Impulse Airlines says it expects to post a 2000-01 net profit of $3.6m - a significant acheivement for an airline in its first year taking on the Australian domestic routes. The company is forecasting a net profit of $38m for the year to June 2002 along with plans to list on the stock exchange.

It is still early days, but Impulse has so far proved a far stronger competitor in the airfare war than the two Compass ventures which carried the hopes of many Australian travellers in the past but soon failed. Both consumers and the industry seem to be benefitting from the strong competition brought on by the arrival of Impulse and Virgin Blue with more people being enticed to travel by air.

An internet discount sales strategy appears to be a feature of the early success of both Impulse and Virgin Blue, now being copied by the more established airlines. Internet bookings account for up to 60 per cent of Impulse's sales which reduce booking costs and allow more seats to be offered at discount fares. Qantas has followed the new arrivals' lead by offering its own range of internet-only specials on its website.

Meanwhile, Impulse's new Newcastle-Melbourne service took off on Monday almost 80 per cent full. The Newcastle-based company has reopened this route as part of its east coast expansion plans. One-way fares are available at $199 initially but may fall as low as $125 once the route is established.

By: Cassandra Emery - Manager, FlightChoice