According to reports, the Australian airline Jetstar is going to expand its routes out of Sydney and Melbourne under its major expansion plan to tackle with the low fare wars with Virgin Blue and Tiger. As per its plan the airline will add 820,000 seats per year in both markets and it is planning to boost its capacity by 30%.

The airline will also provide an additional 45 weekly services in between the capital cities and the holiday destinations like Ballina, Adelaide, Townsville and Brisbane.

The airline has estimated a growth of 50% in the selected routes excluding its new expansion plans in Perth and Cairns. According to the market experts, the airlines are playing a cat-and-mouse game and creating concerns over their net profit and yields.

The largest airline of Australia, Qantas has also planned to increase its domestic capacity by 9.6% or 66,000 seats while Virgin Blue is planning to raise its capacity by 6% to 8% in the coming months. Jetstar is well ahead of other airline in terms of the new increased capacity with its flying increased by 120 services in a week.