Virgin Australia has revamped its airfare pricing structure and today began selling just three fare types Saver, Flexi and Premium in an apparent move to increase ancillary revenue. Saver is bare bones, just a seat and carry-on luggage, everything else costs extra. The Flexi and Premium fares include various add-ons but cost a whole lot more. For example, Sydney to Melbourne on May 31 Saver fares start at $88 while the Flexi is more than double at $199. The cheapest Qantas fare on the same day is $117, while Jetstar costs from $59. Initial thoughts are that Virgin is trying to have it both ways – by being a business carrier with a low cost carrier fare structure – and not sure if that is possible, especially when the Qantas Group carriers Qantas and Jetstar can attack on price at both the top and botttom. Meanwhile, Tiger Australia has posted a $7.1m pre-tax loss for its latest financial year and has cancelled plans to expand its fleet by 20%.

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