Tiger Australia possibly facing $23m loss

[Dave Noble]

TIGER AIRWAYS has continued to keep under wraps the financial performance of its Australian operations amid industry speculation the budget carrier has suffered losses in the tens of millions since it started domestic flights out of Melbourne last November.

Tiger's parent company sought a three-month extension to file its full-year financial accounts with Singaporean regulators last month, but financial information from the budget airline reveals its Australian arm lost about $S28 million ($23 million) in its first four months of operation.

If true, the losses counter the upbeat rhetoric of Tiger's chief executive, Tony Davis, on the inroads the carrier has made into Qantas-Jetstar and Virgin Blue's share of the domestic market

Full article at Tiger Australia facing $23m loss | smh.com.au

Dave

 

[Saab34]

Not looking good currently. Mabye NTL and Darwin might have had a bit of an impact there...The question is "Oil Prices". If they dont drop for a while, TT are gone

 

[JohnK]

Not really surprised at Tiger making an operating loss. This is not a good time to start a new services in Australia especially when airlines like QF and DJ are cutting existing routes. Anyway good luck to them and I hope they are still around in 5 years time....

 

[kamchatsky]

Not really surprised at Tiger making an operating loss. This is not a good time to start a new services in Australia especially when airlines like QF and DJ are cutting existing routes. Anyway good luck to them and I hope they are still around in 5 years time....

Oh well me and 5 of my family members will be flying with them (for the first time) MEL-OOL in 2 month's time. Hopefully they will still be there! I hope they don't do another Ansett!

 

[oz_mark]

Oh well me and 5 of my family members will be flying with them (for the first time) MEL-OOL in 2 month's time. Hopefully they will still be there! I hope they don't do another Ansett!

I would suggest that it would be closer to another ozJet than another Ansett. I wouldn't underestimnate the depth of the pockets of its owners though.

 

[straitman]

I would suggest that it would be closer to another ozJet than another Ansett. I wouldn't underestimnate the depth of the pockets of its owners though.

oz_mark,

Agreed. It is no secret in the industry that the owners have very deep pockets and generally are willing to accept losses for quite a while so long as they can see a positive return eventually.

 

[futaris]

At least OzJet had the smarts to pull out of routes that were unprofitable.

Having taken Jetstar, Norfolk Air (OzJet) and Tiger over the last few days, Tiger still seem to be doing relatively well. However there ground service still leaves a lot to be desired.

 

[comint]

I think they need to be careful the punters, particularly those in Melbourne, don't see them as another Daimaru! http://www.theage.com.au/articles/2002/06/19/1023864454384.html

We're all about making a big splash... we don't need to make profits... we're closing shop now!