Tiger Airways Australia

Tiger Airways Australia
Tiger Airways Australia
IATA
TT
ICAO
TGW
Callsign
GO CAT
Founded 16 March 2007
Commenced operations 23 November 2007
Operating bases Melbourne Airport
Fleet size 8 (+2 stored)
Destinations 4
Company slogan Fly Cheaper
Parent company Tiger Airways Holdings[1]
Headquarters Melbourne, Victoria, Australia
Key people
Website www.tigerairways.com.au

Tiger Airways Australia Pty Ltd, operating as Tiger Airways Australia, is a low cost airline which commenced services in the Australian domestic airline market on 23 November 2007. It is a subsidiary of Tiger Airways Holdings, a Singapore-based company, which is owned partially by Singapore Airlines. The airline is based in Melbourne, Victoria, with its main base at Melbourne Airport. The airline's secondary base, Adelaide Airport, commenced operations on 1 March 2009. A smaller "virtual base" was opened in Sydney on 29 October 2009.[2] Tiger also opened a third operational base at Melbourne's Avalon Airport, in November 2010.[3]

Contents

History

Australian government policy and legislation currently permits airlines that are 100% foreign-owned to operate domestic airline services within the country.[4] The change in regulations originally applied only to New Zealand-owned airlines in 1996,[5] but were later relaxed, resulting in the establishment of Virgin Australia. Australian international airlines are still subject to ownership rules limiting foreign ownership to 49%.[6]

A Tiger Airways Australia Airbus A320 at Canberra International Airport, Australia. (2008)

The Australian Foreign Investment Review Board gave approval for Tiger Airways to establish its wholly owned Australian subsidiary in March 2007 and did not place any special conditions on its approval.[7] Subsequently on 16 March 2007, Tiger Airways Australia Pty. Ltd. was incorporated in the Northern Territory,[8] although the company itself is based in Melbourne, with Melbourne Airport being the airline's major hub.[9] The airline announced that its headquarters would be at Melbourne Airport on 3 May 2007.[10]

A$10 million and five aircraft were committed to start the subsidiary.[11] The airline's business model is based on that of sister airline Tiger Airways, which attempts to increase the total market size (number of passengers), control operating costs of the airline, and maximise the number of sectors served by its aircraft.[12] One way it planned to keep costs low was by avoiding expensive airports.[13]

Tiger undertook the final stage of Australian regulatory procedures on 20 November 2007, performing two proving flights from Melbourne, to the Sunshine Coast and Launceston respectively. Each carried officials from the Civil Aviation Safety Authority as well as Tiger crew. Tiger successfully completed these flights, and received their Air Operator's Certificate on Thursday 22 November, becoming one of only two Australian airlines to earn the certificate on their first attempt, following OzJet.

The aircraft used by Tiger Airways Australia have the same livery as its Singapore sister company. The airline projected initial traffic of 2 million passengers annually.[7]

Tiger Airways Australia's first scheduled flight was TT 7402, departing Melbourne for the Gold Coast, on 23 November 2007 at 7:30am.[14][15]

On 31 May 2008, it was announced that passengers would now be charged a fee for check-in luggage. It is a A$10 (for 15KG) fee at booking but if paid at check-in, it increases to A$20.[16]

It was announced on 3 April 2009 that Tiger intended to launch into the Melbourne-Sydney market, the third busiest passenger route in the world, signalling an end to its operational policy of avoiding expensive airports.[17]

On 18 July the same year, it was announced that Tiger would be increasing its Melbourne-Sydney flights by up to nine flights a day in each direction, and doubling the capacity on the Adelaide-Sydney Route. This is all part of expansion plans arising from new aircraft arriving from 4 October 2009.[18]

On 5 November 2009 Tiger Airways announced the intention to launch into the Brisbane market with services to Melbourne, Adelaide and Rockhampton. Tiger celebrated these routes for A$2 during their Second Birthday sale, along with all Tasmanian routes, and the popular Melbourne to Sydney route.

Tiger Australia announced in February 2010 that the airline is now profitable.[19] On 27 March 2010 Tiger Airways announced it would return to the Melbourne-Darwin route, with six flights weekly from 18 June.[20] 1 June 2010 marked the departure of former MD Shelley Roberts, and the arrival of her successor Crawford Rix. "As far as I am concerned, on-time performance is going to be a big area that we will be focusing on," said Rix in a media interview.[21]

On 1 July 2010, Tiger became the second airline in the world apart from Irish shareholder Ryanair, to introduce a fee to check in. The A$10 fee applies to those passengers who don't opt for the web check-in service.[22] By October 2010, the charge has since risen to A$20.

On 16 July 2010, Tiger Airways announced its intentions to cease all flying from Launceston Airport as of 2 August 2010. The Adelaide-Hobart route is also to be suspended. Communications manager Vanessa Regan says the cuts are due to seasonal demand.[23]

On 16 September 2010, Tiger commenced services to Cairns, operating a late night daily service from its Tullamarine base.[24]

On 21 October 2010, Tiger announced that it was adding two Airbus A320 aircraft to the Melbourne base in the new year, bringing its Victorian fleet to a total of ten aircraft, in line with the deal struck with the State government.[25]

Tiger announced on 25 October 2010 its intention to complete the golden triangle by expanding onto the busy Sydney-Brisbane route, offering double daily frequencies.[26]

Competitors' reactions

A Tiger Airways Australia Airbus A320 at Melbourne Airport, Australia. (2007)
Interior of a Tiger Airways Australia Airbus A320. (2008)
A Tiger Airways Australia Airbus A320 fuselage showing the writing. (2009)

The arrival of Tiger Airways Australia in the market resulted in varied responses from its primary competitors, mainly Qantas (and its subsidiary Jetstar Airways) and Virgin Australia. Jetstar, in particular, has been particularly vocal, with its then chief executive Alan Joyce quoted as saying "Tiger and what they have done have come across as a joke, and will probably continue that way".[27] He further claimed that Tiger was losing over SGD$60 million over the past two years of operations out of Singapore.[28]

Air fares began to drop, as special offers and other promotions were launched, such as Jetstar's announcement that it will "double the difference of any competitor's fare that is cheaper than its own fares".[29] This was soon followed by a bonus system to entice its customers to stay with the airline.[30] Jetstar immediately matched Tiger's Melbourne to Darwin fare upon announcement.

Tiger Airways Australia had previously been quoted as planning to offer "single digit" one-way fares when it began service. The announcement of A$79.99 flights from Melbourne to Darwin was met with criticism from Jetstar.[31]

When Tiger released its first route, Melbourne — Darwin, at a price of A$79.99, Jetstar immediately undercut the price, offering sale fares at A$79 on the same route over the same period. Similarly, when Tiger released its second route, Melbourne — Gold Coast, at a price of A$49.95, Jetstar again undercut the price, offering A$39 fares on the route over the same period. In response to Tiger's announcement of Melbourne — Launceston flights, priced at A$39.95, Jetstar offered A$29 flights over the same period, save a holiday blackout.

Virgin Australia, however, has yet to respond to Tiger in any significant way. Virgin Australia considered the possibility of establishing a low-cost offshoot to fend off Tiger Airways,[32] but instead decided to focus the funds on its new trans-Pacific carrier V Australia and on increasing their business travel share by introducing a Premium Economy service.

Melbourne Airport announced plans to cut usage fees soon after Tiger's announcement of a hub there, in a bid to increase its share of low-cost traffic.[33] Tiger's mention of New Zealand as a potential market has also raised concerns in that country.[34]

Just days before the launch of Tiger Airways Australia, Jetstar offered 5,000 seats on 21 November 2007 for the price of five cents, inclusive of taxes, on seven domestic routes, costing the airline $25.00 per seat. Jetstar claims that the sale has nothing to do with the Tiger launch, while at the same time referring to them as "competitive". The airline's spokesman, Simon Westaway, was quoted as saying that they "are a good airline in their own right. We are not going head to head. We respect them for the competitor that they are going to be".[35]

On 23 November 2007, the airline publicly slammed Qantas for being unable to provide ground handling services to the airline at Alice Springs, forcing it to delay its launch to the city by three months to 1 March 2008. The airline had promised to pay any cost to Qantas, but services were still denied. Qantas executive general manager John Borghetti responded by saying "assisting competitors is not part of my job description".[36] Tiger Airways Australia CEO, Tony Davis reminded Qantas that Tiger's parent, Singapore Airlines, provides ground servicing at Singapore Changi Airport for both Qantas and Jetstar, and it wasn't unreasonable for Qantas to provide Tiger the ground staff at Alice Springs Airport.

Tiger commenced service to Adelaide from Melbourne on 10 January 2008. Fares of $9.95 one-way between Melbourne and Adelaide were offered a few days prior to the Adelaide launch.

Tiger Airways Australia celebrated its first anniversary on 19 November 2008, with a "Free Seats" Campaign, which resulted in 100,000 seats on sale, of which half sold out within the first few hours.[37]

The airline also celebrated its second birthday on 23 November 2009 with thousands of seats on sale for A$2.

Company affairs and identity

Ownership

Tiger Airways Australia is a wholly owned subsidiary of Tiger Airways Holdings Limited, which is publicly listed on Singapore Exchange.

Performance

The airline statistics published by the Bureau of Infrastructure, Transport and Regional Economics in Australia indicate that Tiger Airways have consistently lower percentage on-time arrival and departure statistics and a higher percentage of service cancellations compared to its Australian competitors.[38]

The airline lifted its on-time performance during May 2010, with one in five flights reported as delayed as opposed to the previous figure of one in four. New MD Crawford Rix vowed to tackle on-time performance head-on.[21]

A year later, the performance rating had dropped further with only 73.9% of on-time departures, 72.8% on-time arrivals and a 3.5% cancellation rate.[39]

2011 warnings and suspension

On 11 February, erroneous data was suspected to have been put into a flight computer.[40]

On 3 March, a traffic collision avoidance system alarm was triggered after a Tiger Airlines plane flew too close to a smaller aircraft.[40] Following this, Tiger was issued with a "show-cause" notice for pilot training and maintenance. Spokeswoman Vanessa Regan told news media that "There is no cause for concern.[41] CASA [the Civil Aviation Safety Authority] has taken no action. We continue to operate and we want to reassure our customers that there is no risk to safety and we continue as normal".[42]

On 20 April, another Tiger aircraft flew below the published minimum altitude near Melbourne Airport.[43]

On 7 June, another Tiger aircraft again descended below the minimum altitude near Avalon Airport.

On 1 July, a further Tiger A320 from Brisbane to Melbourne flew too close to a Boeing 767.[40]

On 2 July, Tiger Airways Australia was suspended from flying by CASA due to "various" safety concerns.[44][45][46] The grounding coincided with school holidays in New South Wales and Victoria. News agencies estimated that 35,000 people may have been affected.[47] It is estimated that Tiger will lose A$4.2 million for every week of suspension.[40]

Special conditions were imposed on its Air Operator Certificate giving Tiger 60 days from mid June to complete instrument rating renewals. This direction was extended to all of its pilots.

A spokesperson for CASA, Peter Gibson, told the media that "Tiger has not been able to, at this stage, convince us that they can continue operations safely, so that's why they're on the ground". Citing a view that future problems would also occur, he also commented that "We [CASA] believe this is symptomatic of problems within the airline [and] we've put them on the ground while we consider all these issues".[48]

Tiger stated that it was co-operating fully with CASA.[41]

On 6 July, CASA announced that it would lodge a request for extension to the suspension until 1 August at the Federal Court in Melbourne, while CASA continued to investigate, after the investigation raised more questions into Tiger Airways Australia, and until CASA was satisfied that the airline "no longer poses a serious and imminent risk to air safety".[49][50] Consumer regulators, such as the Australian Competition and Consumer Commission (ACCC), warned Tiger Airways Australia that the airline needed to inform customers who purchased tickets about the uncertainty as to whether the airline would by flying from 9 July.[50] Tiger Airways Australia suspended its ticket sales on 5 July, however the ACCC's chairman, Graeme Samuel, stated that Tiger Airways Australia's "lack of response until that point was far from satisfactory".[50]

After five weeks CASA lifted the ban and Tiger recommenced operations on 12 August, but only for 18 flights a day between Melbourne and Sydney. Tiger announced it was suspending operations from Avalon Airport and would close its Adelaide base altogether in a "commercially motivated" decision. It also said that it would reduce its fleet to eight aircraft.[51][52][53]

Marketing

The Air Ways TV series created by the Seven Network follows the day-to-day operations of the airline.[54] It has a similar premise to the successful UK factual television series Airline. The series, while not always portraying Tiger in a positive light, does much to promote the airline.

Tiger Airways launched a new advertising campaign in December 2009 named "The Low Fare Revolution".

Destinations

A Tiger Airways Australia Airbus A320 at Adelaide Airport, Australia. (2010)

Expansion of bases

Tiger Airways had expressed interest in starting a second base in Australia, after the flights from Melbourne achieved a 91% Load Factor on average.[55] It didn't single out any particular destination. On 5 August 2008, Tiger Airways confirmed that Adelaide Airport would be the airlines second base. The airline had two A320 aircraft based there. In 2009, the company launced a new "Virtual Base" at Sydney Airport .The airline based two additional aircraft in November 2010 at its newest base at Avalon Airport, located between Melbourne and Geelong. After the 2011 CASA grounding, the airline has shut down its base at Avalon and currently only maintains it initial base at Melbourne for current operations. The "Virtual base" at Sydney remains in temporary shut down, although Melbourne-based aircraft do currently fly to Sydney Airport, Tiger Airways says it is looking to reopen the Virtual Sydney Base in the near future. Meanwhile, the Adelaide base is also in temporary shut down and no current flights are operated to the airport, Tiger Airways has not yet announced whether the Adelaide base will reopen. [3]

Fleet

As of August 2011, the Tiger Airways Australia fleet consists of the following:[56]

Tiger's CEO noted that the intention was to let the Australian-based airline to "grow as big as demand allows it to grow" which, based on statements, has been projected to be up to 30 aircraft.[7]

Onboard services

The world's largest airline reviewer, Skytrax - has given Tiger an official 3 star rating, however it does not consider Tiger airways a 'Quality Approved Airline'.[57]

The airline provides the free Tiger Tales inflight magazine and a buy on board programme serving snacks, soft drinks, beer and wine for purchase.[58] In June 2010, Tiger implemented a "cashless cabin" environment, in that it only accepted Visa or Mastercard for onboard purchases. This new method was later dropped.

Satisfaction

In a survey in 2009, Tiger Airways was voted the worst overall airline in Australia, with a 55% satisfaction rate. However, it was also voted the best value airline.[59] Key reasons cited for this rating included high "ancillary" charges and poor customer service.[60]

A survey in 2011 found that the satisfaction rate had dropped further to 49%.[61]

See also


References

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  • Tiger Airways destinations — Tiger Airways currently flies to destinations within an approximate five hour radius around Singapore to 22 destinations in nine countries around the region[1]. Thailand is its first and biggest market, with four cities served, taking advantage… …   Wikipedia

  • Tiger Airways Holdings — Limited Type Public (SGX: J7X) Industry Airline Founded Singapore, 2007 Headquarters Singapore …   Wikipedia

  • Tiger Airways — Tiger Airways …   Deutsch Wikipedia

  • Tiger Airways — Australia Airbus A320 200 en el aeropuerto de Melbourne. Tiger Airways Singapore Pte Ltd es una compañía aérea de bajo coste que opera como Tiger Airways Singapore desde el 25 de marzo de 2005. Es subsidiaria de Tiger Airways Holdings, una… …   Wikipedia Español

  • Tiger Airways — Codes AITA OACIL Indicatif d appel TR TGW …   Wikipédia en Français

  • Incheon Tiger Airways — Infobox Airline airline=Incheon Tiger Airways logo=Tigerairwayslogo.jpg logo size=261px fleet size=0 (5 intended) destinations=0 IATA= ICAO= callsign= parent= founded=2008 headquarters=Incheon, Korea key people=Chris Ward (Managing Director) Tony …   Wikipedia

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