Jetstar and Tiger battle for Southeast Asian skies

Can Jetstar and Tiger Airways rely on growth in air travel alone to succeed?

Southeast Asia's skies have become a battleground for low-cost carriers duking it out to capture the region's increasing appetite for air travel.

As Freddie Laker a British airline entrepreneur who founded Laker Airways in 1966 and Richard Branson both learned, the airline business is one of the toughest industries to make money in, but, to some at least, the Asia market is worth fighting over. Specialists forecast that air travel will grow by about 8% a year during the next 20 years thanks to rising incomes and lower prices. But the more airlines slash prices, the harder it is for them to operate profitably.

To prepare for future battles, carriers are trying to...

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