Tiger Airways to launch in the Australian Market.

d1-3508 · **on:** February 10, 2007, 01:42:59 am

Quote

Tiger Airways to launch new Australian airline

SYDNEY: Singapore's Tiger Airways plans to launch a new domestic Australian airline to compete with local carriers Qantas Airways Ltd and Virgin Blue Holdings Ltd.

Tiger Airways, a low fare airline partly owned by Singapore Airlines, said yesterday it was seeking regulatory approval to establish a third domestic airline and met with Australian government ministers this week.

The carrier models itself on Irish nofrills carrier Ryanair with a strategy of undercutting rival airlines with cheaper fares.

“Fares are too high in Australia. We see the opportunity to deliver consistently low fares on all our routes,” chief executive Tony Davis said in a statement.

Tiger wants to compete directly with Qantas' low-cost subsidiary Jetstar which was launched in 2004 to challenge Richard Branson's Australian venture Virgin Blue.

Qantas is the subject of an US$8.7bil buyout bid from a consortium led by Macquarie Bank Ltd and Texas Pacific Group.

The Australian aviation market has traditionally been only able to accommodate two or three carriers. Qantas' biggest rival Ansett collapsed in 2001, paving the way for Virgin to boost its share of the domestic market.

Tiger Airways already flies from Darwin to Singapore and will introduce a service between Singapore and Perth next month.

Tiger Airways started flights in September 2004 and has nine Airbus A320 aircraft flying from Singapore to 16 cities in Asia. It carried more than two million passengers last year.

State-controlled Singapore Air holds 49% of Tiger, while Singapore state investment firm Temasek has 11%.

Its remaining two shareholders are Indigo Partners, an investment firm founded by former America West chief Bill Franke, with 24%, and Ryanair founder Tony Ryan with 16%. – Reuters

(Taken from http://biz.thestar.com.my/news/story.asp?file=/2007/2/10/business/16840253&sec=business )

My problem with this, is that IF Tiger Airways tries to fly MEL-SYD, then the market will become over saturated.

StephenM · **Reply #1 on:** February 10, 2007, 10:58:25 am

There are only 2 domestic carriers in Australia? It may look like oversaturation, but in the case of my local airport (Ireland West Airport Knock - NOC) to London, last summer there were 4 flights daily, both EZY & RYR were in competition on NOC-LGW and the supply created its own demand due to very low fares. You never know, you might find the demand appears but also disappears if the market balances out after a while.

d1-3508 · **Reply #2 on:** February 10, 2007, 11:23:14 pm

Nope, there are offically 3, but Jetstar is a "LCC Off-shoot" of Qantas.

So far, Australia's major airlines have been:
Virgin Blue
Jetstar (LCC Off-shoot of Qantas)
Qantas
Australian (bought by Qantas)
TAA (bought by Qantas)
Ansett/Ansett-ANA/ANA (defunct)
Impulse (bought by Qantas)
Ozjet (defunct)
Plus many other small carriers.

There ain't much compition in Australia.

Also, the rate of flights at the moment, flying MEL-SYD or v.v is 4 per hour. Once Tiger gets involved, that rate could go to something like 10-15.

EXTspotter · **Reply #3 on:** February 16, 2007, 06:43:45 pm

Ozjet wasn't major. 1 737-200ADV from European Aircharter with an all-cow interior isn't enough to be called a major. They only operated for a few months anyway.

d1-3508 · **Reply #4 on:** February 17, 2007, 04:07:33 am

Actually, they had 3 B732ADV's. And they (Ozjet) were pretty expensive ($199 MEL-SYD!)

EXTspotter · **Reply #5 on:** February 19, 2007, 08:06:46 am

They still made stupidly high losses and folded after only a few months.

d1-3508 · **Reply #6 on:** February 20, 2007, 12:33:23 am

Exactly. (It was only a month they ran for!)

Australian Air · **Reply #7 on:** March 20, 2007, 10:09:49 am

If you ask me their was no need for a All Business Class Airline in Aus anyway!

d1-3508 · **Reply #8 on:** March 20, 2007, 10:26:16 am

Uhhh, I didn't.

Australian Air · **Reply #9 on:** March 20, 2007, 10:27:57 am

Well if read closely there is two little latters that say IF.

tomauer · **Reply #10 on:** March 21, 2007, 05:54:25 am

well, the aussie markets going strong, As a passenger, i would not mind flying from brisbane to Singapore (stop-over of course [darwin] , unless they have some super A320) anyway, Cheap flights to all of asia's hotspots. Thailand, Vietnam, Philippines, Malaysia etc.. that would be great

d1-3508 · **Reply #11 on:** March 21, 2007, 06:17:45 am

That's what JQ's for.

tomauer · **Reply #12 on:** March 21, 2007, 09:00:13 pm

hahha you got me there.

Although they don't fly to The Philippines, and as much smaller destinations.. but yeah, your right..

I flew Tiger Airways to Manila-Clark (CRK) .. well, it sure is a budjet airline, and the seats are first in first served, and i swear they turn the air-con up colder so you buy the blankets for $3.00!!