Fare war prompts travel surge

Air travel in Australia is set to jump this year on the back of the discount fare war, according to industry analysts. Forecasts by Qantas Airways have the market growing by 8 per cent but the Centre for Asia Pacific Aviation says the growth could be as high as 15 per cent. This compares with 2 per cent growth over the last three years combined in conditions of retarded competition. This saw even the cheapest fares climb 26 per cent since 1995.

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