The Singapore-based carrier, which is part owned by Ryanair, expects to be operating in Australia by the end of the year after initiating talks with the Australian government.

Tiger Airways is expected to compete with no-frills carriers Jetstar and Virgin Blue on domestic routes.

Tiger chief executive Tony Davis said he was optimistic that a licence to operate in Australia would be granted.

"They agree that competition is good for consumers and that additional air services, particularly with the affordable fares that Tiger will be bringing into the market, will help stimulate tourism, both domestic and international, " he said.

"We need to go through the proper process with the federal government and the regulatory authorities to make sure we get the licence issued as quickly as we can. We expect to start service later this year, with five new Airbus A320s as soon as we complete the process."

Ryanair, the Singapore Government, an American private equity group, and Singapore Airlines make up the consortium behind Tiger.