Oracle of Delphi
KC Hill
Paladin
Craig HillTiger'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!
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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