Budget carrier Scoot on inaugural flight to Sydney
The airport's chief executive officer, Kerrie Mather, said the new carrier, a subsidiary of Singapore Airlines, would generate A$146 million (RM455 million) a year for the Sydney economy.
"It will also bring close to 400 passengers to Sydney daily. We've already seen low-cost carriers stimulating markets here and internationally," he added, in a statement.
New South Wales Tourism Minister George Souris said Scoot chose Sydney over strong competition from Victoria and Queensland.
Scoot is promising fares 40 per cent below that of full-service airlines and including taxes and surcharges, but not "ancillary" items such as meals, drinks, entertainment and checked luggage.
Its arrival heralds another player in the already competitive long-haul, low-cost carrier market to Australia, serviced by Jetstar International and AirAsiaX.
It also gives Singapore Airlines, which flies to major Australian airports and is a major stakeholder in Tiger Airways Australia, an additional foothold in the Aussie market. — Bernama