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Tiger's new low-cost Australian domestic airline

March 29th 2007 08:02
Assuming all regulatory bodies give the approval, Australia can expect a new domestic airline to be in operation by February next year. The airline will be owned and operated by Tiger Airways, which is 49% owned by leading international airline, Singapore Airlines. Another part owner is low-cost Irish airline, RyanAir.

These owners are not without their significance. RyanAir is an extremely successful low-cost airline in Europe and Tiger's model is based larged on their's. They already fly from Darwin to Singapore with fares as low as $8. They are also promising single figure flights for their broader domestic launch next year.


This seems to be good from a consumer point of view, though I am sure Qantas/JetStar and Virgin Blue aren't especially happy about it. Personally, I do think there is room for another low-cost airline. People are keenly taking up flights, on major routes at least, and to get some of the cheaper airfares, a customer really has to fly quite early in the morning and on days less popular.

Hopefully an extra domestic airline means we can fly whenever we want for a very low price. I do hope that single figure fares at the time of the Tiger launch don't quickly make way for middle of the road priced fares. I also hope Tiger flies into Tullamarine in Melbourne from Sydney as Virgin Blue does and not into Avalon as Jetstar does. It will be interesting to see how things progress!



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