KEY POINTS:
Budget airline Jetstar has offered Australia's lowest-ever domestic air fares on its website, selling 5000 seats for just 5c each.
The fares, which include taxes and other charges, went on sale last night.
The offer comes as competitor Tiger Airways prepares to launch its operations in Australia.
Jetstar spokesman Simon Westaway said the fares, offered on seven of Jetstar's routes, were a bonus for travellers.
"We believe this is the lowest all-inclusive air fare ever offered in the domestic market in Australia since domestic air travel commenced," Westaway said.
The airline also flies between Christchurch and Sydney, Melbourne and the Gold Coast.
Westaway said Jetstar was considering flying out of other New Zealand cities and was still giving "active consideration" to flying New Zealand domestic routes.
The fares will be offered on seven Jetstar routes - Sydney to the Gold Coast, services from Melbourne to Hobart, Launceston and Newcastle and flights from Brisbane to Mackay, Rockhampton and Newcastle.
Tiger Airways, the budget offshoot of Singapore Airlines, is working to get regulatory approval to begin operating tomorrow.
- AAP
