Singapore-based Tiger Airways has revealed more details of its new low-cost venture, destined for Australia.

The carrier has announced that Melbourne will be the base of the Australian operations, and although no start-up date or flight schedules have been announced the airline is banking on carrying two million passengers in its first year.

Dismissing critics who may question the likelihood of a third domestic airline succeeding in the Australian market, chief executive Tony Davis said: "We have a fantastic model.

"We have a fantastic shareholder group, who have a lot of experience both in the low-cost sector and in the traditional airline model, and we have a management team that’s well used to competing effectively.

"We’ve done it very successfully in Singapore. You can certainly ask our friends at Jetstar how their performance has been in Singapore versus Tiger’s."

Tiger Airlines started flying in September 2004 and have since then expanded at among one of the fastest rates seen in the airline industry.

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