*On a group level
Virgin Australia capacity to Bali will be relatively flat as the three Tigerair Australia-branded 737-800s will have 180 seats compared to the 176 seats currently on these aircraft. The aircraft will be partially reconfigured with the 168 existing economy seats being reupholstered in Tigerair colours. The eight business class seats will be removed and 12 economy seats will be added, resulting in the new 180-seat single class configuration. Some galley space will also be removed. The front three rows will offer extra legroom seats with about 35in of pitch, providing five rows or a total of 30 extra legroom seats when also including the two emergency rows.
*Melbourne-Bali could be viewed as a test case for Tigerair Australia as it is very unusual for a narrowbody LCC to operate a route of over five hours. If Melbourne-Bali is successful it could give the Virgin Australia Group the confidence to hand over similar medium haul routes such as Brisbane-Bali and Sydney-Bali.
*Melbourne-Bali is an unusually long route for a narrowbody LCC - with no connectivity... But ultimately it seems unlikely that Tigeair Australia will be able to generate sufficient
yields to cover the relatively high cost of operating long narrowbody routes such as Melbourne-Bali. Most narrowbody LCC routes of over five hours are operated in high yielding markets with limited competition and significant business demand. Bali is almost entirely a price sensitive leisure market and is also hugely competitive.