Australian travellers will soon have the choice of another budget airline as Air Australia prepares to launch its new service.

The launch coincides with the start of an airline price war as Virgin Australia moves to take advantage of the recent turmoil in Qantas.

Erin Smith reports.


Air Australia is yet to take to the skies.

It has its planes ready, with its new Aussie colours and iconic logo, and the staff are also ready and today showed off their new outfits.

The hard part is to come as the new budget airline tries to break into the increasingly competitive Australian airline market.

Michael James, CEO Air Australia: “We know it’s a very turbulant and competitive environment.”

Air Austalia says it will start by servicing the main domestic hubs of Brisbane, Melbourne and Perth and will also fly to China, Thailand and Indonesia.

Michael James, CEO Air Australia: “It’s a low cost carrier operating on those niche markets which will see choice and fresh back into the aviation market in Australia.”

The airline is to be based in Queensland, a move that’s welcomed by the Queensland Government.

Paul Lucas, Attorney-General: “Forty per cent of the top 20 busiest airports in Australia are in Queensland becaue the tourists destinations are so great.”

As Air Australia prepares to lure passengers to its new service, there is an escalating price war as Virgin Australia moves to take advantage of the recent turmoil at Qantas.

It’s no surprise that passengers here at Brisbane Airport are welcoming increased competition within the Australian airline industry and the lower fares it should lead to.

Vox 1: “I always look forward to lower prices.”

Vox 2: “If they keep fighting price wars it makes it beneficial to us regional people.”

Air Australia plans to put its first planes in the air on November the 15th.

Erin Smith, QUT News.