Jetstar is adding two new routes to its services from Canberra. It will offer flights to Melbourne from July 1 and to the Gold Coast from the middle of September.
It's already possible to fly to both destinations from Canberra with other airlines, but the extra airline increases competition and may push fares down.
At the time of writing, the cheapest fare from Jetstar's competitors for Canberra to Melbourne on July 1 was $141, and to Gold Coast on September 16 was $179.
"To celebrate the launch of the new flights, Jetstar is launching a flash sale at midday today with fares between Melbourne and Canberra starting at $55 and Gold Coast flights from $49," a Jetstar statement said.
The Melbourne flight will be daily and the Gold Coast one on Mondays, Wednesdays, Fridays and Saturdays.
Jetstar which is owned by Qantas started flights from Canberra to Brisbane late last year. The demand for the five-times-a-week flights has convinced the company that the demand for flying to and from Canberra is strong.
It's a big change of heart from 2019 when Qantas chief executive Alan Joyce said that Canberra Airport's exorbitant fees had killed any chance of making the low-cost carrier in his company fly to the capital.
As he put it at the time: "We have no other airport in the country that Jetstar flies to where the airport charges would be as high as that, so we can't put Jetstar in, because it economically doesn't work for us, because that's part of the business model."
But now the economics have changed, probably because COVID has made domestic travel more attractive.
Jetstar's chief executive Gareth Evans said he was "excited" by the new routes.
"The Canberra region has a huge amount to offer visitors with blockbuster exhibitions and world-class museums and galleries as well as lots of activities for school groups," he said.
"Canberra is also the gateway to Thredbo, one of Australia's most sought-after ski and mountain-biking destinations, which will be popular with Melburnians."
The ACT's Chief Minister Andrew Barr saw the expansion as a vote of confidence in Canberra. "Jetstar's entry to the Canberra market in December made it cheaper and easier to travel to and from South East Queensland," he said.
"The strong take up of this route by Canberrans and visitors alike has now provided the opportunity to work with the popular carrier to add more flights across their extensive network."
Canberra Airport's chief executive, Stephen Byron, said: "Domestic aviation is strong, and Jetstar's expansion proves that the low-cost model works for our city and the region. This firmly cements Jetstar's presence in Canberra which is great news for leisure travel."
