The Future of Tiger?

[LiamR]

Just had a thought…

Has Tiger Airways ever made a profit in Australia? Without looking it up, I don’t think they have.
This leads to a thought. With CASA suspending their AOC (Air Operators Certificate), do you think Tiger will be around for much longer? Having such a PR disaster, will cause a lack of faith with the general public. Particularly when it comes to safety concerns, people would much rather pay a little bit more for the safety of Jetstar.

Sure, Tiger could do a big re-launch. The CEO could come out and say we are fixing things, hiring 500 more pilots, fixing planes, hiring more safety folk and tell us that the problem is solved. But if they’ve struggled to make a profit in the past, would it really be worth it? Since Tiger is based out of Singapore, it could be just as easy to transfer all the aircraft back to its parent airline. (Not sure of the condition, but maybe Jetstar could have their eyes on the A320s)
In my eyes, tiger is a small airline; they operate one OOL/SYD flight per day, and only operate around ten aircraft. (Small, compared to DJ/JQ/QF) However, in the next year or so the grounds in which airlines compete is changing.
Let me explain…

Virgin are going upmarket…. Although they “Are still offering great fares all year around” they have moved away from the LCC business and are moving to a premium market.

That leaves Jetstar and Tiger in the Low Cost Carrier market. If Tiger were to disappear, this would leave Jetstar alone with the Low Cost Carrier market. (Some would argue DJ is still part of this)

IF Tiger were to leave, and JQ had the majority of LCC to themselves, would they stay honest, keep fares competitive? Maybe move upmarket and take on DJ? Who knows.

No matter what happens, it is going to be a very interesting 12 months in the aviation industry. *Sits back and grabs popcorn*

What does everybody else think?

Liam.

 

[ejb]

I think they will survive with very few changes. They will satisfy CASA during the week, change a couple of procedures and move on.

I think they have the "bigger picture" in mind asside from profits, and that is why they operate in Australia.

O/T for a moment but can we stop referring to popcorn! I can't eat it anymore:evil: and hate being reminded about it. (rant over, continue people)

ejb

 

[Mal]

I think they'll bounce back. This week will be one of VERY deep thought (and I don't think they'll appeal the decision). They'll work out what they need to do to satisfy CASA, then get back up in the air.

Now, this could change if the cost is too high, or the time takes too long. While the Singaporean masters have deep pockets, I'm not sure just how deep they will be willing to dig. The whole game play as to why Tiger was in Australia (apart from feeder flights to their Intl operations) hasn't really been clear to me. So the future plans for the airline (US/NZ route perhaps?) will also come into play.

Interesting that TT International flights are still running. Hmm, one does wonder what is different standards wise with them!!

 

[TheInsider]

/Interesting that TT International flights are still running. Hmm, one does wonder what is different standards wise with them!!

Because that is based in Singapore and not a part of the domestic operations (Tiger Australia)?

 

[dk4]

This week will be one of VERY deep thought (and I don't think they'll appeal the decision). They'll work out what they need to do to satisfy CASA, then…

…cost it and decide.

While the Singaporean masters have deep pockets, I'm not sure just how deep they will be willing to dig.

I doubt SQ will put one more cent into Tiger, they have already announced plans for a wholly owned SIN-based LCC subsidiary, which tends to indicate that they are not happy with their strategic investment in Tiger. (SQ has also announced a tentative new Australian tactic aligning itself with VAA.)

The whole game play as to why Tiger was in Australia (apart from feeder flights to their Intl operations) hasn't really been clear to me.

Probably because deregulation did not happen as quickly as expected in South East Asia, and Tiger had ordered the planes so had to fly them somewhere. Incheon Tiger (Korea) was the closest they came to another offshoot, but it failed to get off the ground. Tiger also failed with its feeder flight idea in Darwin, and cancelled its domestic/international connection hub there. It also abandoned its Adelaide hub strategy.

Interesting that TT International flights are still running. Hmm, one does wonder what is different standards wise with them!!

Remember that TT is a different airline to TR, just as JQ, 3K, BL & VL are all separate airlines, as far as regulators are concerned, regardless of some common management, marketing, systems & ownership (although TT is 100% owned by TR).

 

[Mal]

…cost it and decide.

I doubt SQ will put one more cent into Tiger, they have already announced plans for a wholly owned SIN-based LCC subsidiary, which tends to indicate that they are not happy with their strategic investment in Tiger. (SQ has also announced a tentative new Australian tactic aligning itself with VAA.)

Probably because deregulation did not happen as quickly as expected in South East Asia, and Tiger had ordered the planes so had to fly them somewhere. Incheon Tiger (Korea) was the closest they came to another offshoot, but it failed to get off the ground. Tiger also failed with its feeder flight idea in Darwin, and cancelled its domestic/international connection hub there. It also abandoned its Adelaide hub strategy.

Remember that TT is a different airline to TR, just as JQ, 3K, BL & VL are all separate airlines, as far as regulators are concerned, regardless of some common management, marketing, systems & ownership (although TT is 100% owned by TR).

Yep, good points. Will be interesting to see how it pans out. While I really don't like TT, it does serve a purpose in the Australian airline market.

BTW, when I was referring to TR and differences standards wise, I was actually meaning "Surely some of their maint was done in Australia, and TT would have followed the parent's guidelines when it comes to some things like crew management. So does make you wonder how safe those flights are!!"

 

[pauly7]

There were some rumours floating around that DJ would take over Tiger Aus as a part of their deal with Singapore....

Wonder if that was ever seriously on the table and if this disaster has changed anything....

Makes a bit of sense though: DJ and Tiger v Jetstar and QF....

 

[concorde71]

I have never flown them, and never had any desire. I do however, hope they get their **** together (Unlikely I know), as the end result will be higher airfares all round in Aus. You think Jetstar is going to offer dirt cheap fares when there is no competition.... Nah I dont either

 

[TheInsider]

Well it seems like the Singapore Airlines connection with Virgin Australia has made a showing in the Tiger grounding!

Tiger Airways turns to Virgin Australia to carry its shame | Plane Talking

 

[TheStudent]

I think this will be the beginning of the end for Tiger. The PR damage has been way too high, for a company that has, at its best, only broken even in the Australian market to the best of my knowledge.

As for JQ increasing its fare prices - I guess it will depend where the money is, I imagine there is a place for a LCC to operate in the Australian market and turn a bigger profit then it could if it was a premium airline. There may be some increase in fares, but unlikely to be anything huge, in my humble opinion.

 

[concorde71]

Just throwing it out there, STRATEGIC AIRLINES...... They have ambitions, and this could be the opportunity they have been waiting for.
However, Tiger do have no shame, so may just continue where they left off, and if they are allowed to fly again, much of the same.
I must admit, I was looking forward to the next TV series of bogan flyers

 

[ozbeachbabe]

Just had a thought…

Has Tiger Airways ever made a profit in Australia? Without looking it up, I don’t think they have.
This leads to a thought. With CASA suspending their AOC (Air Operators Certificate), do you think Tiger will be around for much longer? Having such a PR disaster, will cause a lack of faith with the general public. Particularly when it comes to safety concerns, people would much rather pay a little bit more for the safety of Jetstar.

Sure, Tiger could do a big re-launch. The CEO could come out and say we are fixing things, hiring 500 more pilots, fixing planes, hiring more safety folk and tell us that the problem is solved. But if they’ve struggled to make a profit in the past, would it really be worth it? Since Tiger is based out of Singapore, it could be just as easy to transfer all the aircraft back to its parent airline. (Not sure of the condition, but maybe Jetstar could have their eyes on the A320s)
In my eyes, tiger is a small airline; they operate one OOL/SYD flight per day, and only operate around ten aircraft. (Small, compared to DJ/JQ/QF) However, in the next year or so the grounds in which airlines compete is changing.
Let me explain…

Virgin are going upmarket…. Although they “Are still offering great fares all year around” they have moved away from the LCC business and are moving to a premium market.

That leaves Jetstar and Tiger in the Low Cost Carrier market. If Tiger were to disappear, this would leave Jetstar alone with the Low Cost Carrier market. (Some would argue DJ is still part of this)

IF Tiger were to leave, and JQ had the majority of LCC to themselves, would they stay honest, keep fares competitive? Maybe move upmarket and take on DJ? Who knows.

No matter what happens, it is going to be a very interesting 12 months in the aviation industry. *Sits back and grabs popcorn*

What does everybody else think?

Liam.

Personally, when it comes to safety concerns I would be prepared to pay a little more for the safety of QF or DJ - not JQ!

The expression 'rearranging deckchairs on the Titanic' springs to mind.

 

[LiamR]

Personally, when it comes to safety concerns I would be prepared to pay a little more for the safety of QF or DJ - not JQ!

Neither would I! But, the vast majority of bogans would.

 

[markis10]

Just throwing it out there, STRATEGIC AIRLINES...... They have ambitions, and this could be the opportunity they have been waiting for.
However, Tiger do have no shame, so may just continue where they left off, and if they are allowed to fly again, much of the same.
I must admit, I was looking forward to the next TV series of bogan flyers

Strategic need to get more strategic about their long haul widebody fleet in order to prevent telling their customer to coughet for a week:

Strategic Airlines | Passengers left stranded in coughet

Tigers assets are not going to help them.

 

[drron]

Should have been another box to tick-Who cares.
Never flown with TT,never will.
Most of the people who fly TT will have forgotten this in 2 weeks or never heard of it in the first place.

 

[harvyk]

Most of the people who fly TT will have forgotten this in 2 weeks or never heard of it in the first place.

So very very true...
TT's pax are there because it is a cost effective way to get from A to B, nothing more...

 

[serfty]

I hope they hang around - it will keep other fares down.

 

[oz_mark]

I hope they hang around - it will keep other fares down.

Can't see them going away - although some of their senior people may soon find themselves in the unemployment lines. Internal restructure, sort of some of the processes and procedures and move on.

 

[Simo]

This might not stop Tiger now but I believe it erode public faith in the airline even more than it all ready is.Tiger will probably have a reduction in new bookings so this will cause them to cancel more routes leading to the failure of the airline.I would no fly tiger under any circumstances even before this.I want to fly when I book to fly.

 

[Mal]

This might not stop Tiger now but I believe it erode public faith in the airline even more than it all ready is.Tiger will probably have a reduction in new bookings so this will cause them to cancel more routes leading to the failure of the airline.I would no fly tiger under any circumstances even before this.I want to fly when I book to fly.

For me, I really don't want to fly Tiger, and have avoided them. For you, I presume it's a similar case.

However, don't underestimate the ability for $ to over-rule sense. Take Garuda as a perfect example - did that stop people booking tickets on the flight?

Price a product cheap enough and reel in the price sensitive (but rather naive) customers...