Tiger Airways

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Tiger Airways Private Limited

IATA TR	ICAO TGW	Callsign GO CAT
Founded		December 2003
Hubs		Singapore Changi Airport
Fleet size		8 (+60 orders)
Destinations		19
Parent company		Tiger Aviation^[1]
Company slogan		Get The Real Deal
Headquarters		Singapore
Key people		Tony Davis (CEO)
Website: http://www.tigerairways.com

Tiger Airways Private Limited is a low-cost airline based in Singapore, with its primary hub at Singapore Changi Airport. Incorporated in September 2003, it is currently the largest low-cost airline operating out of Singapore in terms of passengers carried. In 2006, the airline flew 1.2 million passengers, a growth of 75% from the previous year.^[2]

The airline was the first to operate from the Budget Terminal in Changi Airport in order to achieve operating-cost savings^[3] and its cost structure is modelled after Ryanair. Despite regional competition, the airline has reiterated its current intention to remain focused on flying within a five-hour radius from its Singaporean base.^[4] To overcome regulatory hurdles in the region, the airline attempts to buy into regional carriers to expand into a pan-Asian carrier.^[5]

Flights to India started in October 2007, and expansion to Malaysia is planned.^[6] ^[7] Former plans to establish a hub in Manila (Clark) have been suspended.

1 History
- 1.1 Tiger Airways Australia
- 1.2 Incheon Tiger Airways
2 Corporate management
3 Destinations
4 Fleet
- 4.1 Current fleet by aircraft size
5 In-flight
- 5.1 Food and Beverage Options
- 5.2 In-flight Entertainment
6 References
7 External links

[edit] History

The airline was incorporated on December 12, 2003, and began ticket sales on August 31, 2004. The airline flew into a period of relative difficulty for the aviation industry with rising oil prices and intense competition from other airlines. The airline held off imposing fuel surcharges as its competitors have done.

With Singapore Airlines having a stake in the airline, it is noted that the airline occasionally fills in the gap when SIA drops its services from certain destinations. Macau, once served by SIA before being taken up by its subsidiary SilkAir in 2002, terminated all flights completely by the end of 2004. Three months later, the route was taken over by Tiger Airways with flights commencing 25 March 2005. A similar pattern can be observed in Krabi, where SilkAir suspended services in February 2005 in the wake of the effects of the 2004 Indian Ocean earthquake. Tiger Airways resumed direct services to the location from 7 October 2005.

In late July 2005, it was announced that the airline would commence flights from Macau to Manila (Clark) on October 30, 2005, a much-heralded move as it may signal the establishment of a secondary base besides Singapore, allowing the airline to expand and diversify risks.

On September 21, 2005, the company produced a report card on its first year of operations, with a total of over 500,000 passengers carried, 5000 scheduled flights flown, and a flight completion rate of 98.7%. 94% of flight departures and 90% of arrivals took place according to schedule. It acquired four aircraft and launched a total of nine routes (of which four are flown exclusively by the airline) during the year.

The airline expects to increase its fleet to nine Airbus A320 aircraft by end 2006, and to carry up to 3 million passengers a year by then. It also hopes to add six more routes during the year, mostly to destinations in China and India,^[8] with flights to Southern China having commenced April. The airline also announced its switch from Singapore Airport Terminal Services to Swissport for ground handling when it becomes the first airline to operate at the newly-opened Budget Terminal in Changi Airport on 26 March 2006.

Tiger Airways became the first Singaporean low-cost carrier to receive operating permits from the Chinese aviation authorities to fly to the southern Chinese cities of Haikou, Guangzhou and Shenzhen in an announcement on February 21, 2006. Ticket sales to these destinations commenced on 24 February 2006, with the first flight to Shenzhen taking place on 15 April, to Haikou from 26 April and to Guangzhou from 27 April 2006. The airline has since indicated that the routes were highly popular, with increased flights to Haikou and Guangzhou less than three months since their launch.^[9]

In June 2006, flights to Danang were suspended. On 20 July 2006, the media reported on the airline's intentions to increase its routes from 15 to 20 and to establish a second base city by the end of the year. Possible growth regions include China, Southern India, Cambodia and Brunei.^[10] The airline's plans for a possible initial public offering was also revealed. At the same time, it announced that it saw an increase of 81% in passengers carried in the months of April to June since its move to the Budget Terminal in March, compared to the same period in the previous year.

A planned tie-up with South East Asian Airlines^[11] lapsed in mid 2007.

Tiger started services from Singapore to Perth on March 23, 2007.

[edit] Tiger Airways Australia

Main article: Tiger Airways Australia

On 9 February 2007, Tiger Airways formally announced that it hoped to become Australia's third full-scale domestic airline, competing directly with Virgin Blue and Qantas/Jetstar.^[12] Tiger Airways Australia will use their Australian domestic network to support an expanded international presence with the current gateways of Darwin and Perth, expanded to include Melbourne. On 16 March 2007, the airline received approval from Australian authorities to establish the new subsidiary,^[13] and established Tiger Airways Australia Pty Ltd on the same day.^[14] Tiger Airways Australia began operations on November 23, 2007, and its current route network already spans across every state and territory in the country.

[edit] Incheon Tiger Airways

Main article: Incheon Tiger Airways

On 5 November 2007, Tiger Airways announced that it would be starting a Korean-based budget airline. It will be a joint venture between Tiger Aviation and Incheon Metropolitan City, flying to destinations in Japan, China, Mongolia and the Russian Far East. The airline will be based in Seoul's Incheon Airport and hopes to begin services by next year.

[edit] Corporate management

Tiger Airways is 100% owned by Tiger Aviation, a holding company set up in 2007 to manage both Tiger Airways and start-up Australian subsidiary Tiger Airways Australia.

The airline plans to study the possibility of an Initial Public Offering by the end of 2007.^[15]

The airline has reported losses in every financial year since its founding, although it may report its first profit in the year ending 31 March 2008^[16]. It reported a loss of S$37.4 million (turnover at S$75 million) in the year ending 31 March 2006 and S$14.3 million (turnover S$171.2 million) in the year ending 31 March 2007. Profitability was recorded in the first three quarters of the current financial year, with a S$1 million profit in the third quarter ending 30 September 2007.

[edit] Destinations

Main article: Tiger Airways destinations

Tiger Airways currently flies to destinations within an approximate five-hour radius around Singapore to 19 destinations in eight countries around the region. Thailand is its first and biggest market, with four cities served, taking advantage of the open-skies agreement between Singapore and Thailand. Current aviation agreements has prevented the airline from flying to neighbouring Malaysia except Kuala Lumpur (starting Feb 2008), although in September 2006, it was granted rights to fly to Kuching, Miri and Sibu in a bid to boost tourism in Sarawak.^[17]

Future plans include:

Increase the number of planes to 20 by 2010.^[18]
Singapore -Bandar Seri Begawan, Singapore -Pontianak, Singapore -Kuching, Singapore-Sibu, Singapore-Miri^{[citation needed]}
Tiger Airways plans to deliver more domestic Australian routes, competing with Qantas, Jetstar, Virgin Blue and other regional airliners. It recognised this gap in the market for truly cheap fares as Virgin Blue, also a LCC, has improved its services for business travellers, as well as opening lounges and introducing a frequent flyer scheme and therefore is operating a dearer business model^{[citation needed]}.
Tiger Airways has gained approval from Indian authorities to start flying to four more cities in India (Goa, Trivandrum, Kolkata and Kozhikode), and has started flights to Chennai and Bangalore.
Tiger Airways is seeking to set up a hub in Seoul at Incheon International Airport. However, current bilateral agreements only allow Korea's 2 major carriers, Asiana Airlines and Korean Air to fly international routes. That airline will be called Incheon Tiger Airways with Tiger Airways owning 49% of the airline and the city of Incheon holding the other 51% stake (any Korean-based airline has to be majority Korean-owned).^[19]

[edit] Fleet

Tiger Airways Australia Airbus A320-200 at the Melbourne Airport

The airline operates a single-model fleet consisting of the Airbus A320-200 aircraft powered by V2500 International Aero Engines. All aircraft offer single-class economy seating for 180 seats each.

The first aircraft order comprised four aircraft, commencing operations with two aircraft before the remaining four were delivered in January 2005.^[20] A second order for an additional eight to be delivered between March 2006 and 2007^[21] was made in June 2005, with the Royal Bank of Scotland helped finance the four of the aircraft in the second order, worth a total of about US$500 million.^[22]

There are currently nine aircraft in its fleet after the latest delivery of two aircraft in April 2006,^[23] a third on 11 October 2006, a fourth aircraft 9V-TAH on 23 November 2006, and a fifth aircraft 9V-TAI on 14 December 2006. In July 2006, the airline announced its first sale-and-leaseback agreement with GATX Air for two aircraft due for delivery in October 2006 and November 2007 respectively. It also announced its intentions to exercise its options for eight additional aircraft for a total of 20 planes.^[24]

On October 17, 2006, the airline confirmed its purchase options for another eight aircraft to be delivered between 2008 and 2010 in a deal worth S$780 million. The purchase was expected to help the airline enter its next expansion phase.^[25] On 4 January 2007, Tiger announced that it had secured a US$100 million pre-delivery deposits facility from the French bank, BNP Paribas to finance this purchase.

On June 21, 2007, the airline announced it had signed a letter of intent to purchase a further 30 aircraft worth US$2.2 billion, with another 20 on option. These would be delivered between 2011 and 2014.^[26]

On October 10, 2007, the airline confirmed the letter of intent signed in June for the purchase of 30 aircraft with 20 more on option. The aircraft are scheduled to be delivered between 2011 and 2014. The new aircraft will be deployed in Tiger Airways' Asia-Pacific network and the domestic operation in Australia. ^[27]

On December 18, 2007, the airline announced that it had taken up the options and this increased the number of Airbus A320s ordered by the airline to 70.^[28]

On March 6, during a speech to the Australian National Aviation Press Club, Tony Davis said that the airline would take two Airbus A319s to enable it to fly into smaller Australian airports.

[edit] Current fleet by aircraft size

As of 30 May 2008, the Tiger Airways fleet includes the following aircraft^[29]:

**Tiger Airways Fleet (Singapore operations only)**
Aircraft	In fleet	Order	Option	Engine	Seat Configuration	Routes	Notes
Airbus A320-232	8	58	0	IAE V2527-A5	180 (Y180)	Short haul	Not all aircraft ordered will be allocated to Tiger Airways Singapore. They will be deployed among Tiger Aviation Group of subsidiaries, ie Tiger Airways Singapore, Tiger Airways Australia, and Incheon Tiger Airways.
Total	8	58	0

[edit] In-flight

[edit] Food and Beverage Options

Being a low-cost carrier, free food and beverages are not provided. However, food and beverages are available for purchase from the cabin crew. The menu offers light meals such as instant noodles, soups and sandwiches. Hot and cold beverages as well as liquor are also available for purchase.

[edit] In-flight Entertainment

As of December 2007, there is no free In-flight Entertainment provided on board Tiger Airways flights; however, passengers can pay $15 for the use of an in-flight video player which can be used for the duration of that flight. An in-flight magazine, Tiger Tales, is provided as free reading material for passengers.