally.
Jetstar may be profitable domestically, but it has run into trouble trying to export its no-service model internationally.
Tigerair is thought to have a significant cost advantage over Jetstar, but it has never made a profit in Australia. Photo: James Morgan
Tigerair is thought to have a significant cost advantage over Jetstar, but it has never made a profit in Australia. Photo: James Morgan

When the discount airlines began advertising fares of $29 or $9 or $1 in the years since low-cost carriers arrived in earnest in Australia after the turn of the century, you may have caught yourself wondering: “How do they do it?”