Tiger Airways Australia
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| Tiger Airways Australia Pty Ltd | ||
|---|---|---|
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| IATA TT |
ICAO TGW |
Callsign GO CAT |
| Founded | 16 March 2007 | |
| Commenced operations | 23 November 2007 | |
| Hubs | Melbourne Airport | |
| Fleet size | 4 (+3 orders) | |
| Destinations | 12 | |
| Parent company | Tiger Aviation[1] | |
| Headquarters | Melbourne, Victoria, Australia | |
| Key people | Shelley Roberts (Managing Director) Tony Davis (CEO, Tiger Aviation) Ken Broomhead (Chief Pilot) |
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| Website: www.tigerairways.com.au | ||
Tiger Airways Australia Pty Ltd is a low cost airline which commenced services in the Australian domestic airline market on 23 November 2007. It is a subsidiary of Tiger Aviation, a Singapore based company, which is owned in part by Singapore Airlines. The airline is based in Melbourne, Victoria, Australia with its main hub at Melbourne Airport.
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[edit] History
Australian government policy and legislation currently permits airlines that are 100% foreign owned to operate domestic airline services within the country[2]. The change in regulation originally applied only to New Zealand owned airlines in 1996[3], but were later relaxed, resulting in the establishment of Virgin Blue. Australian international airlines are still subject to ownership rules limiting foreign ownership to 49%.[4]
The Australian Foreign Investment Review Board approved the airline to establish its wholly-owned Australian subsidiary in March, 2007 and did not place any special conditions on its approval.[5] Subsequently, on Friday, 16 March 2007, Tiger Airways Australia Pty Limited was incorporated in the Northern Territory[6], although the company itself is based in Melbourne, with Melbourne Airport being the airline's major hub.[7] AUD$10 million and 5 aircraft have been committed to start the subsidiary[8][9]. The airline's business model is based on that of sister airline Tiger Airways, which attempts to increase the total market size (number of passengers), control operating costs of the airline, and maximise the number of sectors served by its aircraft. [10] It will keep cost low by avoiding expensive airports. [11]
Tiger undertook the final stage of Australian regulatory procedures on November 20, 2007, performing two proving flights from Melbourne to the Sunshine Coast and Launceston respectively. Each carried officials from the Civil Aviation Safety Authority as well as Tiger crew. Tiger successfully completed these flights, and received their Air Operator's Certificate on Thursday November 22, becoming one of only two Australian airlines to earn the certificate on their first attempt, following charter airline OzJet. Tiger's first flight took off from Melbourne Airport on November 23 at 07:18.
The aircraft used by Tiger Airways Australia has the same livery as their Singapore sister company. The airline projects traffic of 2 million passengers annually initially.[5]
Tiger Airways Australia's first scheduled flight was TT 7402, departing Melbourne for the Gold Coast, on November 23, 2007 at 7:30am. The first flight to Mackay took off at noon on the same day.[2]
On May 31, 2008, it was announced that passengers would now be charged a fee for check-in luggage. It is a A$5 fee at booking but if paid at check-in, it increases to A$20. [12]
[edit] Ownership
Tiger Airways Australia is wholly owned by holding company Tiger Aviation, which itself is owned by:
- Singapore Airlines Limited (49%)
- Indigo Partners LLC, the investment firm founded by Bill Franke (24%)
- Irelandia Investments Limited, the private investment arm of Tony Ryan (of Ryanair) and his family (16%)
- Temasek Holdings Pte Ltd (11%) [10]
Shares of Tiger Airways Australia Pty Ltd are not publicly traded.
[edit] Routes and Announcements
| City | Airport | Announced | Commenced | Frequency | Remarks |
|---|---|---|---|---|---|
| Tiger Airways Australia Announcements and Routes | |||||
 Australia |
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| All Tiger Airways Australia flights depart from/arrive at their main hub | |||||
.svg/22px-Flag_of_Victoria_(Australia).svg.png){kind=small} Victoria |
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| Melbourne | Melbourne Airport | 3 May 2007 (Melbourne chosen as hub) |
23 November 2007 | 105 return flights weekly | Main hub |
| Destinations | |||||
 Australian Capital Territory |
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| Canberra | Canberra International Airport | 29 October 2007 | 14 February 2008 | 14 return flights weekly | Twice daily return flights |
 New South Wales |
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| Newcastle | Newcastle Airport | 29 October 2007 | 18 January 2008 | 7 return flights weekly | Daily return flight (ends August 11, 2008 [13]) |
 Northern Territory |
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| Alice Springs | Alice Springs Airport | 11 July 2007 | 1 March 2008 | 3 return flights weekly | Return flights Tuesday, Thursday, Saturday Launch originally on 1 December 2007, delayed due to ground services dispute with Qantas |
| Darwin | Darwin Airport | 28 June 2007 | 1 December 2007 | 7 return flights weekly | Daily return flight Connection offered to Singapore via Tiger Airways Singapore |
 Queensland |
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| Gold Coast | Gold Coast Airport | 7 July 2007 | 23 November 2007 | 21 return flights weekly | Thrice daily return flight |
| Mackay | Mackay Airport | 9 July 2007 | 23 November 2007 | 4 return flights weekly | Return flights Monday, Wednesday, Friday, Sunday |
| Rockhampton | Rockhampton Airport | 9 July 2007 | 23 November 2007 | 4 return flights weekly | Return flights Monday, Wednesday, Friday, Sunday |
| Sunshine Coast | Sunshine Coast Airport | 25 July 2007 | 27 November 2007 | 3 return flights weekly | Return flights Tuesday, Thursday, Saturday |
 South Australia |
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| Adelaide | Adelaide Airport | 13 November 2007 | 10 January 2008 | 21 return flights weekly | Thrice daily return flights |
 Tasmania |
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| Hobart | Hobart International Airport | 29 October 2007 | 15 January 2008 | 7 return flights weekly | Daily return flight Added due to high sales on Launceston route |
| Launceston | Launceston Airport | 16 July 2007 | 29 November 2007 | 7 return flights weekly | Daily return flight |
 Western Australia |
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| Perth | Perth Airport | 11 July 2007 | 1 December 2007 | 7 return flights weekly | Daily return flight |
[edit] Competitors' reactions
The impending arrival of Tiger Airways Australia in the market has resulted in varied responses from its primary competitors, mainly Qantas (and its subsidiary Jetstar) and Virgin Blue. Jetstar, in particular, has been particularly vocal, with its chief executive Alan Joyce quoted as saying "Tiger and what they have done have come across as a joke, and will probably continue that way".[14] He further claimed that Tiger was losing over SGD$60 million over the past two years of operations out of Singapore.[15]
Air fares began to drop, as special offers and other promotions were launched, such as Jetstar's announcement that it will "double the difference of any competitor's fare that is cheaper than" its own fares.[16] This was soon followed by a bonus system to entice its customers to stay with the airline.[17] Jetstar immediately matched Tiger's Melbourne to Darwin fare upon announcement.
Tiger Airways Australia had previously been quoted as planning to offer "single digit" one-way fares when it begins service. The announcement of AUD$79.99 flights from Melbourne to Darwin was met with criticism from Jetstar.[18]
When Tiger released their first route, Melbourne - Darwin, at a price of AUD$79.99, Jetstar immediately undercut the price, offering sale fares at AUD$79 on the same route over the same period. Similarly, when Tiger released their second route, Melbourne - Gold Coast, at a price of AUD$49.95, Jetstar again undercut the price, offering AUD$39 fares on the route over the same period. Most recently, on July 8, Jetstar offered 10,000 fares on selected routes for AUD$1. In response to Tiger's announcement of Melbourne - Launceston flights, priced at AUD$39.95, Jetstar offered AUD$29 flights over the same period, save a holiday blackout. On 29th October Tiger announced $9.95 one way fares to 75% of its destinations[3], in which Jetstar responded only with $9 to 3 similar routes, with very heavy blackouts.
Virgin Blue, however, has yet to respond to Tiger in any significant way.
All three Australian incumbents have since announced new flights or increased capacity on existing ones. Jetstar announced new Sydney-Brisbane flights to commence in December, and increased flights to the Gold Coast[19]They have also announced the purchase of Airbus A321 aircraft which will be used to increase capacity on key Queensland routes where Jetstar are being challenged by Tiger. Virgin Blue considered the possibility of establishing a low-cost offshoot to fend of Tiger Airways[20], but instead decided to focus the funds on their new trans-Pacific carrier, and on increasing their business travel share by introducing a Premium Economy service. Melbourne Airport announced plans to cut usage fees soon after Tiger's announcement of a hub there, in a bid to increase its share of low-cost traffic.[21] Tiger's mention of New Zealand as a potential market has also raised concerns in that country.[22]
Just days before the launch of Tiger Airways Australia, low cost airline Jetstar offered 5,000 seats on 21 November 2007 for the price of AUD 5c, inclusive of taxes, on seven domestic routes, costing the airline AUD $25.00 per seat. Jetstar claims that the sale has nothing to do with the Tiger's launch, while at the same time referring to them as "competitive". The airline's spokesman, Simon Westaway, was quoted as saying that they "are a good airline in their own right. We are not going head to head. We respect them for the competitor that they are going to be".[4]
On 23 November 2007, the airline publicly slammed Qantas for being unable to provide ground handling services to the airline at Alice Springs, forcing it to delay its launch to the city by three months to 1 March 2008. The airline had promised to pay any cost to Qantas, but services were still denied. Qantas executive general manager John Borghetti responded by saying "assisting competitors is not part of my job description"[5]. Tiger Airways Australia CEO, Tony Davis reminded Qantas that Tiger's parent, Singapore Airlines, provides ground servicing at Singapore Changi Airport for both Qantas and Jetstar, and it wasn't unreasonable for Qantas to provide Tiger the ground staff at Alice Springs Airport.
Tiger commenced service to Adelaide from Melbourne on 10 January 2008. Fares of $9.95 one-way between Melbourne and Adelaide were offered a few days prior to the Adelaide launch.
[edit] Second Hub
Tiger Airways has already expressed interest in starting a second hub in Australia, after the flights from Melbourne achieved a 91% Load Factor on average. It has not singled out any single destination, but they have previously expressed that they will stay clear of airports with high fees, such as Sydney Airport and Brisbane Airport. [23] Speculation has now arisen that Tiger Airways Australia may choose the Gold Coast as its second hub. [24]
[edit] Fleet
As of 1 June 2008, the Tiger Airways Australia fleet includes the following aircraft[25]:
| Aircraft | In fleet | Order | Option | Engine | Seat Configuration | Routes | Notes |
|---|---|---|---|---|---|---|---|
| Airbus A319-132 | 0 | 2 | 0 | IAE V2524-A5 | 144 (144Y) | Domestic - Regional | |
| Airbus A320-232 | 4 | 1 | 0 | IAE V2527-A5 | 180 (Y180) | Domestic | |
| Total | 4 | 3 | 0 |
In March 2008, Tiger announced plans to lease two Airbus A319 aircraft for the Australian operation. The new planes will be configured with 144 seats, and will enable Tiger to operate to more destinations where runway lengths do not permit A320 operations. Tamworth has already been mentioned as a potential destination for the new planes.[26] The two A319s will be delivered by the end of 2008. [27]
Its CEO noted that they intend to let the Australian based airline to "grow as big as demand allows it to grow" which, based on their current statements, has been projected to be up to 30 aircraft.[5] Tiger Airways currently operates Airbus A320 aircraft with International Aero Engines V2500 engines and seating for 180 passengers[10]. Tiger Australia's first 5 aircraft will follow these specifications, being former Tiger Airways Singapore planes, although there has been no announcement from management whether future orders for Tiger Airways Australia will match these specifications.
[edit] See also
[edit] References
- ^ "Tiger Airways restructures it business for regional expansion", Channel NewsAsia, 10 September 2007.
- ^ Kain, John and Webb, Richard (2003-06-16). "Turbulent Times:Australian Airline Industry Issues 2003". Research Paper no. 10 2002-03. . Economics, Commerce and Industrial Relations Group Retrieved on 2007-08-02.
- ^ Agreement between the Government of Australia and the Government of New Zealand relating to Air Services. Joint Standing Committee on Treaties (2002-10-21). Retrieved on 2007-08-03.
- ^ Air Navigation Act 1920 - Sect 11A. Australasian Legal Information Institute. Retrieved on 2007-08-03.
- ^ a b c Creedy, Steve. "Growing Tiger gets its stripes", The Australian, 2007-03-16. Retrieved on 2007-08-02.
- ^ "Tiger Airways sets up Aussie subsidiary", Sydney Morning Herald, 2007-03-19. Retrieved on 2007-08-02.
- ^ Northern Territory Government (2007-03-19). "Tiger Airways Australia Incorporation In The Territory". Press release. Retrieved on 2007-08-03.
- ^ "Tiger Airways to bring Ryanair model to Australia", Channel NewsAsia, 2007-02-11. Retrieved on 2007-08-03.
- ^ http://www.chron.com/disp/story.mpl/ap/fn/4770512.html
- ^ a b c Facts Sheet. Tiger Airways. Retrieved on 2007-08-03.
- ^ Tiger vows to shun high-cost airports
- ^ http://www.aviationrecord.com/search-results.aspx?articleType=ArticleView&articleId=507
- ^ http://www.aviationrecord.com/search-results.aspx?articleType=ArticleView&articleId=590
- ^ Rochfort, Scott. "Jetstar delivers Singapore sling", The Sydney Morning Herald, 2007-06-23. Retrieved on 2007-08-03.
- ^ Carwell, Andrew. "Singapore carrier losing millions: Jetstar", The Daily Telegraph. Retrieved on 2007-08-03.
- ^ Murphy, Mathew. "Hold that Tiger: Jetstar set to pounce", The Age, 2007-05-29. Retrieved on 2007-08-03.
- ^ Easdown, Geoff. "Air wars: taking tiger by tail", Herald Sun, 2007-05-29. Retrieved on 2007-08-03.
- ^ Rochfort, Scott. "Tiger to tear up Aussie air market", Sydney Morning Herald, 2007-02-09. Retrieved on 2007-08-03.
- ^ Easdown, Geoff. "Jetstar keen to fill skies", Herald Sun, 2007-06-22. Retrieved on 2007-08-03.
- ^ Ali Moore speaks to Virgin Blue boss. Australian Broadcasting Corporation (2007-02-20). Retrieved on 2007-08-03.
- ^ Newman, Geoffrey. "Melbourne to cut air fees as Tiger takes off", The Australian. Retrieved on 2007-08-03.
- ^ John, Danny. "PEP's Flight plan gets an upgrade", The Sydney Morning Herald, 2007-06-26. Retrieved on 2007-08-03.
- ^ [1]
- ^ Eye of the Tiger on Gold Coast base - Queensland - BrisbaneTimes
- ^ Australia Civil Aircraft Register
- ^ Tiger Airways expanding Australian capacity by 65% in 2008. Two A319s to join fleet.
- ^ http://www.tigerairways.com.au/news/20080307_Tiger_Airways_expands.pdf
[edit] External links
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