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Tiger Airways Australia to hub at MEL

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Keith009

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Fares to fall as city sinks its claws into Tiger

Fares to fall as city sinks its claws into Tiger

Mathew Murphy
May 3, 2007



MELBOURNE will become the Australian home of budget carrier Tiger Airways, in a decision set to create hundreds of Victorian jobs and spark a price war.


The Singapore Airlines-backed carrier will today announce plans to establish its headquarters at Tullamarine. Avalon Airport is believed to have been overlooked because of its distance from the CBD.



...
 

oz_mark

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I am not surprised by this, as it does provide a good place to launch an LCC from.
 

JohnK

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No problem, as long as the airport is in Melbourne and not Geelong!
 

serfty

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JohnK said:
No problem, as long as the airport is in Melbourne and not Geelong!
For us Mexicans, Melbourne is Melbourne, Tullamarine is NNE of Melbourne and Avalon is WSW of Melbourne.

Tiger will be using MEL as it's hub, AVV got the flick. (Make sense really, much easier connection possibilities at Tullamarine.)
 

moa999

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Still gives JQ a major cost advantage on the SYD-MEL (generally) route given the cost differentials between MEL and AVV.

On the bus route didn't think AVV was that much further out, I mean MEL is a long way from the CBD
 

dajop

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Great ... more congestion! More demand for parking, more increases in parking fees!

Good news for air travellers, and particularly fantastic for the VFR (visiting friends and relatives market), but I am beginning to wonder if low airfares just see the transfer of $$$ from airlines to other sectors in the travel industry as it increases demand (accom, parking etc)!
 

lovetravellingoz

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So...has anyone heard about a launch sale????

I was fortunate to already havea need to fly from Thailand to Singapore when they launched a fly anywhere on their network launch (of new routes) sale of $1 Singpore plus taxes...and grabbed 5 tickets at that price.

It will be good if they have a similar launch deal here...
 

oz_mark

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lovetravellingoz said:
So...has anyone heard about a launch sale????

I was fortunate to already havea need to fly from Thailand to Singapore when they launched a fly anywhere on their network launch (of new routes) sale of $1 Singpore plus taxes...and grabbed 5 tickets at that price.

It will be good if they have a similar launch deal here...
Sale Fares would require some confidence in setting a start date. They would have an internal target, but I guess till they get their AOC they might not be willing to commit publicly to a start date.
 

lovetravellingoz

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True....but something ceratinly stirred JetStar and QANTAS into action.

JetStar really hyped their first sale...with lots of adavance emails etc...for the 8pm start..

But last nights sale started with onlya 90 minute advance email...and the sale was not ready to go at 12pm as said in the email...it took another 15 minutes or so...
 

serfty

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aubs said:
Still gives JQ a major cost advantage on the SYD-MEL (generally) route given the cost differentials between MEL and AVV.

On the bus route didn't think AVV was that much further out, I mean MEL is a long way from the CBD
No advantage for me, AVV is over 100km from my East Bayside home against 60 for MEL.

It takes 1½ hours to get there for me compared to 50 minutes to MEL. The taxi fare is at least $60 more.

As for those coming to Melbourne, It's 22KM the the CBD from MEL to against 56km from AVV; representing $50 more by taxi each way.

YMMV.
 

dajop

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serfty said:
No advantage for me, AVV is over 100km from my East Bayside home against 60 for MEL.
It takes 1½ hours to get there for me compared to 50 minutes to MEL. The taxi fare is at least $60 more.
I concur on the taxi, big difference in cost. BUt for travel times, outside of peak hours, I don't know how it can take you 40 minutes longer to get to AVV than to MEL. In non-peak traffic it only takes 40-45 minutes to get from the Bolte Bridge turn off to AVV (compared to 15-20 mins from that point to MEL). I find the difference is about 20 mins, and if parking in long term car park at MEL, which often consumes a quite a few mins, the differential is less.

However, the real problem with AVV's distance is that most during peak hour the traffic on the Westgate/Princes Fwys can be diabolical. This has a much bigger impact on travel times than peak hour has on trips to MEL (and if there is a blockage at least there are a couple of alternate routes to MEL).
 

jakeseven7

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Went to a relatively interesting luncheon/round table where the guest (analyst) speaker talked about the potential impact of Tiger.

The concensus was that Virgin Blue will be left the most exposed in the battle when they launch (summary below)
- Jetstar is cheaper has a lower cost base
- Qantas still has a majority of business/corprates and higher end customers stitched up despite Virgin plugging away, trying to win new business
- Virgin has slowly been migrating from a LCC to a LCC with added services which kind of leaves it in no mans land and is still heavily reliant on leisure
- Virgin may be distracted trying to launch their international business
- Tiger expected to pick away at Jetstar and Virgin - where Virgin will be less cost competitve than Jetstar
- Relatively small launch fleet (5) aircraft may make Jetstar/Virgins job a bit easier
- The Singapore Governments deep pockets mean a potentially long battle....

Will be very interesting to see what happens as people keep on saying that Australia can't support any more than 2 major airlines....
 

moa999

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Tiger is still yet to make a profit in Singapore (unlike Jetstar Asia which I believe is just profitable)

so assume they will be willing to live with losses for a while in Oz
 

dajop

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It will be an interesting battle. You actually can't help but think there's some money on the table, particularly between MEL/SYD that Tiger want to have a grab at. Just compare lowest fares on MEL-OOL/MCY on DJ (usually $109) vs MEL-SYD (usually $110) .
 

maninblack

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No airline looking to make a serious impact will use Avalon as a hub. No facilities, no connections and way out for the majority of users. Doubt they would have seriously considered it. If you want to play in the Grand final, it's on at the "G", not Kardinia park.
 

xa-coupe

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I personally think it's great. Domestic doesn't bother me much but travel to asia will drop like a stone, as I like travelling there it's enough to make me smile ... almost. Australia is big enough to support another airline IMO but I expect that the lions ( tiger ?? ) share of it's infrastructure will be OS and not here to save the bucks.
 

d15.in.oz

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jakeseven7 said:
…concensus was that Virgin Blue will be left the most exposed … despite Virgin plugging away, trying to win new business… which kind of leaves it in no mans land … may be distracted trying to launch their international business...
There was a flourishing airline, which had a great idea a few years back - “keeping the air fare”, pity they decided not to grow that philosophy. :(

My hope – DJ’s great results, aren’t due to just being in the right place at the right time!
 

clifford

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xa-coupe said:
I personally think it's great. Domestic doesn't bother me much but travel to asia will drop like a stone, as I like travelling there it's enough to make me smile ... almost. Australia is big enough to support another airline IMO but I expect that the lions ( tiger ?? ) share of it's infrastructure will be OS and not here to save the bucks.
Drop like a stone? I think you're being a wee bit optimistic there.
 

clifford

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d15.in.oz said:
There was a flourishing airline, which had a great idea a few years back - “keeping the air fare”, pity they decided not to grow that philosophy. :(
quote]

That was Ansett, right?
 

serfty

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clifford said:
... That was Ansett, right?
Wrong!

Ansett? "Keeping the Air 'Fair'? ... No.

Ever hear of the 'two airline system'? Ever her of Compass? Compass II?

In 1985 the cheapest MEL/SYD return was $208. Choose betwixt AN or TN ... 'nuff said.
 
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