Jetstar wings in for Darwin hub

NICK CALACOURAS

August 2nd, 2008

BUDGET airline Jetstar will set up an international hub at Darwin airport.

Less than 24 hours after Tiger Airways cancelled all flights to Darwin, Jetstar announced its plan to base seven planes in the Top End.

The agreement with the Territory Government will require Jetstar to base three aircraft at Darwin International Airport by June 2009 and a further four by June 2012.

The Government will provide $5million to help set up the hub and $3million to promote the new routes and destinations.

The agreement was signed off by Cabinet before the election was called, it was revealed last night.

Jetstar’s Unni Menon said the hub would allow Darwin to become a “pivot point”, a place to organise Jetstar’s business, for flights going to near-Asian destinations.

Chief Minister Paul Henderson said the $8million contribution had a “clawback clause” allowing the Government to withdraw the money if the airline does not deliver.

The Territory Government has given $2.2million since 2005 for a joint marketing campaign with Tiger Airways.

The Government also gave a $4million subsidy to Virgin Blue in 2001 to encourage the airline to fly to the Territory.

Both airlines have since pulled out of the Territory.

Darwin Airport chief executive Ian Kew said the planned $60million expansion of the airport would need to be “reassessed” to take into consideration Jetstar’s hub.