Tony Davis, Tiger Airways' chief executive, said on Thursday that Melbourne "presented the best opportunity" for the launch of the airline's Australian subsidiary.


Davis said the company was in the process of obtaining the Air Operator's Certificate and in talks with several cities on the planning of a route network.


"We've also started talking to a number of cities about the opportunities for locating a second base in Australia," he added.

Analysts predict tough competition and aggressive price-cutting on tickets.

Tiger Airways Australia expects to carry around two million passengers in its first year on its fleet of five new Airbus A320s, and provide over 1,000 jobs, the statement said.

Tiger Airways is 49 per cent owned by national carrier Singapore Airlines and 11 per cent owned by Temasek Holdings, the state-owned investment company.