Virgin Blue Airlines launched a new, low-cost direct daily flight from Canberra to Hobart and Townsville yesterday. With rivalry for the hot business route stepping up between Virgin and Qantas, Virgin has introduced sale prices of $89 one way for Canberra-Hobart and $169 one way for Canberra-Townsville.

Virgin Blue chief executive Brett Godfrey said the Canberra-Townsville flight would be beneficial to those accessing Australia’s largest army barracks in Townsville, while Virgin Blue’s general manager Mathias Friess said that while Qantas has added more flights on the route to offer a more flexible schedule, Virgin’s lower price point is ultimately more important to passengers than frequent flights.

Budget airline Tiger has also announced new routes, stating that it will be flying four times a day between Melbourne and Sydney from July. The Singapore and Melbourne-based airline has never flown the Melbourne to Sydney route, which it says is one of the most popular routes in the world. Agents have reported that the move is likely to start a price war which could see ticket prices drop to below $50.

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