Tiger Airways - first Australian domestic route

Discussion in 'Open Discussion' started by GCS, Jun 27, 2007.

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  1. GCS

    GCS Intern

    Nov 10, 2006
    77
    5
    Tiger's first Australian domestic route will be Melbourne to Darwin (initial fare $79 one way including taxes).

    This will link to flights from Darwin to Singapore (initial fare for Melbourne/Singapore return $499 including taxes).

    Welcome to Tiger Airways
     

  2. littl_flier

    littl_flier Active Member

    May 1, 2007
    898
    0
    Brisbane
    It's an interesting routing but does make sense. I'm suprised at the price though, not quite as cheap as I thought for an "initial" fare. I can only presume they will offer a cheaper fare as part of a pre-sale.
     
  3. fortymilliondaggers

    May 1, 2007
    199
    0
    You're right, it's not exciting, but I thnk you're right about a later pre-sale special because I haven't received any emails yet. Still, $80 to Darwin is quite good though. Just wish I could fly now and get some warmer weather.
     
  4. N860CR

    N860CR Established Member

    Nov 30, 2004
    3,295
    678
    Brisbane & Sydney
    Little bit of a let down, but I get the feeling this is a "pre-launch launch". MEL-DRW for $79 is (considering the length of the flight) pretty good value and to link it to SIN for $499 return (especially considering the excellent connection timings) is an excellent deal.

    They picked a route that's hard to discount due to its length, even at $79 I doubt they'd be making any money.

    I think there's still more bite left in the Tiger...
     
  5. littl_flier

    littl_flier Active Member

    May 1, 2007
    898
    0
    Brisbane
    I tend to agree, I work on a principle of $50 per hour (full service carrier though & long haul international) so at under $20 per hour and a large portion of taxes, its reasonable but not earthshattering. However, when JQ launched there were $29 airfares BNE/SYD-CNS (2.5 and 3 hour flights vs. 4 hrs), and we've been promised the ability to compete with JQ's recent $3 sale. Ok, these were short routes but still.... It will be interesting to see what happens on MEL-SYD.
     
  6. d15.in.oz

    d15.in.oz Member

    Nov 28, 2006
    452
    0
    #6 d15.in.oz, Jun 27, 2007
    Last edited: Jun 27, 2007
    Tiger's pricing strategy has not previously been "sale" oriented. Each month they simply release a bunch of fares into the market, and as the cheaper fares sell out, they are not replaced. Consider WalMart's - everyday low prices.


    But then Tiger's strategy has never involved connecting flights before coming to Australia, so...

    $79 is a key JQ 90 minute flight, lead in fare, price point! :)
     
  7. fortymilliondaggers

    May 1, 2007
    199
    0
    I'm looking forward to some competition on the Canberra/Sydney-Melbourne route which is currently a QF & DJ duopoly. Avalon is to Melbourne what Newcastle (Williamtown) is to Sydney so Jetstar, who consider themselves the only truly low cost airline in Australai up until now, hardly factor into the equation on Australia's busiest flightpath.
     
  8. GCS

    GCS Intern

    Nov 10, 2006
    77
    5
    Jetstar now has flights for $79 MEL to DRW. Surprise surprise.
     
  9. littl_flier

    littl_flier Active Member

    May 1, 2007
    898
    0
    Brisbane
    Otherwise "double the difference" could have become quite expensive. :eek:
     
  10. stryker

    stryker Member

    Sep 28, 2006
    450
    0
    You won't see any competition out of CBR I'm afraid.
     
  11. NM

    NM
    Moderator

    Aug 27, 2004
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    maybe not from Tiger, but once DJ get their new E-jets we might see some fireworks down that way.
     
  12. dajop

    dajop Senior Member

    Jul 1, 2002
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    I do agree that SYD-MEL needs some competition (just look at DJ's MEL-SYD fares and compare them to MEL-OOL & MEL-NTL). Wonder if Tiger will provide that competition though.

    However, saying that "Avalon is to Melbourne what Newcastle (Williamtown) is to Sydney" is utter rubbish. I've driven from Avalon to the centre of Melbourne in 45 mins (and probably would be no more than75 mins in peak hour traffic). Cannot do this from Williamtown to centre of Sydney.
     
  13. d15.in.oz

    d15.in.oz Member

    Nov 28, 2006
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    #13 d15.in.oz, Jun 27, 2007
    Last edited: Jun 27, 2007
    While I agree, those e-jets are an incredible platform, (especially the multi-configurable 170, without over wing emergency exits)…

    It only takes one breath to make the following PA announcement– “all CLs/WPs on full Y, get instant upgrade to J out of Canberra on brand new [J heavy] 737s”…
    • Ta Ta DJ! Hellooo “Royal Barge”?! (AKA, the free-fest-to-first, USA style.)
    Stage 2, perhaps the current (QF 737 low load flight) WP/CL privilege of mid-seat blocking starts getting handed out to SG,QP,PS…
     
  14. dajop

    dajop Senior Member

    Jul 1, 2002
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    I just looked out my window. There's about a dozen pigs there hovering, about 12 floors above ground level.
     
  15. littl_flier

    littl_flier Active Member

    May 1, 2007
    898
    0
    Brisbane
    Jetstar had been making a mint out of these flights if the info quoted is correct. No wonder TR could settle for $79. It's more expensive than QF to Perth.

    It's almost a nobrainer that for a seasoned AFF'er, you would take Qantas because for $47 you receive and extra 1,000 points because there are no direct flights.
     
  16. oz_mark

    oz_mark Enthusiast

    Jun 30, 2002
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    Probably are correct. The lowest price levels partially reflect the competition on a sector. Qantas prices reflect this.
     
  17. codash1099

    codash1099 Established Member

    Aug 2, 2006
    2,588
    1,063
    PER
    From "The Age"


    Jetstar undercuts Tiger offer



    David Braithwaite and Scott Rochfort June 27, 2007




    Jetstar has returned fire in the airfare price war sparked by the entry of Tiger Airways into Australia, undercutting its new rival's launch fares within hours of their release.

    Singapore's Tiger this afternoon launched its first local routes with a salvo of aggressive pricing, including all-inclusive one-way Melbourne to Darwin flights from $79.99.

    The Qantas-owned budget carrier Jetstar swiftly responded to the incursion on its turf, cutting its lowest Melbourne to Darwin fare to $79 from Tiger's launch date on December 1.

    The Singapore Airlines part-owned Tiger will fly from Melbourne to Darwin and Singapore, offering all-inclusive return flights from $500 on the international route and $80 one-way fares between Melbourne and Darwin.

    Jetstar spokesman Simon Westaway said it was taking Tiger "very seriously", but he was surprised the Singapore-owned airline did not try to make more of an impact on its launch.

    "They're kidding themselves if they think $79.99 is going to shake the market up too much," he said.

    "It's an attractive airfare, but if you look at Jetstar's history we've offered over 8 million fares at $100 or below.

    "When we launched our initial sale in February `04, we started across the network all-inclusive $29 offerings.

    "If that's the best they've got, they've let a tiger cub out of the cage rather than the predicted mauling..."

    Touting itself as "Australia's only true low fare airline", Tiger's internet-only promotional fares on its first domestic route set the scene for Jetstar's retaliatory discount.

    "Australians can finally enjoy real low fare, reliable travel between the Northern Territory and Melbourne", Tiger Airways chief executive Tony Davis said in a statement today.

    Jetstar insists that Virgin Blue is its main rival, but it has pre-empted Tiger's entry into the Australian market with a string of sales, a new low-fare guarantee and some stinging rhetoric.

    "Tiger and what they have done have come across as a joke, and will probably continue that way," Jetstar chief executive Alan Joyce said last week.

    "They are really focused on losing money on all of the markets that they operate on. Tiger is a Singapore Government entity - they don't really have a commercial bone in their body," he said.

    Tiger says it will add more routes to its Australian network in coming weeks, and recently placed an order for 30 extra Airbus A320s to be delivered from 2011, with an to buy another 20.

    Asia's largest budget airline AirAsia is expected to announce the Australian destinations for its new long-haul carrier next month. AirAsia's founder Tony Fernandes has signalled his interest in flying to Adelaide, Melbourne's Avalon and Newcastle. AirAsia is expected to offer return fares for below $400.
     
  18. fortymilliondaggers

    May 1, 2007
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    If Jetstar can match the Melbourne-Darwin price, it makes you wonder what sort of margins they are running across their network.
     
  19. dajop

    dajop Senior Member

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    This price has almost been achieved by Jetstar before. Last winter my parents flew to Darwin and back for $179 each on Jetstar. It was a two for the price of one deal. Net price $89.50 per person per flight.
     
  20. NM

    NM
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    Aug 27, 2004
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    They are not matching the $79 lead-in fare for every seat on the aircraft. Its just the same as when JQ offered $29 fare. These are lead-in fares with limited seat availability. You cannot judge the revenues to be earned just from the lowest fare offered on a flight.

    And note that JQ has a policy whereby they will pay you twice the difference if you find a cheaper comparable fare on another airline. So if they did not match the Tiger fare they could be liable for a significant amount of refunds.
     
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