Jetstar Airways Pty Ltd, trading as Jetstar, is an Australian low-cost airline (self-described as "value based") headquartered in Melbourne, Australia. It is a wholly owned subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue. Jetstar is part of Qantas' two brand strategy of having Qantas Airways for the premium full-service market and Jetstar for the low-cost market. Jetstar carries 8.5% of all passengers travelling in and out of Australia.
The airline operates an extensive domestic network as well as regional and international services from its main base at Melbourne Airport, using a mixed fleet of the Airbus A320 family and the Boeing 787 Dreamliner. Like its Qantas parent, Jetstar competes with Virgin Australia and its fully owned low-cost subsidiary Tigerair Australia.
Qantas through the Jetstar Group has stakes in sister airlines Jetstar Asia Airways, Jetstar Pacific Airlines and Jetstar Japan.
The airline was established by Qantas in 2003 as a low-cost domestic subsidiary. Qantas had previously acquired Impulse Airlines on 20 November 2001 and operated it under the QantasLink brand, but following the decision to launch a low-cost carrier, re-launched the airline under the Jetstar brand. Domestic passenger services began on 25 May 2004, soon after the sale of tickets for her inaugural flight in February 2004. International services to Christchurch, New Zealand, commenced on 1 December 2005. Although owned by Qantas, its management operates largely independent of Qantas through the company formerly known as Impulse Airlines.