Ouch! TigerAir Losing $2M a Week

Status
Not open for further replies.

Hvr

Enthusiast
Joined
Jun 27, 2007
Messages
10,671
Solutions
4
Points
1,535
Qantas
Platinum
I doubt they're virgins in the airline industry for losing money. ;)
 

amaroo

Enthusiast
Joined
Sep 22, 2011
Messages
13,644
Points
10
Qantas
Platinum 1
A loss of $171K per frame, per week is a big number. If you applied that over the QF group fleet (assuming 335 frames?) the annual loss would be just shy of $3 Billion
 
Last edited:

jetlagger

Established Member
Joined
Sep 19, 2011
Messages
2,271
Points
10
Never envisaged their business model being financially sustainable long term, with the next to nothing air fares constantly being spruiked by Tiger.
 

AdMEL

Established Member
Joined
Feb 14, 2010
Messages
2,066
Points
400
It appears that the airline industry is like the car industry - no way to make money without government support! Since there isn't a great deal of that in Australia, unless something radically changes, profits in airlines will be a thing of the past.

From what I've read, the majority of the world's airlines are unprofitable.
 

anat0l

Enthusiast
Joined
Dec 30, 2006
Messages
11,672
Points
1,175
Is the monetary loss per unit airframe particularly interesting or useful to anyone?

This can't be sitting well on the VA balance sheets, even if only 60% of the loss is attributable. Then again, red accounting seems to be par for course for all of the Australian-owned players in the game at the moment. I'm sure that other bigger competitor is looking at an average monetary loss of greater than $2M/wk.
 

amaroo

Enthusiast
Joined
Sep 22, 2011
Messages
13,644
Points
10
Qantas
Platinum 1
This seems to back up my statement! Just to be clear, I meant US the country, not US Airways.

I worked that bit out.....that's why I posted a link covering a good proportion of large USA airlines.

Can't provide any details on Australia as airlines aren't allowed to restructure here - apart from the majority foreign own ones.
 

eastwest101

Established Member
Joined
Oct 26, 2010
Messages
3,264
Points
720
Qantas
Gold
Virgin
Gold
can you guys fly them a bit more, I need them for my JQ price beat guarantees

I still find it mind-blowingly stupid that they bothered to go through the relaunch and ended up going from Tiger Airways to Tigerair, they knew it was losing money, they knew the brand had the cachet and appeal of a fart in an elevator and it had questions over its previous grounding by CASA yet they took all the pain of a rebrand that did not differentiate it from the previous brand. I still think a proper rebrand and PR blitz with an entirely new name and colour scheme, would have cost a bit, but possibly may have had a better chance to bring the customers in. Keeping TT separate from VA will probably be viewed in hindsight as a reasonably smart move.

At the moment the customers seem to be saying "no way will I ever fly on Tigerair full stop" or "only if they are significantly cheaper than Jetstar" (and even then grudgingly), once the flight time goes up past 1.5 hours or the fare hits 3 digits then a wall of buyer resistance seems to be hit. After all - we are talking about price sensitive low fare and often very discretionary spending here (visiting friends/family, going to football, positioning for status runs etc)
 
Using the S26 Wi-Fi Smart Plug you can easily convert your existing appliances into smart devices to be controlled remotely with your phone.

Takes just minutes to setup!

AFF Supporters can remove this and all advertisements

DalyWaters

Junior Member
Joined
Nov 15, 2009
Messages
34
Points
75
I still find it mind-blowingly stupid that they bothered to go through the relaunch and ended up going from Tiger Airways to Tigerair, they knew it was losing money, they knew the brand had the cachet and appeal of a fart in an elevator and it had questions over its previous grounding by CASA yet they took all the pain of a rebrand that did not differentiate it from the previous brand.

I thought that the best solution for Tiger overall would be a merger and rebranding into the Scoot brand. The parent of Tiger in Asia is Singapore Airlines who, wisely, when they started their new LCC, decided not to use the Tiger name. Rather than going with a slight rename from Tiger to Tigerair, the Scoot name would signify a fresh start and with connecting through fares, would open up a massive market for them. I say this as someone from Melbourne who has caught Tiger to Sydney in order to fly Scoot to Singpaore before. Scoot could then operate two sections, 777 long haul and A320 short haul, similar to Air Asia and Air Asia X.
 

yohy?!

Established Member
Joined
Nov 30, 2009
Messages
4,501
Points
705
Qantas
Silver
I was interested to see the a320 listed in VAs fleet listing without any mention of TT
 

mannej

Senior Member
Joined
Mar 16, 2009
Messages
9,876
Solutions
5
Points
1,000
I was interested to see the a320 listed in VAs fleet listing without any mention of TT

How many are listed? Don't forget that Skywest had a number of A320's in their fleet as well (it was 1 or 2 from memory).
 

pauly7

Senior Member
Joined
Dec 8, 2004
Messages
5,010
Points
870
Keeping TT separate from VA will probably be viewed in hindsight as a reasonably smart move.

At the moment the customers seem to be saying "no way will I ever fly on Tigerair full stop" or "only if they are significantly cheaper than Jetstar" (and even then grudgingly), once the flight time goes up past 1.5 hours or the fare hits 3 digits then a wall of buyer resistance seems to be hit.


Overhead conversation in QF business lounge between an EK pilot and what I assumed to be his son / teenager. Hilarious comment about Jetstar and Tiger (not my views!)

Kid - So who flies Virgin then?
Pilot - People who can't afford Qantas or are forced to fly them for work.
Kid - Jetstar?
Pilot - Bogans
Kid - Tiger
<pause>
Pilot - ummm not sure (gestures to iPad) but they certainly aren't paying for their seats, read this article about tiger....
 
Status
Not open for further replies.
Top