777
Established Member
- Joined
- Apr 14, 2009
- Posts
- 2,781
That comment is a little bit ignorant of history, in respect that Air Australia and OzJet never made a profit when they changed from being a successful charter company to an RPT operation, while Impulse was a successful airline for 11 years. Lets not forget Virgin where the third airline for many years as well, and we have other airlines operating quite well with larger fleets such as Skytrans and Rex, the key being they don't operate on trunk routes!
There is every reason for Tiger to do well if they pick their battles, with better management I expect they will.
That comment was in the context of Tiger folding which is what it is stated will happen if VA doesn't take control. The simple fact is Tiger would be joining a long line of failed mainstream/ third carriers in Australia. How *many years* were virgin a successful third carrier for? From memory they ran for about 12 months (at what presume was a loss) before the collapse of Ansett gifted them the position as second carrier. (It was the price war they helped unleash that precipitated that).
I actually think we are agreeing if you follow the thread back. The argument that was being made that i was challenging was that the Virgin takeover of Tiger will stop a third carrier from entering (if you read the context) the mainstream airline market in Australia. Not that there will be no niche players. I think we both agree that experience of others who have tried it and the fact it's bad strategy will make it pretty unlikely for a while regardless of who owns TT.