Tigerair's turnaround

[Mattg]

An interesting article in today's SMH about the turnaround of Tigerair. Apparently the airline is now running on time, has satisfied customers and is starting to make a profit.

I must admit, I've flown Tiger a couple of times over the past few years and they have been alright. In fact, I'd say I would prefer them to Jetstar if not for the fact that I can get lounge access when flying JQ.

How Tigerair, once Australia's worst airline, has turned itself around

Tigerair, once the laughing stock of Australian aviation, says it has won back the trust and patronage of enough Australians to record its first ever full-year profit since bursting onto the market nine years ago.

The budget airline's owner Virgin Australia reported Tigerair had underlying earnings before interest and tax of $2.2 million in 2015/6, up from a loss of $37 million the year before.


From acts of God to perennial doubters, there are plenty of obstacles to overcome when it comes to growth.


Chief executive John Borghetti​ said the full-year profit milestone came a year earlier than expected and had been driven by improved customer service, performance and efficiency.


It is a far cry from the Tigerair of just five years ago, when its customer satisfaction rate was just 37 per cent and almost four out of every 10 flights arrived late.

 

[Simo]

I have flown Tiger a few times... Have been on time and yes it is very budget driven service but when you can get a family of 3 from OOL to Syd for less then one on QF it makes it a easy choice. They have always been on time and bags have turned up the other end as well.

 

[UP4014]

Interesting to see Tiger putting money into loss making Virgin. Good to see them making a profit but I wonder if it's really there or something has been deferred for a year or two to bring the spending down right now which will come back to haunt them.

 

[joyvee]

Mattg,
My sister who has lifetime unlimited access to QF lounge has been able to access that lounge previously when flying Jetstar.

Qantas seems to have changed its policy as she was denied lounge access on her Jetstar tickets when travelling to Darwin recently.

Can anyone clarify current QF practice? Maybe it was an error? Thanks

 

[juddles]

I don't like the long term prospects of Tigerair, but I still rate those prospects as better than Virgin's

 

[mannej]

Mattg,
My sister who has lifetime unlimited access to QF lounge has been able to access that lounge previously when flying Jetstar.

Qantas seems to have changed its policy as she was denied lounge access on her Jetstar tickets when travelling to Darwin recently.

Can anyone clarify current QF practice? Maybe it was an error? Thanks

Doesn't seem right? Sounds as if some details are missing here.

 

[juddles]

Doesn't seem right? Sounds as if some details are missing here.

Agree it doesnt sound right. Maybe her lifetime membership is Qantas Club and she was inbound from a foreign airport with the third-party lounge refusing access?

 

[Mattg]

Mattg,
My sister who has lifetime unlimited access to QF lounge has been able to access that lounge previously when flying Jetstar.

Qantas seems to have changed its policy as she was denied lounge access on her Jetstar tickets when travelling to Darwin recently.

Can anyone clarify current QF practice? Maybe it was an error? Thanks

I'm not aware of any recent policy change. She should be allowed to use any domestic Qantas Club or international QF business lounge when flying Jetstar. FWIW I was able to use the Qantas Club in Melbourne on a Jetstar ticket just last week.

The only exception would be in a port without a Qantas-operated lounge. For example, I was denied entry to the third-party lounge that Jetstar uses in Denpasar a few months ago as a QF gold member flying in JQ business class (but without the Max bundle).

Where was she flying from?

 

[Melburnian1]

I don't like the long term prospects of Tigerair, but I still rate those prospects as better than Virgin's

Although VA (and TT) have the backing of foreign owners with deep pockets, I agree with you juddles, except I don't like the long term prospects of either of these airlines.

VA has accumulated losses in recent years of A$500 million. TT was supposedly announced as profitable to the tune of A$2.2 million as above but that would not cover the cost of capital.

Even QF's profits will decrease when the oil price goes back up. The economy's performance is hardly stellar. Inbound tourism to Oz from mainland China may be starting to slow down somewhat compared to what was occurring two to three months ago, but we need to wait a bit longer to see if the trend continues.

 

[PineappleSkip]

Disappointing news. I always enjoyed a good Tiger bashing thread; the ones that always had something like 'never again' in the title. Looks like slim pickings in the future.

Cheers skip

 

[yohy?!]

they are quite ok now, qf closing the t2 lounge at syd removed the last differentiator to fly jq

 

[pauly7]

Although VA (and TT) have the backing of foreign owners with deep pockets, I agree with you juddles, except I don't like the long term prospects of either of these airlines.

VA has accumulated losses in recent years of A$500 million. TT was supposedly announced as profitable to the tune of A$2.2 million as above but that would not cover the cost of capital.

In the not too distant future it is anticipated VA will probably be privatised and delisted from the ASX, essentially being privatised.
VA HQ will breathe a sigh of relief - not having to publicly disclose their horrific numbers!

 

[JohnK]

I have flown Tiger a few times... Have been on time and yes it is very budget driven service but when you can get a family of 3 from OOL to Syd for less then one on QF it makes it a easy choice. They have always been on time and bags have turned up the other end as well.

As long as you book early.

Occasionally I check last minute flights and Tiger can be expensive.