Tiger triples Sydney Capacity...will JQ fight?

[straitman]

I was saying that I did agree with you that they are losing money.

So now are you trying to say that since all my maths is wrong they are making money? Since whatever gas they use is so much cheaper ?

Stick with one side of the fence.

I assume you are referring to my post above.

I am not taking shots or contradicting you, I'm just stating facts and correcting inaccuracies and it has nothing to do with sticking to one side of the fence (or other).

AVGAS is similar to high octane petrol whereas Jet A1 (Jet Fuel or AVTUR) is oily Kerosene.

Re Pilot wages, the answer is quite subjective just as is the case with every other job:!: I know many Pilots who get paid less and a few who get paid more.

 

[fortymilliondaggers]

Re Pilot wages, the answer is quite subjective just as is the case with every other job:!: I know many Pilots who get paid less and a few who get paid more.

Wages are not the whole cost of employing someone.

 

[lovestotravel]

Thanks I am sure you know ALOT more about petroleum products than I ever
will

Still not sure what Tiger are even doing in the market here to be honest, they are going after the cheapest fares and customers around.

 

[kamchatsky]

Slightly OT, but relevant to the discussion.

I flew TT from SYD-ADL and back over the long weekend (Labour Day).
Flew SYD-ADL, the plane departed from Gate 56 at 21:15, 30 minutes late, but then on that night it was raining all night so I thought it was acceptable. The aircraft was clean but small pitch. I am only 5'10' but could not stretch my legs. The plane was completely full. The staff was efficient in what they are doing. Ended up buying a hot chocolate and Berri orange juice at $3 each, which I thought was reasonable. Once landing at ADL, it took like 30 minutes for luggage to come out. Not sure if it is Tiger or ADL fault though.

My return flight ADL-SYD on Monday afternoon. The flight was on time departing at 16:30 at Gate 18, and it was arriving at SYD (at Gate 56) late for 10 minutes because of bad weather at SYD. Again, efficient staff doing their work without hassle. The only minor hassle was when checking in, they could not put Mrs and Mr Edison together, but seat separately. Luckily, when boarding, one of the passenger was willing to swap seat with my better half.

Based on this experience, I would be happy to fly with TT again. Seriously, when I booked the ticket about May this year, TT has easily the cheapest ticket available. the Friday night SYD-ADL flight was 60% cheaper than JQ/DJ/QF and return Monday flight ADL-SYD was at least 50% cheaper, and this takes into account all the additional luggage/CC fees etc. There is definitely a market for people like us who just want to get to A to B without fuss.

I hope they will eventually turn to a profit. Now what I really want is TT opening SYD market with flights to PER/ASP etc.

 

[Saab34]

Well I dont think its quite possible for a new startup like Tiger to break-even until at least 3 years. It took their Singaporean counterpart 4 years to make 40million. Startup costs were covered in the last financial year as they said, but this time round they have gone through extreme fuel prices, some dead months, mass recruitment and the GFC. Plus they were not really operating many solid routes with high frequency.
So I doubt TT will breakeven this time around. In fact, seing they have not released 08-09 results yet (7 months after), things must be a little bad, or they are still refunding aussies!

Similar case with Jetstar Asia, still yet to record a decent operating profit 5 years later.

 

[Justinf]

Also slightly off-topic.
Flew JQ on the weekend from Avalon to Sydney for the NRL grand final.
Travelled with cabin luggage only, so printed out boarding pass at home and left home 10.40am for 12.10pm flight. Got there in heaps of time. Brilliant.
Coming back, the flight was on time and we landed at Avalon 2.30pm. Upon taxiing to the terminal, the captain got on the loud speaker and informed us that as Avalon only has two bays for aircraft parking and one was out of action due to maintenance, we would have to wait on the tarmac until the departing Brisbane-bound left. This meant a wait of 45 minutes.
Avalon is convenient for us who live in the Geelong area, but it does have its downfalls.

 

[odysseus]

Agreed!

Fares of $28-$48 one way are not sustainable, as a full load of passengers would be around $6840.

Since we're speculating anyway, there's a lot more to the other side of the revenue equation.

First, with the cheap airfares they count on a certain number of no-shows and over-book their flights. We've seen before that people are willing to forego the $50 they paid a few months in advance as their plans change and 'it's only $50' as you point out.

Then there are all the surcharges they're well known for. This ranges from the credit card surcharge, to the onboard extra costs, from the $5 charge per person for allocated seating (likely for familiies) to the $25 for someone who thinks they're getting a cheap flight so will pay for some exit row luxury, the prepaid luggage charges (which don't apply to the full service airlines being compared with) to mitigate against the higher luggage fees being charged at check-in. Then there's the food/entertainment charges, and the not uncommon $80 re-booking fee + next available flight fee ($120-$180 for SYD-MEL) for that same route you referred to thanks to the most onerous and strictly applied early check-in times in the business. There's even the fact they don't put connecting flights on the one ticket which will pick up a few more in fines. And I'm sure I've missed some!

Their pricing is a lot more opaque than traditional airlines where you mostly just pay the one fee, but that means that their revenue is higher and comes from unexpected ways. To multiply number of seats x discount price is doing the income side of their ledger a disservice.

 

[Saab34]

Having a look at their website, and it appears these $28 fares are only available on Tue/Wed, and some flights on other days. Probaly no more than 25% of all flights every week.

and for that every pax that misses the checkin cutoff, add another $70