Australia

Australia's first low cost airline was Compass which launched operations in 1990 but was short lived. In 2000 Impulse and Virgin Blue commenced low cost operations bringing fierce competition to Australian cities. Virgin Blue has become the nation's second largest airline, whilst Qantas purchased Impulse and operated it in a 'wet leasing' arrangement before transforming it into its new low cost carrier Jetstar. Qantas has launched two low cost carriers: Jetstar competes with Virgin Blue in the Australian domestic market, while Australian Airlines operated internationally to Asian destinations. In 2006 Qantas began operating the Australian Airlines operation in a 'wet leasing' arrangement which essentially means Australian Airlines crew and aircraft operate services under the Qantas brand. As at 2006, Qantas intends to continue developing a sole low-cost brand around Jetstar which will include international destinations.

In early 2007, Singapore low-cost carrier Tiger Airways announced their intention to form a subsidiary airline in Australia. Tiger Airways Australia began operations out of Melbourne Airport in November 2007, and have, in the short time since, grown a network that spans every state and territory in the country.