Business Times - 28 Jul 2005

COMMENTARY
Will Orange Star give its owners more juice?

The jury's still out on whether a merger of Valuair and Jetstar - so apart ideologically - can produce a fully functioning business

By VEN SREENIVASAN
SENIOR CORRESPONDENT

WILL the merger of two low-cost airlines result in a more successful larger company? That's what the industry has been wondering since Valuair and Qantas-controlled Jetstar Asia announced a merger under the umbrella of Orange Star.

Details are sketchy, but Orange Star will be the holding company while the two budget carriers operate as separate and distinct entities - at least for now.

The party that appears to be in control of Orange Star is Qantas. Its chief executive Geoff Dixon is the new chairman, while Ken Ryan, who is on secondment as chief executive of Jetstar, will be chief executive of the holding company. Qantas is said to be investing about $30 million for a 44.5 per cent stake in Orange Star. The other key shareholders include Temasek Holdings, Hong Kong-listed Star Cruises, and businessmen Tony Chew and FF Wong.

It looks fine, except that Orange Star will have to deal with two management teams, two cost structures, two operating models and two fleets - not exactly the best way to go about things in these days of cut-throat competition and soaring fuel costs.

Not surprisingly, analysts are confused.

'In our analysis, neither of the two airlines appears to have been 'knocking the ball out of the park',' says Tim Ross of the Sydney-based Centre for Asia Pacific Aviation. 'We wonder whether the merger of the two will result in one slightly larger underperformer rather than a fully-functioning business - particularly given the ideological gulf that appears to separate their businesses.'

The problems that Valuair and Jetstar face are not unique. After a promising start, several of the region's low-cost carriers have found the weather turbulent. Protected skies, expensive fuel, unprofitable routes, costly ground services and predatory or irrational pricing by full-service rivals have made the going rough.

Interestingly, other than Air Asia, few of the region's dozen or so budget carriers have revealed their revenue, load numbers or break-even points. But given the circumstances in which they are operating, it doesn't take a genius to guess what these might be.

How many of the newcomers will survive if jet fuel continues to hover above US$70 per barrel?

As Standard & Poor's aviation writer Shukor Yusof pointed out this week, although airline mergers have the potential to create revenue, operating costs can also rise. So the key to Orange Star's success is to quickly boost revenue, while minimising costs.

How Orange Star will achieve this under the current two-airline structure remains to be seen. But operationally merging the two entities is easier said than done.

They are based on different models and technology platforms. There would be issues of staff and asset redundancy. And while Singapore has given the nod for a merged entity to take over all the routes of the two players as long as they use them, the countries they fly to may not take such a generous view.

On top of all this, the factors that stood in the way of the two carriers' success won't change just because they will come under one company.

Fuel costs are huge, key markets like Indonesia remain closed and others like China and India have reservations about allowing foreign budget carriers to fly to their key cities.

Additionally, the cost differential between regional low-cost carriers and their full-service competitors is small compared with those in Europe and the United States. And finally, the region's geography and infrastructure constraints are the same as they always were.

So are the investors of Valuair and Jetstar throwing good money after bad? Would either of them have been better off with a more established player boasting a stronger brand-name, distribution network and presence on the ground?

Only time will tell. But for the moment, one has to believe that the folks who are coughing up some $60 million to get Orange Star going have a solid game plan.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.


Business Times - 28 Jul 2005

AirAsia unfazed by Orange Star

It's a matter of how deep its pockets are, says Fernandes

By JOYCE KOH

(SINGAPORE) AirAsia's Tony Fernandes is unfazed by Orange Star, the new low-cost carrier (LCC) that will operate Valuair and Jetstar Asia. In fact, he doesn't think there will be any change in the competitive landscape.

Speaking to BT from Brunei as he waited to board a plane, the straight-talking Mr Fernandes said: 'I think Jetstar Asia would be competitive whether or not they have Valuair. It would be facetious to say there's no threat. I mean, they have a lot of money.'

But according to him: 'The sustainability of their business is based only on how deep their pockets are. We have declared our profits from Day One and shown our numbers. Up to now, no low-fare carrier in Singapore after one year of operations has shown any financial results.'

AirAsia, the only publicly listed budget airline in the region, reported earnings of RM49.1 million (S$21.8 million) last year. But it has said it won't meet its current-year profit target of RM147.4 million because of delays in delivery of leased aircraft, high fuel prices and start-up costs at its Indonesian unit Awair.

BT reported that AirAsia offered $20 million for Valuair, but the latter eventually tied up with Jetstar Asia in a deal that will give it a $60 million capital injection.

But don't suggest to Mr Fernandes that AirAsia's bid failed. 'Let's put it in perspective. Valuair was never something that was very important to AirAsia,' he said. 'It was something that we looked at and that we walked away from. We weren't interested in a bidding war.'

Asked what it was that he could have offered Valuair, he said: 'What I think we would have done is we would not have pumped in as much cash, but we would have pumped in all the cost savings that add up effectively in cash.'

Among these, he cited an established distribution system, an extensive network of sales offices and a fuel hedging programme, 'so we don't need $60 million to turn the operation around'.

Mr Fernandes said that with AirAsia's established infrastructure and subsidiaries in Thailand and Indonesia, running a Singapore operation would have been a small additional cost.

He said he came away from the bidding episode knowing the business model in Singapore has not been working: 'It gave us a good insight into the Singapore low-cost carrier industry - that it is a very hard industry to make money,' he said. 'The costs are too high in comparison to the fares that need to be charged to stimulate the market.'

He added that besides learning more about the market here, he now has a better understanding of AirAsia's competitors and 'knows their cost structure very well'.

He is also happy at having established a relationship with the authorities here and hopes to carry this relationship forward.

On surprises he might throw up next, he had only this to say: 'Watch this space.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

28 July 2005

Tiger Airways to add more routes, create air hubs across region
By Michael Lim, Channel NewsAsia

SINGAPORE: Tiger Airways has set its sights on becoming the next pan-regional low-cost carrier after AirAsia, its CEO Tony Davis has said.

The carrier has added another destination to its routes - Krabi - and says it is looking to form regional air hubs through either partnerships or joint ventures in the region.

Tiger Airways says it is still too early to say how the merger between its rivals JetStar Asia and Valuair will pan out.

But the carrier says its biggest competitor is not here in Singapore but across the Causeway.

Tiger sees the Malaysian low-cost carrier AirAsia as its biggest threat.

That is because both carriers are operating along the same low-cost model, much like Ryanair in Europe and Southwest Airlines in the US.

Said Mr Davis, "To be frank my focus has always been on our competitor to the north of here. I see Tiger Airways’ biggest competitor to be AirAsia and that will continue to be the case. We see ourselves as a competitor airline on a pan-regional basis, which is why we have adopted services between Macau and the Philippines and we will continue to look outwards at our competitors."

Tiger Airways says it will continue to build on and optimise its existing network out of Singapore.

But it is at the same time looking at the possibility of establishing air hubs across Asia.

The carrier does not rule out entering into partnership or joint ventures with local companies in countries where air rights are still heavily regulated.

Mr Davis said, "I think we have seen AirAsia do that very successfully. AirAsia operates a successful partner in Thailand. They have set up a similar partnership with a company in Indonesia. I think that is the kind of model you will see developing with Tiger Airways.

"That we are able to, where it makes economic sense we would enter into relationships, partnerships depending on the form that is necessary in different parts of the region to expand our volume, expand our brand and reach and to make sure that we operate a pan regional network."

Tiger Airways is also looking at expanding its routes, after adding the Thai resort of Krabi to its network on Thursday. – CNA /ct

Copyright © 2005 MCN International Pte Ltd

Business Times - 02 Aug 2005

S'pore LCCs seen having to rationalise operations

Stiff competition, high fuel costs, poor routes take their toll

By VEN SREENIVASAN

CUT-THROAT competition, closed skies, rising fuel costs and poor loads could force Singapore's low cost airlines to rationalise their routes and operations.

Industry watchers reckon that Valuair, which is merging with Jetstar Asia, could be forced to give up its Perth route, while Tiger Airways may have to rethink Hatyai. And Jetstar itself may have to review its Taipei hop as it considers new routes in China.

After a promising start two years ago, several regional budget airlines have found the going rough, no thanks to protected skies, unprofitable routes, costly ground services and predatory or irrational pricing by full-service rivals.

'Unlike the case in the US, LCCs (low-cost carriers) here have not had a severe impact on national or flag carriers,' said Shukor Yusof, aviation writer at Standard & Poor's, the corporate credit ratings agency. 'As far as we know, only AirAsia is profitable, while the rest struggle as industry overcapacity, low fares and high jet fuel prices taking their toll. AirAsia has benefited from its early start in the no-frills market and its smart hedging programme.

'The three LCCs in Singapore haven't been as fortunate, and their earnings are reportedly dismal, raising questions whether LCCs in the region will continue to face turbulence or - worse - fade away like some of the failed LCCs in the US and Europe.'

Indeed, other than Air-Asia, none of the region's dozen or so budget carriers have revealed their revenue, load numbers or breakeven points. But given the circumstances in which they are operating, it doesn't take a genius to guess what these might be.

Tiger is said to be filling less than a quarter of its planes on its flights from Singapore to Hatyai in southern Thailand - a region which has of late been rocked by insurgency.

Meanwhile, Valuair is competing head-on with Singapore Airlines and Qantas on its Singapore-Perth hop.

While the wide-bodied aircraft used by two full-service airlines enable them to make the flight in less than four hours, Valuair's A320 takes almost six hours - flying largely over Indonesian land as the aircraft do not have the Etops (extended twin engine operations) accreditation needed for flights over the Indian Ocean.

Seah Hiang Hong of Kim Eng Research blames protectionism and 'closed skies' for the dilemma facing by the region's budget airlines. 'The routes that all these carriers fly to are determined by the availability of air traffic rights rather than whether they make good long-term economic and business sense,' he says. 'Ideally they should be flying to places in India and China instead of competing on crowded, skinny and seasonal routes to Thailand.'

The result has been very poor yields. Analysts say the soaring price of fuel has forced the new airlines to rationalise their operations earlier than they would normally have had to.

'We are already seeing signs of acknowledgment that the ambitious plans laid out last year won't materialise,' Mr Seah says.

So far, the most prominent result of this pressure is the merger of two of Singapore's three new airlines.

After weeks of market speculation, Valuair and Jetstar last week confirmed that they would operate under a new company, Orange Star, whose CEO would be Ken Ryan, formerly chief executive of Jetstar. Orange Star's chairman is Qantas CEO Geoff Dixon.

But as analysts point out, Orange Star will have to deal with two management teams, two cost structures, two operating models, two fleets and some duplication of routes.

'Unfortunately, the outlook for the regional LCC sector is not as bright as it was made out to be,' notes Mr Shukor.

'It remains to be seen if Jetstar and Valuair will be able to successfully integrate their business models. While barriers to entry in the industry are low, barriers to exit are high due to the huge amount of capital involved.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

04 August 2005

Budget carrier AirAsia secures US$1b loan to buy 30 Airbus jets
By Frederick Lim, Channel NewsAsia

SINGAPORE : Asia's largest budget airline AirAsia has secured a US$1 billion loan to pay for 30 new Airbus A320 aircraft to be delivered in two years.

Chief Executive Tony Fernandes, who is in Singapore for a seminar, confirmed this on Thursday.

He also said AirAsia was sticking to its plan to aggressively grow its fleet.

It has pending orders for another 30 Airbuses as well as an option for 40 more.

High oil prices, air rights restrictions, pilot shortage and fierce competition by rivals: these adverse conditions have resulted in the forced marriage of Valuair and Jetstar.

But AirAsia said it was not slowing down plans to beef up its fleet.

Mr Fernandes said: "No, no absolutely not. We like to increase it. We have been telling Airbus to bring in our airplanes faster. I think we got a big advantage over the other guys because we built this at a period of low cost. So now we don't have to amortise these costs."

"We don't have to, like, go into a new route, spend a lot of money, build a new distribution - a lot of the new guys have to do all that when prices are high. We've already done that."

AirAsia said its first mover advantage has given it greater in-depth knowledge of the markets it is in and how to serve them better.

Its strategy now is to build an ASEAN brand, and its Indonesian joint venture will now be re-branded as Indon AirAsia.

But AirAsia still does not see itself operating out of Changi airport as a base.

Mr Fernandes said: "The cost structure of of Changi, even if you build a low cost terminal still doesn't encourage low cost because it's built for big planes."

AirAsia said it would continue to serve Singaporeans and Malaysians out of Senai for now. - CNA /ch

Copyright © 2005 MCN International Pte Ltd

I dont think Senai is popular for now.

I dont think Senai is popular for now.

The biggest problem is schedule(one very early and one rather late flight)......if I want to go KL, why must i wake up like 4am in the morning (to catch a flight in Senai) when I can take a very comfortable coach from Singapore at 7am(even if u miss this bus there is a bus leaving for KL every hour)??? :)

exactly...

in fact the last time szehoong tried Air Asia from KL to Singapore, he ended up wasting hours at the bus transfers at the border, which took much longer than the actual flight from KL to Senai :lol:

S'pore-Hat Yai route is hot: Tiger Airways chief

5 Aug 05


(SINGAPORE) Tiger Airways enjoys strong passenger traffic on its Singapore-Hat Yai route despite the insurgency troubles in the region, its chief executive Tony Davis said earlier this week.


He was responding to media reports and speculation that the low cost carrier (LCC) might be suffering poor loads as tourists shied away from the region, and could even cut back capacity on the route.

'Tiger Airways is extremely happy with our services to Hat Yai and has no plans to rethink our service,' he said. He added that the airlines' passenger loads between Singapore and Hat Yai were 'far higher' than had been cited in a recent BT report.

The report, quoting industry watchers, had said that Tiger could be filling less than a quarter of its planes on its flights from Singapore.

'This is completely untrue,' Mr Davis said. 'Tiger Airways flight loads between Singapore and Hat Yai are far higher.' He added that Tiger could not reveal the individual route performance figures for competitiveness reasons. Aside from AirAsia, none of the Singapore-based budget carriers reveal their passenger load factors.

The airline operates 10 flights a week between Singapore and Hat Yai.

Tiger Airways, which is 49 per cent owned by Singapore Airlines, appears to be still flying high while its two local competitors, Valuair and Qantas-controlled JetStar Asia, have been forced to merge after finding the going rather tough in the wake of high fuel prices and protected skies.

Analysts have generally regarded Tiger Airways and Malaysia's AirAsia as being the two strongest LCC players in the region.

Recently, Mr Davis told the media that Tiger Airways had surpassed its first phase of sustainability of the LCC business model.

The airline has just placed out a US$500 million order for eight new Airbus A320 planes, effectively tripling its fleet size to twelve planes.

The airline flies to 11 destinations in six countries, with some routes such as Manila apparently enjoying robust loads.

Its other strong load sectors are said to be Ho Chi Minh City and Bangkok.


By VEN SREENIVASAN

Business Times - 10 Aug 2005

Jetstar marks Kolkata flight launch with SME conference

Budget carrier to fly leaders of at least 20 Singapore SMEs for India event

By VEN SREENIVASAN

(SINGAPORE) It may be an unusual way to mark an inaugural flight, especially if you are a budget carrier, but Singapore-based Jet star Asia is organising a conference of small and medium-sized corporations in Kolkata to celebrate its first flight to the Indian city.

The Qantas associate, which recently merged with rival Valuair under the Orange Star banner, has tied up with the Federation of Indian Chambers of Commerce and Industry (FICCI) and the GA Group (the Global Indian Business Network) to organise the first ever Singapore-India Small & Medium Enterprise conference in Kolkata, India.

The event is being organised in conjunction with the budget carrier's inaugural flight to the Indian city on Aug 18.

And Jetstar has committed itself to fly out the captains of at least 20 leading Singapore SMEs to Kolkata for the event. 'SMEs are a key target market for budget carriers like us,' said Dorit Grueber, head of marketing at Jetstar Asia. 'We see a lot of SME executives travelling on our flights and with India now opening up, we believe we can facilitate the process of building bridges.'

Kolkata, in the state of West Bengal, is also a strategic entry-point to growth areas in the Indian east-coast markets and is home to many successful Indian companies.

A key highlight of the four-day conference will be discussions of the implications and impact of the CECA (Comprehensive Economic Cooperation Agreement), where participants will identify opportunities to capitalise on the agreement recently inked by Singapore and India.

Besides the SME conference which will be presided over by the Chief Minister of the state, Buddhadev Bhattacharya, the organisers have also arranged a series of networking opportunities for the Singapore and Indian SMEs. There will also be a Jetstar Asia/ FICCI/West Bengal government joint press conference.

Kolkata is Jetstar's latest destination, and the airline will start thrice-weekly services to the Indian city next week. It currently flies to Bangkok, Hong Kong, Manila and Taipei. And it expects to start flights soon to Phnom Penh and Siem Reap in Cambodia.

Following a difficult seven months, Jetstar and privately-owned discount carrier Valuair last month announced a merger under an investment company called Orange Star.

Qantas chief executive Geoff Dixon is the chairman of the new holding company, while Jetstar Asia's chief executive Ken Ryan is its chief executive. Qantas is investing about $30 million for a 44.5 per cent stake in Orange Star.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

23 August 2005

Tiger Airways to breakeven in three years: CEO
By Anjana Menon, Channel NewsAsia

SINGAPORE : Tiger Airways will take up to three years to breakeven, according to CEO Tony Davis in an exclusive interview with Channel NewsAsia.

And it is some two years later than targeted initially.

When the budget airliner was first launched by Singapore Airlines and its partners last year, the carrier said it was aiming to turn in a profit within the first year of operations.

But the going has been tough, amid keen competition and rising oil prices.

Still, despite signs of consolidation in the industry, Tiger Airways says it is focusing on expanding its business even if that means taking a longer time to breakeven.

Said Tiger Airways' CEO Tony Davis: "The airline industry has very high startup costs. You have to plan for long term success and long term growth and that's what we're doing. When you are investing and spending a lot of money in developing routes, taking on new aircraft and recruiting new staff, it makes short-term financial performance difficult. We've always looked at three-year programme for individual routes to become more profitable.''

Tiger Airways says it will continue to push for more routes and alliances to serve markets such as China.

"We are taking to potential partners across the region but we are also developing our route network,'' said Davis.

It may also be close to offering routes to India.

"Talks are ongoing with the India government this week and we're hopeful that it will result in additional rights being granted to Tiger Airways to start services to India," said Davis.

Tiger Airways is one of the few budget carriers that are tipped by industry analysts to survive the consolidation in the sector.- CNA /ls

Copyright © 2005 MCN International Pte Ltd

29 August 2005

Singapore budget carrier Tiger Airways hits half-million passenger mark

SINGAPORE - Singapore budget carrier Tiger Airways said Monday it has already carried half a million passengers before reaching its first full year of operations next month.

The lucky 500,000th passenger was a man taking a flight from Singapore to Ho Chi Minh City in Vietnam on Monday. He was presented with a bottle of champagne and a pair of return tickets to any Tiger Airways destination.

"We are absolutely delighted to hit the half a million passenger mark ahead of our first anniversary of operations," Tiger Airways chief executive Tony Davis said in a statement.

He said this showed Asian travellers have "fully embraced the concept of budget air travel" through which they normally book through the Internet and sacrifice legroom, meals and in-flight services for cheaper tickets.

Tiger Airways, which is 49-percent owned by Singapore Airlines, first took to the air on September 15, 2004.

The carrier currently flies from Singapore to 10 cities in Thailand, Vietnam, the Philippines and Indonesia, as well as to Macau.

From October 30, it will start flights from Singapore to Krabi in Thailand and between Macau and Clark Field in the Philippines.

While Tiger Airways has survived its first year of operations, Southeast Asia's highly competitive low-cost airline industry saw its first merger last month in a sign of turbulence ahead for the sector.

Qantas-backed Jetstar Asia and Singapore-based Valuair announced in July they will form a new company that will own and operate both carriers.

Analysts have said that tougher competition, soaring jet fuel costs and continued protection by governments of their domestic aviation industries are likely to lead to more mergers. - AFP/ir

Copyright © 2005 Agence France Presse. All rights reserved.

30 August 2005
Tiger Airways to offer S$1 fares between Singapore and Hatyai

SINGAPORE : The price war among Singapore's budget carriers has intensified.

Tiger Airways has fired the latest salvo by saying it will offer promotional fares every Wednesday from now till the end of September to celebrate its first anniversary of ticket sales.

The airline will kick off the promotion on Wednesday with a special one day sale of air-tickets between Singapore and Hatyai at just S$1 each.

Tiger current flies to 10 cities in 6 countries, including Thailand, Vietnam and the Philippines.

It will start flying to the Thai resort of Krabi on October 30 as well as operate regional flights between Macau and Manila. - CNA /ct

Copyright © 2005 MCN International Pte Ltd

05 September 2005

Low-cost carriers hold off imposing fuel surcharge for now
By Anjana Menon, Channel NewsAsia

SINGAPORE : Singapore-based low-cost carriers appear to be holding off imposing a fuel surcharge for now, despite oil prices hovering at their highest levels ever.

Jet fuel accounts for about a third of any carrier's operating costs.

For now, some budget carriers say they will concentrate on keeping the tourists flying to boost revenues.

Oil prices have soared nearly 60 percent in the past year.

But that hasn't made the likes of Tiger Airways impose fuel surcharges to recover the cost from passengers.

And Tiger Airways says it is not likely to in the near future.

Said Tony Davis, Tiger Airways CEO, "We have a very robust business plan that enables us to grow the business. Clearly higher oil prices are something we would prefer aren't there, but it does affect all other airlines. It's consistently the low-fare airlines like Tiger Airways that manages all of our costs exceptionally well that are able to cope with these higher oil prices and continue to offer lower fares. And that's what we aim to do."

Other carriers such as ValuAir and JetStar could not be reached for comment.

For the moment, Tiger says it is capitalising on record tourist arrivals into Singapore to boost its sales.

The latest data for July shows more than 800,000 tourists came to Singapore, led by Indonesia and China.

But analysts say there will be challenges.

Said Kevin Scully, managing director of NRA Capital, "Singapore's problem has been that it has seen the number of days of stay for tourists falling and I think the key issue for us is now to try and extend it by half a day or even a day."

An expert on regional tourism says Singapore could use its strategic location to its advantage.

Said Christine Ennew, professor of marketing at the University of Nottingham, "Singapore might be able to position itself as a base for seeing more exotic parts of Asia."

For now, budget carriers like Tiger Airways and JetStar Asia are still ringing in the numbers, with hotel occupancies at nearly 90 percent. - CNA /ct

Copyright © 2005 MCN International Pte Ltd

Batam to Jakarta flights starting

8 Sep 05

Low-cost carrier Awair offering one-way fares from $16.99; service starts next Thursday

By Karamjit Kaur
Transport Correspondent

INDONESIAN budget carrier Awair is aiming for the next closest destination after failing to secure a licence to fly to Singapore - Batam.

Details of the new Jakarta-Batam service starting next Thursday, with promotional one-way fares starting from $16.99, appeared in an advertisement in yesterday's Straits Times.

The fare excludes taxes and ferry ride, which will add up to about $30 for an adult return ticket.

The advertisement highlighted the hourly ferry service to the Indonesian island from Singapore's Harbourfront.

Awair is 49 per cent owned by Malaysian budget airline AirAsia.

And its strategy for the Jakarta-Batam service recalls AirAsia's 2003 attempt to get around problems with Singapore when it applied for approval to set up a joint venture Singapore-registered budget carrier.

AirAsia failed to get the green light then, so the airline started flights from Kuala Lumpur to Johor Baru instead.

It applied to the Transport Ministry for a permit to bus its passengers between Singapore and Senai Airport, but that too failed.

But when contacted yesterday, Mr Tony Fernandes, AirAsia's chief executive officer, insisted that he was not out to entice the Singaporean traveller with the Jakarta-Batam service.

He said: 'We are doing this primarily for Indonesians and I don't expect that it will be popular with Singaporeans anyway.'

So why advertise here?

Mr Fernandes said: 'We are not doing this for the Singaporean traveller but there may be some who might be interested, so we are reaching out to this segment as well.'

Awair had applied to the Civil Aviation Authority of Singapore for approval to fly to Changi Airport.

But in February, the carrier aborted the plan, citing delays in obtaining regulatory approval.

Even if Awair clears all the regulatory hurdles here, Singapore authorities have said they will not let the budget carrier fly to Changi Airport until Indonesia lifts a ban on foreign budget airlines applying to fly to four key Indonesian cities.

The block on flights to Jakarta, Medan, Surabaya and Denpasar was imposed by Jakarta to protect its fledgling air transport industry.

Another AirAsia affiliate, Thai AirAsia, however, has been flying to Singapore from Bangkok since February last year.

An AirAsia spokesman said that Awair, which recently took delivery of its third Boeing 737-300 aircraft, will also be starting two more routes this month.

The first is Surabaya-Jakarta and the second is Jakarta-Kuala Lumpur which will also be the airline's maiden international route.

For the Jakarta-Batam service, flights will take off daily at 1.20pm from Batam's Hang Nadim Airport.

On Mondays, Fridays and Sundays, there will be a second service at 5.20pm.

Sept 13, 2005
Tiger Airways won't impose fuel surcharge for now

SINGAPORE-BASED Tiger Airways said yesterday that it will not impose a fuel surcharge for the 'foreseeable future', despite surging jet fuel prices.

The airline hopes this strategy will give it an advantage over rivals like Jetstar Asia and Malaysia's AirAsia, which have both imposed surcharges.

Tiger Airways chief executive Tony Davis said: 'We price our product to make it competitive and ultimately that will determine how successful we are.

'Without imposing a surcharge, the difference between us and our competitors is even wider and therefore it means that our own performance will be that much greater.'

Jetstar increased its surcharge per flight by $2 to $10 two weeks ago. It has been charging $8 for all sectors, except Hong Kong, since May 12. AirAsia has been imposing a surcharge of up to RM25 (S$11) since July 14.

Tiger's parent company Singapore Airlines (SIA) announced its fifth round of surcharge increases last Thursday as jet fuel prices leapt to US$80 a barrel, up from US$48 a year ago.

From tomorrow, SIA passengers will pay a maximum of US$50 in fuel surcharges for a one-way fare.

Mr Davis also said his airline is not 'hedging' its fuel requirements.

Hedging involves locking in the prices of future fuel purchases for a certain period of time, regardless of daily price movements.

Rival AirAsia has used oil futures contracts to help reduce the risk of oil prices eroding its profits. The contracts will shield 63 per cent of its fuel costs for its current fiscal year.

Hedging and ticket surcharges are giving AirAsia an effective discount of US$20 a barrel on jet fuel.

ARTHUR POON

Copyright © 2005 Singapore Press Holdings. All rights reserved.

September 14
First all-female cockpit crew take to the skies on Jetstar Asia flight

SINGAPORE : Singapore's first all-female cockpit crew took to the skies on a Jetstar flight on Tuesday.

Captain Anastacia Gan piloted the plane with fellow female cockpit members for the Bangkok flight.

There are just a handful of female pilots in Singapore.

Anastacia is believed to be the first Singaporean Captain.

"I was from the military, the Republic of Singapore Air Force for 22 years...and then I joined commercial. I joined Silkair for three years before coming to Jetstar...I was the first female Singaporean pilot to be recruited by Silkair," she said.

Joining her in the flight deck was another woman, First Officer Camille Williams.

"I have not flown with a female captain before but probably won't be any different. We have all had the same training but different conversations perhaps," she said.

Most of the 80-odd passengers on the Bangkok flight had no concerns about the female configuration.

"As long as they are qualified, I am very comfortable."

"Wish her all the best - but be careful, my life is in her hands."

"I don't know - mixed feelings - never get a female pilot before."

"I think it's alright."

In the end, perhaps the only one who might have felt a little left out was flight steward Derek Tan - the only male working on the flight. - CNA/de

Copyright © 2005MediaCorp News. All rights reserved.

Business Times - 14 Sep 2005

Jetstar, Tiger Airways to bid for seats on India routes

S'pore-India MOU provides for more capacity; lower fares may result

By VEN SREENIVASAN

(SINGAPORE) Fly to India for less than $300? It could become a reality if Singapore's budget carriers successfully bid for new capacity obtained recently for three Indian cities.

Jetstar Asia and Tiger Airways have confirmed that they will bid for some of the 2,760 extra seats available on the Singapore-Bangalore, Singapore-Hyderabad and Singapore-Kolkata routes.

Last month, Singapore and India signed a memorandum of understanding for more services between Singapore and the three cities.

Under the deal, Singapore carriers can now take an extra 1,480 passengers a week to Bangalore, 640 to Hyderabad and 640 to Kolkata. Indian carriers, meanwhile, will be entitled to bring 2,760 additional passengers a week to Singapore.

Singapore's Air Traffic Rights Committee (ATRC) will distribute the additional capacity among Singapore carriers.

Tiger Airways' chief executive Tony Davis said his airline is bidding for the routes. 'Tiger Airways has successfully established itself as Singapore's largest and most popular low fare airline,' he said.

'Having developed an extensive network of services from Singapore, Tiger Airways would welcome the opportunity of offering our low, low fares to travellers between Singapore and India. We are making a robust case to the ATRC that services to India are awarded to Tiger Airways,' Mr Davis said.

Ken Ryan, chief executive of Jetstar Asia, is equally positive about his budget carrier's plan to operate additional services to India.

'India is a very attractive destination and we'd look at all opportunities, keeping in mind what the market can bear and what resources we have,' he told BT.

The Qantas associate already operates thrice-weekly flights between Singapore and Kolkata and plans to increase the frequency of those flights due to strong demand.

There are now 232 weekly scheduled passenger flights and 16 weekly scheduled freighter flights between Singapore and India, operated by seven airlines: Singapore Airlines, SilkAir, Indian Airlines, Air India, Jet Airways, AirSahara and Jetstar Asia.

Despite recent new entrants such as Air Sahara, Jet Airways and Jetstar Asia, demand for seats has continued to grow dramatically. Civil Aviation Authority of Singapore figures show that in 2003-04, passenger and cargo traffic between Singapore and India grew 25 per cent and 23 per cent respectively to 1.5 million passengers and 86,000 tonnes. In the first half of this year alone, the number of visitors from India to Singapore rose 22 per cent to 287,987.

The resulting under-capacity has forced travellers to book tickets months in advance during the high season and kept fares among the highest - in dollar-per-kilometre terms - for any major international route.

On average, a return economy class ticket between Singapore and Mumbai costs about $800, depending on the season - the same as a return ticket from Singapore to London or Auckland, which are much farther.

In contrast, it costs half as much to fly back and forth from Hong Kong.

Not surprisingly, many travellers here would welcome the prospect of additional capacity and lower ticket prices to India.

Using the Airbus A320 planes currently flown by Tiger Airways and Jetstar Asia, the additional capacity available for the three cities would translate into eight flights per week to Bangalore and about three a week to Hyderabad and Kolkata respectively.

The planes can fly 5,700 km - easily within range of most major cities in India. But of course, Singapore Airlines and even subsidiary Silkair could also bid for the additional capacity.

At the same time, although the MOU on more air services has been welcomed, observers point out the Indian government remains reluctant to increase capacity to the high-demand gateways of Mumbai, New Delhi and Chennai.

The main reason for this is believed to be concern about the impact of competition on Indian state-owned carriers, who aren't just facing a squeeze from foreign competitors but also from new privately-owned domestic start-ups with greater access to capital, more modern aircraft and better customer service.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 19 Sep 2005

Jetstar Asia flies to Phuket

SINGAPORE - Jetstar Asia, a Singapore-based budget carrier backed by Australian flag carrier Qantas, said on Monday it will launch services to Phuket from October, further heating up competition in the sector.

The low-cost carrier, which will fly to the famed Thai resort four times a week, is offering a special one-way fare, excluding taxes, of $22 (US$13) for travel until Dec 15.

After Dec 15, a one-way ticket would cost $48 without taxes.

Rival budget carrier Tiger Airways, an affiliate of Singapore Airlines, is currently charging $29.99 for a one-way trip to Phuket, without taxes, for a flight on Oct 25, according to its website.

Taxes and other charges in both Singapore and Thailand could total around $80.

The budget fares - less than $200 return including extra charges - are well below the cost of a return ticket to Phuket charged by a regular airline of about $560, according to a local travel agency.

Phuket, renowned for its white-sand beaches, has emerged from the damage wrought by last December's tsunami disaster.

'With rebuilding almost complete, we are confident that demand will grow, occupancy rates of hotels will continue to increase and our new service will make commercial sense,' said Jeststar Asia chief executive Ken Ryan.

Jetstar Asia currently flies to Bangkok, Hong Kong, Kolkata, Manila and Taipei.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Sept 21, 2005
Why Tiger Airways flight was delayed

I REFER to the letter, 'One case of airliner 'technical fault' too many' (ST, Sept 20), from Mr Ong Eng Yiow regarding the incident involving Flight TR116 on Aug 31.

During routine checks, which are done on a frequent basis, a slight abnormality was detected in an engine on one of our Tiger Airways aircraft. As a precaution, the engine was replaced, and this took some time. As a result, that particular aircraft was removed from service.

We regret the inconvenience caused to Mr Ong, but Tiger Airways is committed to upholding the highest level of operational safety.

Punctuality is, however, also very important to us. Since starting operations a year ago, we have achieved an excellent punctuality record, with 94 per cent of all flights departing on time.

We sincerely regret the inconvenience caused to passengers as a result of the delay.

Capt Christopher Ward
Director of Flight Operations
Tiger Airways

Copyright © 2005 Singapore Press Holdings. All rights reserved.

21 September 2005

Tiger Airways eyes new routes in India and Southern China
By Matthias Chan, Channel NewsAsia

SINGAPORE : Budget carrier Tiger Airways is looking further afield as it aims to add new routes to its network.

It is now setting its sights on destinations in India, Southern China and Cambodia.

To prepare for expansion, Tiger Airways will more than double its fleet from four to nine aircrafts.

Celebrating its first anniversary, the carrier hopes to fly five times more passengers in its second year.

CEO Tony Davis met with the Air Traffic Rights Committee on Wednesday to discuss new routes to India.

But it is not just about new routes for the sake of expansion.

CEO Tony Davis has set very clear goals when it comes to new destinations.

"Individual routes that we operate have to make an operating profit within three years, otherwise those individual routes will go under review. And I'm pleased to announce that the routes that we are operating are performing very well," said Tiger Airways CEO Tony Davis.

To serve its new routes, Tiger Airways will take delivery of five new aircrafts next year to add to its existing four, with plans for another three in 2007.

It also hopes to fly some three million passengers in its second year, compared to 500,000 in its first year.

On rising fuel prices, Tiger Airways sees the situation as hurting its competitors more.

"We manage our cost base vigorously so we will continue to be the lowest cost airliner, offering the lowest fares with the best level of service. Others may increase their fares (due to the rising oil prices) but ours will remain attractive. So high oil prices are more of a concern for my competitors than for us," said Davis.

Tiger Airways is 49% owned by Singapore Airlines.- CNA /ls

Copyright © 2005 MCN International Pte Ltd

babystan> when will they start flying to S.China and India?

babystan> when will they start flying to S.China and India?

Lets wait for the news.....:D

Business Times - 22 Sep 2005

Jetstar, Tiger Airways clinch key routes to India

New flights to Bangalore and Kolkata may also trigger a price war

By VEN SREENIVASAN

(SINGAPORE) Airfares to India could start coming down with two of Singapore's three budget carriers poised to fly to key cities of Bangalore and Kolkata by year end.

Qantas associate Jetstar Asia has clinched five flights a week to the Indian IT hub of Bangalore, while Singapore Airline's associate Tiger Airways has obtained rights to operate thrice-weekly flights to the West Bengal city of Kolkata.

Asked if this could possibly herald $10 flights to India, Jetstar Asia's CEO Ken Ryan quipped: 'Definitely!'

That view is also echoed by Tiger Airways' CEO, Tony Davis, who said his airline could start flights to India within three months.

All this comes after Singapore and India signed a memorandum of understanding for more services between Singapore and the three cities last month. Under the deal, Singapore carriers can now take an extra 1,480 passengers a week to Bangalore, 640 to Hyderabad and 640 to Kolkata. Indian carriers, meanwhile, will be entitled to bring 2,760 additional passengers a week to Singapore.

Tiger Airways applied to fly to all three cities, while Jetstar only applied for Bangalore and Kolkata. It is believed that the Air Traffic Rights Committee granted Singapore Airlines (SIA) the remaining available rights.

In addition to five flights a week to Bangalore, Jetstar has also been granted an additional flight to Kolkata on top of its current thrice-weekly flights. In short, it will now have four weekly flights to West Bengal.

Mr Ryan revealed that Jetstar has also been granted the rights to operate four services a week to Denpasar in Bali. This comes after Indonesia allowed more flights by Singapore carriers to Bali recently in return for additional 5th freedom rights granted by Singapore to Garuda.

But it is the India flights which seems to be the focus of attention among industry watchers here.

'We are going to see a price war even before the first Jetstar and Tiger flights take off,' said S&P's aviation editor Shukor Yusof.

'The incumbents like SIA, the Indian national carriers, Air Sahara and Jet Airways could drop prices before these upstarts get into the market,' he added.

Airfares between Singapore and India currently average $800, depending on the season - the same as a return ticket from Singapore to London or Auckland, which are much farther.

The new routes are particularly good news for Jetstar Asia, which has been struggling somewhat after it failed to get lucrative routes to Indonesia and southern China.

'We have only been verbally informed so far, but this is excellent news for us,' said an elated Mr Ryan. 'Bangalore is a very popular destination.'

Tiger's Mr Davis seemed equally pleased despite not securing rights to Hyderabad or Bangalore.

'This is excellent news which is especially welcomed on our first anniversary,' he said. 'Kolkata is a perfect fit into the Tiger Airways network expansion strategy.'

Earlier in the day, during a press conference to take stock of Tiger Airways' first year of operation, Mr Davis revealed that the budget carrier had flown 500,000 passengers during its first year, and would carry three million passengers in its second year.

He declined to reveal financial numbers, but hinted that the airline had yet to show a profit.

'This is an expensive business and we are still in the heavy investment phase,' he said. 'One cannot expect to make profit in the first year.'

Mr Davis said his airline was managing the fuel issue well by lowering its overall costs.

'The higher oil price is creating a bigger differentiation between traditional and low-cost airlines,' he said. 'While fares on traditional airlines go up with fuel surcharges, we can offer the same low fares with our lower cost base.'

Tiger had earlier said it would not impose a fuel surcharge, preferring to rely on yield management instead. On the other hand, Jetstar Asia has imposed fuel surcharges.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

$10 ticket to India? So cheap? how could this be???

hya i wonder that to:)

how do the LCCs survive like? i mean 10$ to India,oil price is up and alot of competition.

anyway its good for us consumers;)

I believe $10 airfare exclude fuel + misc charges and only for first 100 tickets sort of stuff :)

sounds like a promotional offer :yes:

i think so to:yes:

time to book your tickets and end up in Kolkata;) :D :)

Business Times - 23 Sep 2005

COMMENTARY
Indian boost for Asean budget airlines

With agreements on more flights between Singapore and several major Indian cities, air ticket prices should start tumbling soon

By VEN SREENIVASAN
SENIOR CORRESPONDENT

WHAT seemed improbable just a year ago has happened. In a few months, travellers could buy air tickets between Singapore and selected Indian destinations at a fraction of the exorbitant prices they are currently paying.

What seemed like a tiny crack in the door when India allowed Jetstar Asia to operate thrice-weekly flights to Kolkata in West Bengal has been followed by a more measured opening up.

On Wednesday, the Singapore Air Traffic Rights Committee informed Jetstar Asia that it had been granted five flights a week to the Indian IT hub of Bangalore. Jetstar also got an additional flight to Kolkata.

Meanwhile, Singapore Airlines' low-cost associate, Tiger Airways, succeeded in clinching three flights a week to the West Bengal city. In all, Jetstar Asia and Tiger can operate seven flights a week to Kolkata.

For many observers, the opening-up of Bangalore is particularly significant.

After all, it's the leading South Asian IT hub, where many of the world's leading multinational and domestic software houses and backrooms processing operations are located. This cosmopolitan city in Karnataka is also the fourth most popular inbound destination for international business travellers going to India.

The door to the Indian aviation market may still not be wide open yet, but the entry of two foreign budget carriers into two major Indian cities seemed unimaginable even a few years ago.

All this comes after the two countries signed an agreement for more flights between Singapore and the Indian cities of Kolkata, Bangalore and Hyderabad last month.

Under the deal, Singapore carriers can fly 1,480 more passengers a week to Bangalore, 640 extra to Hyderabad and 640 more to Kolkata. Indian carriers will be able to bring around 2,760 additional passengers a week to Singapore. Airlines from both countries will also have additional 'fifth freedom rights' - the ability to pick up passengers or cargo in each other's territory en route to other destinations.

There are now 234 weekly scheduled passenger flights and 16 weekly scheduled freighter flights between Singapore and 11 Indian cities operated by seven airlines. Despite recent new entrants such as Air Sahara and Jet Airways, demand for seats has continued to grow at a dramatic rate. Passenger and cargo traffic between Singapore and India has been growing by 20-25 per cent in the last two years, and in the first half of this year alone, the number of visitors from India to Singapore rose 22 per cent to 287,987.

The resulting severe undercapacity has kept fares between the two countries at among the highest levels - in dollar-per-kilometre terms - for any major international route.

And this undercapacity has been largely due to the Indian government's reluctance to open up its skies for fear of harming national flag carrier Air India and domestic airlines, both of which are badly in need of fleet renewal and expansion. Already, about 80 per cent of traffic to and out of India is carried by non Indian carriers such as Singapore Airlines, Emirates and Lufthansa.

The liberalisation has come under the tenure of current Minister for Civil Aviation Praful Patel. Besides allowing new private airline start-ups, opening up its skies to more foreign carriers and tying up numerous bilateral air rights agreements across the globe, Mr Patel's ministry has also been actively courting foreign participation in both aviation infrastructure and airline start-ups.

Tiger Airways and Jetstar Asia are just the latest beneficiaries of these winds of change.

But India still has some way to go. After all, its three most popular markets of Chennai, Mumbai and New Delhi still remain largely protected.

Nevertheless, the entry of the two Singapore budget carriers heralds a new era for this country of over one billion people, 90 per cent of whom have never been anywhere close to an aircraft or airport.

The genie is now out of the bottle and there is no turning back.

The latest developments could prompt other foreign budget carriers like AirAsia - Asia's largest budget carrier - to push for rights to operate to India. On the other side of the coin, the numerous Indian budget start-ups will also want changes to the Indian rules which currently bar them from operating international routes for the first few years.

All this will no doubt bring down the fares travellers in South-east Asia cough up for the four or five-hour flights to India.

In Singapore, if the recent response of incumbents is any guide, a price war could erupt even before the first budget flights take off. In fact, the heat was already on last month, when Air Sahara started selling return tickets to New Delhi at under S$150 and Jetstar offers tickets to Kolkata at prices averaging S$180.

More importantly, India's opening-up could prove to be a much needed shot in the arm for the Southeast Asian budget airline industry, whose growth seemed to be in danger of hitting the brick wall of regional protectionism just months ago.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 23 Sep 2005

Jetstar Asia, Valuair announce new flights to Bali, Bangalore

SINGAPORE - Singapore budget carriers Jetstar Asia and Valuair on Friday announced new flights to the Indian city of Bangalore and Indonesia's Bali island, but a Valuair service to Perth will be scrapped.

The announcements by the two carriers, which merged in July but still fly under their own brand names, came two days after rival Tiger Airways said it will add southern China, India and Cambodia to its network.

Valuair, the first regional discount carrier to fly to Perth, will terminate its service to the Australian city from Oct 10 onwards to focus on Asian destinations.

Aside from starting a service to Bali, Valuair will launch a third daily flight to Jakarta by late October and a daily service to Surabaya, Indonesia's second largest city, from Oct 23 onwards.

'We're an airline in transition and changes will need to be made from time to time,' said Ken Ryan, Valuair's chief executive.

'We're on a clear path to success now and it's essential we're focusing on the most suitable routes. Perth is not a priority for Valuair moving forward,' he said.

Mr Ryan, who is also the chief of Jetstar Asia, said the five-times-weekly service to Bangalore will allow the Qantas-backed carrier to tap the growing affluence in India's technology capital.

'With the rising wealth in Bangalore, we're confident that we'll also appeal to travellers who would come to Singapore for long weekends or use the Jetstar Asia service for onward holiday destinations such as Phuket or Hong Kong,' he said.

Jetstar Asia will also add an additional flight to Kolkata which means it will fly four times weekly to the Indian city by late October.

The carrier currently flies to Bangkok, Hong Kong, Kolkata, Manila and Taipei and will start flying to Thailand's Phuket island from Oct 25.

Valuair now flies to Bangkok, Hong Kong, Jakarta and Perth.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

just surf to Jetstar website. Tickets to HK used to be $48 - $68... now from $77 (Exclude Fuel Surchange and Misc Charges). :(

just surf to Jetstar website. Tickets to HK used to be $48 - $68... now from $77 (Exclude Fuel Surchange and Misc Charges). :(

Aiyo.....there goes my HK trip..... :bash:

Maybe I should look at Taipei now.....:yes:

talking about Taipei, when do you think HW would come back to this forum? Would you be able to persuade him?

talking about Taipei, when do you think HW would come back to this forum? Would you be able to persuade him?

No idea.....No time to persuade him also.........:)

alright... :(

i think so to:yes:

time to book your tickets and end up in Kolkata;) :D :)

oh I dunno drwho....

I would prefer visiting Mumbai or New Delhi from what I've seen and heard, and maybe Chennai too....

oh well...I have to visit India one day, just as I did with China :D

Sept 24, 2005
Valuair pilots face $2,000 pay cut if they opt to stay
More than 30 are offered new terms by merged firm

By Arthur Poon

VALUAIR pilots were yesterday offered a stark choice by their new bosses: Take a $2,000 pay cut, or leave.

The low-cost airline's pilots and crew have been in limbo since it was announced two months ago that Valuair and Jetstar would be merging under a single holding company, Orange Star. Many believed they would lose their jobs. Some staff even resigned.

Yesterday, more than 30 Valuair pilots were summoned to Jetstar's office at Changi Terminal 1 for a meeting with Mr Ken Ryan, chief executive officer of Jetstar and Orange Star, to find out what terms they would be offered.

When they emerged 1 1/2 hours later, there were many dejected faces.

'Jetstar had better start looking for new pilots,' said one.

Most declined to comment on their new contractual terms, but one unhappy pilot said: 'We are staring essentially at a pay cut.'

He said ex-Valuair captains and first officers who fly an average of 70 hours a month will take home $2,000 less if they join Jetstar, even though they may still be flying planes under the Valuair banner.

The Straits Times understands that a Jetstar captain takes home $10,000 in basic pay. Pilots who fly more than the stipulated minimum of 55 hours a month receive $235 an hour overtime. First officers earn about 60 per cent of a captain's pay. Both get 30 days of annual leave.

Jetstar pilots are also paid an unspecified lump sum in medical and dental benefits, while Valuair pilots get $50 for dental and co-pay 20 per cent of their medical expenses.

After the meeting, five Valuair pilots were seen huddled at Changi's Starbucks Coffee outlet, poring through their contracts.

Earlier, Mr Ryan stressed that the new contract is no different from those offered to Jetstar pilots, although he declined to reveal the terms.

'We want to treat all people equally and fairly, with the same terms and conditions, and not show favour to any group of individuals,' he said. 'What we are offering to Valuair pilots is what Jetstar pilots have since Day 1.'

But that did little to lift the gloom. 'It is cold comfort to know we get the same treatment as our Jetstar counterparts,' one Valuair pilot said. They have about one week to consider the offer.

Asked if he expects the pilots to take up the new package, Mr Ryan said: 'If they choose to go, it's unfortunate but it's their choice. We aren't forcing people out, we want them to stay.'

Valuair's 80 crew members will find out next week what terms they will be offered. Another 70 support staff are still not sure of their fate.

arthurp@sph.com.sg
Copyright © 2005 Singapore Press Holdings. All rights reserved.

Sept 24, 2005
NEWS ANALYSIS
Best to fly as two separate carriers - for now

By Karamjit Kaur
Transport Correspondent

ONE airline gives you food and a comfortable flight with more legroom. The other gives you cheaper fares but less space to stretch your legs and no food or drinks - unless you pay extra.

So what do passengers get if these two airlines merge, as Valuair and Jetstar Asia have done?

When the dust settles - and this could take six months or longer - what could emerge is an airline that resembles SilkAir, a carrier that has defied everyone's predictions and survived the budget aviation revolution.

According to sources, Jetstar will likely retrofit its planes and take away some seats so that passengers get more legroom. Mr Ken Ryan, chief executive officer of both Jetstar and the new merged company, Orange Star, told The Straits Times yesterday that this was a possibility.

It is also been said that the merged airline will partner Qantas and offer 'inter-line' facilities, to cater to passengers who fly on more than one airline to reach their destinations.

So, for example, a passenger could fly Qantas from Sydney to Singapore, then transfer to a Jetstar aircraft and travel on to Hong Kong without having to check in again.

SilkAir has a similar 'inter-line' arrangement with parent company Singapore Airlines.

'We are actively exploring this option,' Mr Ryan said. 'But we will do it only if it's in the best interests of Jetstar and Qantas.'

A tie-up with Qantas, which is pumping more than $50 million into Orange Star, is a strong possibility now that Mr Ryan has confirmed that Jetstar will not use the new low-cost terminal being built at Changi.

The terminal, he said, does not offer the company any significant benefits.

The fact is, Jetstar cannot use the new terminal if it wants to carry Qantas passengers because there is no facility to transfer luggage from the budget terminal to the main terminals.

If Jetstar is to carry Qantas passengers, it also makes sense for the airline to upgrade its level of service, because a passenger used to the frills that come with a full-service carrier may not be too thrilled when he suddenly has to go without food or legroom.

In the end, it makes sense that Jetstar and Valuair will become one. 'Ideally, we would like to have a single model. We are looking into this,' Mr Ryan said.

The first step was taken yesterday when Valuair pilots were offered the same contracts as their Jetstar counterparts. Cabin crew and other employees will also be told of their new terms of employment from next week.

But while the plan is to eventually fly under one name - likely to be Jetstar Asia - total consolidation takes time. For now, it makes sense to operate as two separate carriers.

Valuair already has a foothold in Indonesia and will continue to expand its services there. By the end of next month, it will be flying three times a day to Jakarta, once a day to Surabaya, and four times a week to Bali.

Meanwhile, it will drop Perth and suspend flights to Xiamen and Chengdu in China.

This will leave Jetstar to concentrate on India and other markets. It will soon start flying five times a week to Bangalore and will up its Kolkata service from three to four flights a week.

It is a strategy that makes itself, really. Valuair has the rights to fly to Indonesia and Jetstar does not, because in March the Indonesian government imposed a blanket ban on low-cost foreign carriers flying to key cities to protect its own airlines.

So how soon a single airline will take to the skies depends not only on how fast Valuair and Jetstar can consolidate their businesses, but also how long it takes for the governments in the region - particularly the Indonesians and Chinese - to be comfortable with the merged entity.

karam@sph.com.sg
Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 29 Sep 2005

Jetstar Asia may be doing a SilkAir in the region

Qantas has applied for code-share arrangements with Jetstar: report

By VEN SREENIVASAN

(SINGAPORE) Is Jetstar Asia evolving into a regional carrier for Qantas, just as Silkair is for Singapore Airlines?

That is the question many in the aviation sector are asking, amid reports that the Australian national carrier has applied for code-share arrangements with its Singapore-based budget carrier.

Australian media reports yesterday said Qantas has applied to the International Air Services Commission to start code-share arrangements with Jetstar Asia to India and Thailand.

This would enable Qantas passengers on mainline flights in Singapore to transfer seamlessly to Jet star Asia's thrice-weekly Singapore-Kolkata-Singapore services.

The Qantas application said the proposed code-share flights will carry traffic between India and Australia, as well as passengers stopping over in Singapore.

In Thailand, Qantas plans to code-share on Jet star Asia's services to Phuket and some services to Bangkok.

The move comes just months after Qantas pumped in more than S$50 million to recapitalise Jet star Asia and take over discount carrier Valuair, placing them under the Orange Star umbrella in Singapore. Qantas owns 44.5 per cent of the merged entity, which analysts expect to eventually operate as a single pan-Asian airline. Valuair and Jetstar last week announced several potential lucrative new routes to populous destinations in India and Indonesia.

But earlier this week, Jetstar Asia's chief executive Ken Ryan denied that Jetstar Asia is evolving into a Silkair-like regional operator for Qantas.

'Qantas is our major shareholder and an important partner, and from time to time, we will do certain things with Qantas,' he told BT. 'But that does not mean we are moving away from our low-cost model.'

Still, it is hard to see how a full-service, long-haul carrier like Qantas can code-share with a no-frills budget carrier like Jetstar Asia unless the latter modifies its business model and charges higher fares.

Australian media reports yesterday cited Qantas officials in Sydney as saying the code-shares are on routes that Qantas does not fly in its own right and has no intention of flying. They said the code-shares will allow Qantas to extend its network and give customers more options.

'This shows an ability for Qantas to interact with a partially-owned entity that has a network offering that is complementary to what Qantas offers, operated under a brand that Qantas supports,' said Qantas chief financial officer Peter Gregg.

Meanwhile, Jetstar Asia's rival Tiger Airways claims it is Singapore's sole surviving low-cost carrier.

'What the code-sharing arrangement means is that Jetstar Asia will effectively cease to operate independently as a low-cost carrier,' said Tony Davis, chief executive of the Singapore Airlines' associate. 'It will become the regional services arm of Qantas in Asia.'

Mr Davis said the latest reports show that Qantas aims to extend its reach into the regional aviation market via the 'back door'.

He noted that Qantas had increased its fares to Perth since Valuair - which it took over - stopped flying to Perth.

Mr Davis insisted that his airline will stick with the low-cost carrier model.

Tiger Airways, which is 49 per cent owned by SIA, now flies to 10 cities in six countries.

It secured rights to operate three flights a week to Kolkata in India recently, and will start flights to Krabi in southern Thailand early next month.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Sept 30, 2005
Tiger claims to be sole low-cost carrier left here

By Karamjit Kaur
Transport Correspondent

AND then there was one...at least that is what Tiger Airways believes.

Tiger chief executive officer Tony Davis sparked a war of words by declaring on Wednesday that the Singapore Airlines-backed carrier is Singapore's sole remaining low-cost airline, following Qantas' decision to codeshare with its subsidiary Jetstar Asia.

Jetstar was quick to hit back. Its chief executive officer, Mr Ken Ryan, told The Straits Times on the same day: 'We are and will remain a low-fare carrier. But we will also take advantage of additional opportunities that may come our way...'

And codesharing with Qantas, said Mr Ryan, is 'a good business opportunity'.

Codesharing is a common practice by airlines to expand coverage and flight frequency without having to put in additional resources of their own.

The Qantas-Jetstar deal, for example, means that with a single Qantas ticket, a passenger flying from Sydney to Kolkata can take a Qantas 747 to Singapore, then transfer to a Jetstar plane to fly from Singapore to India, without having to check in again.

Since Qantas' only India service flies to Mumbai, and Jet- star does not fly to Australia, the deal benefits both airlines.

However, Mr Ryan stressed that the deal, which must first be approved by Australia's International Air Services Commission, will have no bearing on the principle on which Jetstar was founded - to offer low fares and good service.

Tiger's Mr Davis disagreed. In his statement, he said the arrangement with Qantas means Jetstar will 'effectively cease to operate independently as a low-cost carrier. It will become the regional services arm of Qantas in Asia'.

This, coupled with the recent Valuair-Jetstar merger, leaves Tiger as Singapore's only surviving low-cost carrier, he declared.

He also described the codeshare move as a 'backdoor' way for Qantas to enter the Singapore and regional aviation market, and suggested it will lead to higher fares.

Mr Ryan said he was amused by Mr Davis' comments.

'I am impressed that Tony is able to predict our fares. He can claim whatever he wants but at the end of the day, it's the travelling public that will judge us based on our fares and level of service. We are confident they will continue to support Jetstar.

'I am fascinated that Tony is more interested in our business than his own.'

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Oct 1, 2005
Tiger Airways' sale of Manila-Macau tickets

By Karamjit Kaur
Transport Correspondent

AGAINST THE RULES?
S'pore has no traffic rights for the route, says PAL

APPROVED IN PRINCIPLE?
Green light from authorities secured, says Tiger

PHILIPPINE Airlines (PAL) has accused Singapore's Tiger Airways of breaching regulations by selling Manila-Macau tickets even before the route receives the approval of the Philippines' Civil Aeronautics Board (CAB).

But Mr Tony Davis, chief executive officer of the budget airline, responded yesterday, saying: 'We believe we have the necessary approvals to operate the route, which is why we are selling tickets now.'

Tiger started flying from Singapore to Clark Field, about an hour's drive north of Manila, in April this year.

The Straits Times understands that it also has in-principle approval from the Philippine authorities to operate a Clark-Macau-Clark service, the airline's first route outside Singapore.

An industry insider said it is common in some countries for written approval to come just a day or two before actual flights start.

Tiger, which is backed by Singapore Airlines, intends to start the service on Oct 31.

In a DowJones Newswires report yesterday, a spokesman for the Philippine national carrier accused Tiger of making the formal application to the CAB only after it had started selling tickets in July.

He further alleged that the budget carrier filed the necessary papers only when the Philippine civil aviation authority found out about the ticket sales.

The spokesman said: 'Under the Philippines-Singapore bilateral air agreement, Singapore carriers like Tiger Airways do not have traffic rights to fly to Macau from any Philippine point.

'What now is the legal basis of Tiger Airways' action to sell tickets on a proposed Clark-Macau-Clark service?'

But Mr Davis said that services to and from Clark are outside the bilateral air agreement.

He said the Philippine government is eager to develop international services at Clark, which is why Tiger has recently increased its service from three to seven times a week.

He accused PAL of trying to 'frustrate' Tiger's aim to offer Filipinos low fares to Macau.

'This is ironic given that PAL does not intend to operate between the Philippines and Macau,' he said.

Even if Tiger does not compete directly with PAL on the Clark-Macau service, the proliferation of budget carriers in the region worries many national carriers.

The Indonesian government, for example, has banned foreign budget airlines applying to fly to the Indonesian cities of Jakarta, Medan, Surabaya and Denpasar, to protect its own aviation industry.

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Interesting quote from the ST.

"the proliferation of budget carriers in the region worries many national carriers."

It was reported that Air Asia wanted to open up a hub in Singapore but was denied approval by the sg authorities.

Its a shame no? The most successful, most largest, only profitable, only publicly listed budget carrier in South East Asia not allowed to operate a hub in Singapore.

Whilst Air Asia has hubs in Jakarta and Bangkok besides from its main hub in Kuala Lumpur.

Well, they wanted to fly out of Seletar Airport, but the authorities want Air Asia to use Changi.

It all boils down to national interest.

Anyway, ThaiAir Asia is flying the lucrative Bangok-Singapore route :yes:

Business Times - 04 Oct 2005

Qantas seeks to expand Jetstar brand globally

Jetstar is looking at a plan for an int'l carrier that can fly on holiday routes

(MELBOURNE) Qantas is looking to expand its low-cost domestic carrier Jetstar into international markets, Qantas chief executive Geoff Dixon said at the weekend.

Qantas and Jetstar are working on a proposal for a two-class international carrier based in Australia, servicing holiday routes where Qantas does not operate.

Mr Dixon said there were major opportunities to expand the Jetstar brand internationally. 'Jetstar is developing a proposal for a two-class, value-based international carrier based in Australia,' Mr Dixon told investors at the Merrill Lynch Australia investment conference.

The carrier will operate on point-to-point markets not served by the full-service Qantas product. 'Initial analysis indicates that this airline could deliver significant cost advantages over the core Qantas operations and many of the competitors, and achieve quick profitability,' Australia's wire service AAP reported Mr Dixon as saying.

'This regional strategy is all about growth in predominantly leisure-based markets in which Qantas has withdrawn over the last 10 years following privatisation and our need to get the company on a very sure financial footing,' he said.

Jetstar, wholly-owned by Qantas, was launched in Australia in May 2004.

Qantas is also focused on developing the Jetstar brand in Asia through its Jetstar Asia operations, with Mr Dixon saying the recent merger of Jetstar Asia and Singapore budget carrier Valuair had provided the combined group with significantly increased scale to pursue expansion opportunities in the region.

'We see significant potential to develop the Jetstar brand in Asia through Jetstar Asia,' he said. 'We're also evaluating a number of options to create a pan-Asian system of value-based airlines which would be able to take advantage of traffic rights available in different ports and provide greater connectivity for customers.'

Qantas has a 49 per cent stake in Jetstar Asia with the remainder held by Singaporean investors.

Qantas itself is expanding its presence in growing point-to-point markets, commencing services to Shanghai and Mumbai and announcing new flights to Beijing and San Francisco.

Meanwhile, Qantas said yesterday that about 600 people had changed plans to travel to Bali after bombings on the resort island killed as many as 26 people and wounded 122 people.

'About half have chosen to use their tickets to fly somewhere else, and the other half have just cancelled their tickets,' a Qantas spokesman said.

He said it was too early to estimate the financial costs since the cancellations were ongoing, with the company allowing passengers until Oct 30 to change their plans. Qantas operates about 20 flights into Indonesia a week, including 11 flights to Bali. - Bernama, Reuters

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

This story was printed from TODAYonline

Time to review budget airline plan

... as Singapore's high-flown plans for low cost carriers prove to be unworkable

Wednesday • October 5, 2005

MAYBE it is time for Singapore to rethink its involvement in the low cost airline business. It seems to me the odds are stacked against success in the near future.

Valuair has learnt this hard lesson and done the right thing by merging with Jetstar Asia. Jetstar has done one better by slowly changing its business model to become a hybrid airline, aligning itself more closely with major shareholder Qantas.

I would expect Jetstar Asia to start accepting cargo and even put a small business class in front. That's the only way to save itself and to serve the larger Qantas interest of having a regional network.

Only Tiger Airways seems to be holding firm. Its CEO claims that it is the only true low cost carrier (LCC) left in Singapore.

It remains to be seen whether this is a vindication of its model, or simply a reflection of the fact that other carriers have realised that the LCC model cannot thrive here.

In any case, the classic LCC model, the way it was applied in Singapore — with brand-new large capacity planes, high aircraft leasing charges and cost of operation, and only origin and destination (O & D) traffic to depend on — was bound to struggle.

In June 2003, I was asked to do a feasibility study on starting a low cost airline in Singapore.

The brief was very simple: What would it take to have a low cost airline here which would make a profit after six months of operation, flying only to destinations where liberal traffic rights already existed, and to smaller airports in the region where existing carriers could not fly to?

In addition, average fares would have to be at least 50 per cent below the lowest airfares offered by other airlines — yet it would have to be able to break even at 70 per cent load factor.

The study showed that this was possible only if 100-seater used jet aircraft were operated, costing less than a third the lease rate of a new Airbus 320, which all Singapore LCCs use. Seletar Airport would have to be the home base for this airline, which would have to fly high-frequency services to regional destinations not more than three hours' flight time away. It would have to form partnerships with similar small airlines in the region to forge reciprocity.

For various reasons — one being the unavailability of Seletar Airport — the promoters of this venture chose not to proceed. But what this clearly showed me was that a LCC done any other way would struggle financially.

To me, the question now is whether Tiger Airways should continue to exist in its present form or change.

Tiger was created to counter Valuair and Jetstar. Now that Jetstar is likely to become another full service airline like SilkAir, the situation has changed. Should Singapore Airlines now be looking into beefing up SilkAir to take on the new hybrid Jetstar/Valuair?

Singapore is a unique case. As far as I know, no city-state has succeeded with a low-cost airline, let alone by flying brand-new planes over long distances internationally at bargain basement fares.

We had the chance to make LCC a success here, but without anti-competitive legislation and a pro-LCC environment like in Malaysia (where Malaysian Airlines was basically told to keep their hands off Air-Asia), LCCs will struggle here.

Perhaps we need to consider doing two things now. First, go back to the drawing board and nurture the creation of a smaller, leaner entrepreneurial-driven LCC operating out of Seletar Airport.

Second, support SilkAir and Jetstar/Valuair by giving them the traffic rights to enable them to get back into the black.

Tiger, meanwhile, seems determined to do it its own way.

Competition between money-losing airlines is destructive competition. The only way forward is to nurture healthy airlines that can enhance our position as an aviation hub. There is an opportunity now to do this, in view of the prevailing pro-consolidation and rationalisation mood.

The authorities, too, need to step in and require new airlines to become cash positive, if not profitable, within a specific period.

The writer is an aviation consultant and senior tourism and hospitality executive in a public-listed company in Singapore.

Copyright MediaCorp Press Ltd. All rights reserved.

Business Times - 05 Oct 2005

M'sian firm seeks to start S'pore-Senai bus service

AirAsia distances itself from Johor airport shuttle bid

By OH BOON PING

(SINGAPORE) A little known Malaysian company is trying to start a two-way direct bus service from Singapore to Senai Airport in Johor, although authorities here have previously blocked such services.

When contacted by BT, Nabil Abd Kadir, the managing director of Nakiwa Sdn Bhd confirmed that the company is in the process of setting up the bus operations.

He claims his company is talking to Malaysian budget carrier AirAsia for the new venture.

AirAsia has, however, denied the two are in talks.

Mr Nabil said the application for an operating licence 'would be filed through our associate company in Singapore.'

He declined to disclose whether it had been filed or through which company here.

He said the frequency of the service, however, will depend on the number of AirAsia flights and its passengers here.

'AirAsia plans to fly Singaporeans to China from Senai Airport and I had offered our bus service to AirAsia to transport passengers between Singapore and Senai,' Mr Nabil was cited as saying in Malaysia's Business Times earlier this week.

'He (AirAsia chief Tony Fernandes) said he is open for further discussion,' Mr Nabil said.

Though talks are still in its preliminary stage, Nakiwa, with a fleet of 24 buses, hopes to launch the Singapore-Senai service with 10 buses by the end of this month.

The Malaysian daily also reported that Nakiwa, which had invested RM11 million (S$4.9 million) in this service, is expected to boost its fleet to 200 by October next year.

But Nakiwa is unlikely to realise its plans anytime soon.

AirAsia has distanced itself from the purported bus venture.

'We are not in any form of negotiations with Nakiwa,' AirAsia spokesman Jeamie Lee told BT.

'I have checked with the management to confirm the news, and found the news to be untrue,' she added.

The new Malaysian bus service could also face hurdles in Singapore.

In March last year, Singapore's Ministry of Transport stopped a direct ground shuttle service from Lavender MRT station in Singapore to Senai as it did not allow direct bus services between the Republic and the Malaysian airport except for passengers of Malaysia Airlines.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 06 Oct 2005

Tiger Airways secures funding for four new aircraft

SINGAPORE - Singapore Airlines Ltd's low cost carrier affiliate, Tiger Airways, on Thursday said it has secured full funding for four new passenger planes it has ordered.

The aviation capital arm of the Royal Bank of Scotland will fund Tiger Airways' purchase of four Airbus A320 planes on a sale and lease back basis, which involves the airline selling the four aircraft to the bank and leasing them back on long term operating contracts.

The airline did not provide further details about the funding structure.

The four aircraft, which will be delivered in 2006 and 2007, are part of a recently announced order by Tiger Airways for a total of eight new A320 aircraft from Airbus, which have a combined list price of over US$500 million, the airline added.

Tiger Airways said it intends to triple its fleet from the current four aircraft by the end of 2007 to enable the airline to fly four-five million passengers a year from its current half-a-million passengers.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

once the budget terminal opens...will be quite cool to spot them all lined up :cool:

Oct 13, 2005
Indonesian budget airline flying to S'pore

By Arthur Poon

INDONESIAN budget carrier AdamAir has pipped its rival Awair to secure air rights to Singapore.

AdamAir, which took to the skies in December 2003, will ply the Singapore-Jakarta route three times a day from Oct 28.

Its Indonesian rival Awair, backed by Malaysia's AirAsia, dropped its application for the same route after the Civil Aviation Authority of Singapore (CAAS) delayed giving it the green light in March.

At that time, it was seen as a 'tit-for-tat' policy after Indonesia imposed a blanket ban on foreign budget carriers including Singapore-based Tiger Airways and Jetstar Asia flying to its key cities such as Medan, Surabaya, Jakarta and Bali.

It is understood that Indonesia wants to give state-owned airline PT Garuda Indonesia time to prepare for increased competition and so stopped giving out new landing rights to budget carriers.

But Valuair flies twice daily to Jakarta and Tiger to Padang. Both obtained their air rights before the ban in March.

Singapore will be AdamAir's second international destination after Malaysia's Penang, said AdamAir's executive vice-president Dave Fikarno. The airline is offering passengers transfer to 15 Indonesian cities on its route network.

An AdamAir return ticket to Jakarta costs $231 including taxes, while Singapore Airlines (SIA) and Valuair charge $489 and $329 respectively, according to their websites.

Standard & Poor's aviation editor Shukor Yusof said: 'AdamAir's success in getting the rights to fly to Singapore probably stems from its future plans to fly direct from Changi to Bali, Medan and Surabaya.'

Awair is believed to have failed to provide additional documents in its unsuccessful bid to get approval, he added.

'Perhaps Awair was unaware of certain Singapore regulations,' Mr Shukor said.

According to CAAS, passenger traffic between Singapore and Indonesia reached 3.3 million last year, up from 2.7 million in 2003.

SIA has 56 weekly flights to Jakarta, 21 flights to Denpasar and six to Surabaya. Valuair is also preparing to start daily services between Singapore and Surabaya from Oct 23.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Oct 15, 2005
Why no-go for Awair, while Adam Air gets nod

BOTH are Indonesian carriers and both want to fly here. But while Adam Air got the green light on Oct 5 for its Singapore-Jakarta route, Awair is still waiting.

Why? Simply because Adam Air, which will start its Singapore-Jakarta service in two weeks, is not a budget airline, the Civil Aviation Authority of Singapore (CAAS) said yesterday.

Awair, on the other hand, is a budget carrier, and until Indonesia lifts a ban on foreign budget airlines flying to four key Indonesian cities, the Singapore authorities will not let them fly here either.

Indonesia blocked access to Jakarta, Medan, Surabaya and Denpasar for foreign budget carriers in March this year to protect its fledgling air transport industry.

As a result, the application to the CAAS from Awair, which is 49 per cent owned by Malaysia's AirAsia, has been gathering dust.

Awair has since resorted to the next best thing and now operates between Batam and Jakarta instead.

Adam Air's spokesman here told The Straits Times that the return fare to Jakarta will be $231, including taxes.

Passengers will get assigned seats as well as light snacks and mineral water.

Each passenger is allowed a maximum luggage allowance of 25 kg, significantly more than the 15 kg usually offered by budget airlines.

Speaking to an Indonesian publication last month, Adam Air's president Adam Adhitya Suherman described it as a 'boutique' airline.

He said: 'We target middle-class travellers. We are a three-star airline with five-star service.'

To start with, Adam Air will ply the Singapore-Jakarta route once a day, but plans to expand to three flights a day.

The new route enables the airline to offer passengers from Singapore the chance to connect onward to 15 Indonesian cities on its network.

KARAMJIT KAUR
Copyright © 2005 Singapore Press Holdings. All rights reserved.

17 October 2005

AirAsia complains over discrimination on landing rights

KUALA LUMPUR : Malaysian budget carrier Air Asia has accused Singapore of discrimination after the city state awarded long sought-after landing rights to a rival Indonesian carrier, a report said Monday.

The Civil Aviation Authority of Singapore (CAAS) this month granted Indonesia's AdamAir the rights to three daily flights from Jakarta after stalling an application from AirAsia's Indonesian affiliate Awair.

"Suddenly, AdamAir gets the right to fly to Singapore which appears to be a decision that discriminates against us," AirAsia's chief executive Tony Fernandes told the Financial Times newspaper.

A dispute with Jakarta has seen Singapore banning new Indonesian low-cost carriers, but the CAAS said it had given AdamAir the greenlight because it did not "consider the airline a low-cost carrier", based on its operating model.

However, the airline, which offers assigned seats and light snacks, sells tickets to Singapore that are significantly cheaper than full-fare carriers, and Fernandes accused the republic of trying to protect its own low-cost carriers by barring AirAsia.

Singapore "is a country that is supposed to welcome open competition, but they are scared of us" because the city state's own budget carriers are struggling, he said.

While AirAsia reported its net profit for the year to June as 111.63 million ringgit (29.6 million dollars), budget airline Tiger Airways, a unit of the state-owned Singapore Airlines, and JetStar Asia, in which the government has a stake, are unprofitable, said the newspaper.

"A bigger presence of AirAsia in Singapore would represent a serious threat to Singapore's low-cost carriers. AirAsia has been able to achieve a successful pricing model that seriously undercuts its rivals," a Hong Kong-based aviation analyst was quoted as saying.

Fernandes said Awair would resubmit its application to fly the lucrative Singapore-Jakarta route, but the CAAS said restrictions on Indonesian low-cost carriers were "still in place".

AirAsia was launched as a budget carrier in December 2001 with just two aircraft and has since become a significant regional player, with its business model increasingly imitated by national carriers and a host of new low-cost entrants.

The airline covers most of the major cities in Southeast Asia, with the carrier's network linking Malaysia, Thailand, Indonesia, Singapore, Macau, Vietnam, Cambodia, Xiamen in China and the Philippines. - AFP /ch

Copyright © 2005 MCN International Pte Ltd

bleh... there's always Air Asia out of Senai airport in JB.. And Awair fly out of Batam.
Both to Jakarta it costs the following below:

From Batam I found fares from $25.1272 SGD or 150,000 Rupiah
From JB via KL its RM59.99 + RM9.99 or RM 79.98 which is $35.9109 SGD

Much cheaper than what is currently offered in Singapore, lowest fair being Adam Air
at $48 US or 81.3485 SGD

Business Times - 18 Oct 2005

Clearer skies for Singapore budget carriers

JUST when the going was getting increasingly turbulent, Singapore's low-cost carriers (LCCs) have received a lifeline from a most unexpected source: India.

In a move which surprised many industry observers, India offered Singapore-based carriers 2,760 extra seats on routes from Singapore to Bangalore, Hyderabad and Kolkata. The Air Traffic Rights Committee subsequently granted Tiger Airways and its rival Jetstar Asia critically needed new routes to two of these three destinations.

Tiger secured three flights a week to Kolkata, while Jetstar clinched the rights to operate five weekly flights to the Indian IT capital of Bangalore. The Qantas associate was also given permission to bump up its Singapore-Kolkata flights to four per week, from the present three.

No sooner had this piece of good news sunk in when Jetstar's sister discount carrier, Valuair, obtained rights to operate flights to Denpasar in Bali and Surabaya.

This was in return for Singapore granting additional capacity and 'fifth freedom' rights to Garuda Indonesia and rights to Indonesia's AdamAir to operate Jakarta-Singaporeflights. Valuair already operates daily flights to Jakarta.

What a difference a few months can make. Just three months ago, the three Singapore LCCs - like their regional counterparts - were staring at bleak prospects arising from rising fuel costs and closed skies. The new rights to destinations in India and Indonesia have dramatically changed their outlook.

While the latest developments are encouraging, more can be done to free up the commercial aviation regime around the region. While India and Indonesia have started selectively opening up their markets, China has yet to allow foreign discount carriers into its key cities such as Shanghai and Beijing. And more glaringly, there has been no movement on the old Singapore-Malaysia air services agreement to allow the entry of each other's LCCs.

So challenges for regional LCCs remain. Unlike Europe or the US, Asia-Pacific LCCs struggle to get unencumbered air space. For all their pronouncements of solidarity, manycountries in this part of the world remain driven by nationalist and protectionist instincts. Thailand is the proverbial 'low-hanging fruit' for the Singapore LCCs. But many of these routes are holiday destinations subject to seasonal variations in traffic. In contrast, American and European LCCs serve a steady stream of cost-conscious travellers and inter-city business commuters.

Meanwhile, the lack of a good network of cheap secondary airports and longer flying times put pressure on yields and leads to sub-optimal capacity utilisation. As a result Asian LCCs enjoy only a 20 per cent cost advantage over their full-service competitors, compared to 60 per cent enjoyed by their counterparts in the West.

This, and the absence of laws against unfair competition, makes them more vulnerable to predatory pricing from full-service carriers.

India and Indonesia have become unlikely saviours for some of these operators. But Asia's budget airline operators will be hoping that this liberalisation trend catches on around the region.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

This story was printed from TODAYonline

Qantas to expand Jetstar franchise

New budget airline part of 5-year plan to cut $3.8b in costs

Wednesday • October 19, 2005

Qantas Airways is planning to launch a sister airline to Jetstar — Jetstar International — which would fly from Australia to South-east Asia, China and possibly Japan in the second half of next year, according to a report in the Sydney Morning Herald.

The newspaper reported yesterday that Qantas' plans to hive off a large chunk of its international operations to its low-cost Jetstar franchise are "well advanced".

The budget airline, which will fly to destinations within 10 hours of Australia, forms a major part of Qantas' five-year plan to slash A$3 billion ($3.8 billion) from its cost base, said the daily.

The national carrier is understood to be looking at purchasing and leasing up to 100 new medium- and long-range aircraft for the new airline. Jetstar International is expected to be run separately from Jetstar, which itself will launch international flights to New Zealand on Dec 1, said the Herald.

It is expected the new carrier will take over less profitable international routes, such as Bali, Manila, Bangkok, Fukuoka in Japan and even Honolulu, the paper said.

The carrier is also expected to open up more routes into Asia from smaller capital cities, such as Adelaide and Perth.

Given the new Jetstar's longer range, it is speculated it will have two classes — economy and premium economy (or business). Aside from addressing Qantas' cost base, the new Jetstar is also aiming to stem the growing incursion of carriers such as Emirates and Singapore Airlines on air traffic into Australia, said the newspaper.

Qantas' share of the international market into Australia fell to 28.3 per cent from 30.4 per cent in the year to June.

Copyright MediaCorp Press Ltd. All rights reserved.

20 October 2005

Low-cost carriers need to focus more on branding: industry players
By Chua Chin Chye, Channel NewsAsia

SINGAPORE : All low-cost carriers bank on low fares as a major selling point, but industry players say that does not mean they can do away with branding.

They were speaking at an industry seminar on Tuesday, during which Tiger Airways shared how it intends to make its business thrive, despite high fuel costs.

McDonald's and Coca-Cola are big names with great brands, and low-priced products.

Industry watchers say that low-cost carriers can aspire to become great brands just like them.

Karthik Siva, Group Strategy Director, Ogilvy and Mather, Singapore, said, "The common complaint is always that an LCC ( low-cost carrier) is a commodity. It's not true at all. There are so many other commodities, categories which have become very commoditised, where you have very very strong brands. Where orange is a commodity, but you prefer Sunkist. If you are an LCC, while it's important to focus on low fares, you have to focus on the experience that you plan to deliver to your customers."

One low-cost carrier says it all boils down to giving customers a great experience, at a low price.

Tony Davis, CEO, Tiger Airways, said, "What we have to do is to make sure that consumers have a high level of trust in Tiger Airways. They know we are reliable, we are on time, that we deliver their bags to them when they arrive. And that we still offer the very lowest fares. And I think what we tried to do consistently is to under-promise and over-deliver."

Despite high oil prices, Tiger Airways has managed to resist imposing fuel surcharges, unlike its parent, Singapore Airlines.

Mr Davis said, "I think it's very likely that high oil prices will be with us for some time in the future. What we have tried to do is to make sure we (get) as much efficiency into the rest of our operations. We are using our aircraft more. We are getting more flights from each aircraft each day. That means our overall cost base is still coming down."

To keep unit costs down, Mr Davis says low-cost carriers need to increase the size of their operations, by adding more routes and optimising aircraft usage. - CNA/ms

Copyright © 2005 MCN International Pte Ltd

Business Times - 24 Oct 2005

Jetstar Asia flies to Phuket

SINGAPORE - Budget airline Jetstar Asia said it will fly to Phuket in Thailand four-times weekly from Tuesday, further boosting the resort island's recovery from last year's tsunami disaster.

'Phuket is solidly back on the map. All indications point to an economy that has settled down and is ready to accept a new phase in its tradition as a great resort destination,' said Jetstar Asia chief executive Ken Ryan in a statement.

He said that with hotel occupancy rates still recovering, it was time to 'recapture the excitement and beauty' of the island, famed worldwide for its exotic, white-sand beaches.

Jetstar Asia, which is backed by Australian flag-carrier Qantas, is offering a one-way fare without taxes of at least $30 for travel up to Dec 15, the statement said.

Tiger Airways, a rival budget carrier backed by Singapore Airlines, is already flying to Phuket.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Oct 25, 2005
ADAMAIR RIGHTS
Tiger chief: Decision flawed

By Arthur Poon

A SECOND budget carrier has hit out at Singapore's decision to allow Indonesia's AdamAir to fly here.

Tiger Airways' chief executive Tony Davis feels AdamAir should have been treated as a budget airline and barred in the same way that Singapore blocked Adam- Air's low-cost rival Awair from flying here.

The Civil Aviation Authority of Singapore (CAAS) has refused to grant routes to Indonesian budget airlines after Indonesia imposed a blanket ban on Singapore-based low-cost carriers in March.

Mr Davis said the CAAS' acceptance of AdamAir as a regular airline was 'flawed' as its operating model is on the margin of being low-cost.

'It is difficult for a regulator to define what is a truly low-cost airline,' Mr Davis told The Straits Times yesterday on the sidelines of a promotion launch with fast-food chain McDonald's.

'To allocate air rights based on such definitions is flawed because some airlines do not exactly fit the low-cost or full-service models.'

The CAAS defended its decision yesterday.

A spokesman said there is a wide spectrum of operating models that airlines adopt. 'Adam- Air's operating model is quite different from that of a typical low-cost carrier, which does not offer free food and drinks on board or seat assignment.

'For the same reason, we do not regard Valuair as a low-cost carrier.'

AdamAir, which took to the skies in December 2003, will offer three flights a day on the Singapore-Jakarta route starting Friday. Passengers will be assigned seats and served light snacks and mineral water.

Last week, Malaysia's AirAsia accused Singapore of discrimination for allowing AdamAir to fly here while rejecting a similar application in March from its Indonesian associate, Awair.

CAAS said it was still unable to approve Awair's Jakarta-Singapore flights as Indonesia's ban on foreign budget carriers is still in place.

Copyright © 2005 Singapore Press Holdings. All rights reserved

Oct 25, 2005
Want a flight to go with your french fries?

FASTFOOD chain McDonald's has launched a tie-up with budget airline Tiger Airways, giving diners the chance to buy ultra-cheap air tickets.

Called 'The tastiest travel deal in town', customers who buy its grilled chicken foldover meal will get a scratch card.

The card, said the airline, offers the 'exciting possibility' of winning the chance to buy air tickets to selected destinations from $14.98 each way, excluding taxes and fees.

Different destination choices will be offered each week, including Bangkok, Hat Yai, Manila, Phuket, Hanoi, Krabi, Macau and Padang.

Tiger Airways' chief executive, Mr Tony Davis, explained the rationale behind the tie-up: 'Both our companies share common values and aspirations in offering our customers a fantastic value-for-money product at unbeatable prices.

He added: 'In fact, Tiger Airways sees itself as the McDonald's of the low-cost airline industry.'

The promotion starts today and will end on Nov 13.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Oct 26, 2005
Jetstar unveils code-share deal with Myanmar airline

By Arthur Poon

JETSTAR Asia announced its first code-share deal yesterday, tying up with Myanmar Airways International to operate a four-times-a-week service between Singapore and Yangon.

From next Monday, passengers who used to fly on Myanmar Airways International between the two cities will do so on Jetstar's A320 Airbus planes, which will have an additional Myanmar language-speaking cabin crew member on board.

The new service increases the competition - and the similarities - between Jetstar and SilkAir, which is a subsidiary of Singapore Airlines (SIA).

Following Jetstar's announcement, SilkAir upped the ante by increasing its own Singapore-Yangon service from nine times a week to 14, starting on Sunday.

SilkAir and Jetstar also compete on routes to Phuket and Bangkok, while Jetstar's associate Valuair takes on SilkAir on the Surabaya route.

Industry observers suggest Jetstar is evolving into a regional carrier for its heavyweight backer Qantas, in the same way SilkAir acts as a regional arm of SIA.

Though Jetstar chief executive Ken Ryan has fiercely denied this, there are other strong similarities between the two.

Jetstar's adoption of the code-share deal with Myanmar Airways International mirrors SilkAir's arrangements with Malaysia Airlines and Indonesia's Garuda.

Jetstar's fleet of eight Airbus A320s also closely mirrors that of SilkAir, which has seven A320s and five A319s.

Separately, SilkAir announced yesterday that it is adding new destinations and ramping up its flight frequencies after taking delivery of two new aircraft earlier this month.

SilkAir has tied up with travel agents like Chan Brothers and CTC Travel to offer direct charter services to Nanning, capital of China's Guangxi province, from this month to December.

The airline will also take over SIA's services between Singapore and the Chinese city of Shenzhen, flying there six times a week. It will also offer twice-daily flights to Surabaya in Indonesia.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 27 Oct 2005

NEWS ANALYSIS
Jetstar not changing its basic model: CEO

But its transformation raises questions about its brand positioning

By VEN SREENIVASAN

IS Jetstar Asia changing its low cost carrier model? That is the question some industry watchers here must be pondering as the Qantas-controlled low fare regional associate embarks on code sharing tie-ups with other airlines.

The low cost airline has just announced a partnership with Myanmar Airways International. Under the deal, passengers who fly Myanmar Airways' four-times-a-week service between Singapore and Yangon can now fly on Jetstar's A320 aircraft.

And Jetstar Asia chief executive Ken Ryan says he is now 'working through' similar code sharing arrangements with the airline's principal shareholder, Qantas.

But Mr Ryan, who is also the chief executive of Jetstar's sister carrier Valuair, denied that his budget airline was transforming itself into a regional feeder for the Australian national, just as Silkair acts as a feeder for Singapore Airlines.

'We are not changing the basic model of our airline,' he said. 'We are still the same airline, providing competitively priced tickets and good quality service. We just want to inject more flexibility into the model in order to derive more benefits.'

And this includes working with other airlines and partners.

Mr Ryan explained that while the basics such as assigned seats, pay-for-meals and 20kg luggage allowance remain largely intact, Jetstar Asia was broadening its ticket distribution system.

Jetstar Asia, he said, would plug into global distribution systems (GDS) links 'capable of dealing with a number of other GDS used by other airlines'.

In short, travellers flying in from other regions or other parts of the world can book seamless regional connecting flights via Jetstar Asia through their local travel agents.

Currently, most budget carriers - including Jetstar Asia - sell their tickets via the Internet or call centres. There is little doubt that whatever GDS Jetstar Asia uses will be capable of linking with the Qantas system. The impending tie-up with Qantas is likely to be closely watched by Silkair, whose fleet of seven A320s and five A319s planes connects SIA's international passengers to more than 25 (mainly holiday) destinations in India, China and South-east Asia.

Industry insiders say that with its fleet of eight A320s (and a ninth due for delivery soon), Jetstar Asia is well placed to become a Qantas feeder, competing head-on with Silkair.

Under a feeder arrangement with the Australian carrier, a Qantas passenger flying into Singapore can conceivably enjoy seamless connectivity via a Jetstar flight at Changi Airport for onward journeys to Kolkata, Bangalore or any of its other six regional destinations.

But Mike Barclay, chief executive of Silkair, said he was not worried by the prospect of competition from Jetstar Asia.

'Of course, we always assess the competition,' he said. 'But we already have a good handle on the Australia (inbound) market to this region. And in addition, we also get a wide spread of feeds from worldwide inbounds.'

Nevertheless, Jetstar Asia's transformation does raise questions about its brand positioning, according to some industry experts.

'If they have to provide (free) food on some flights, like the Singapore-Yangon route, and charge for it on others, it does add a level of complexity into operations,' said one analyst here.

'Then there is the issue of being a budget carrier under a larger entity which also has a sister discount carrier, Valuair. Now they want to provide regional connectivity to mainline players like Qantas. It will be interesting to see how it all pans out.'

Jetstar Asia and its sister airline Valuair are operating units of Orange Star, which is 44.5 per cent owned by Qantas.

Mr Ryan does not want his airline labelled as Qantas's regional feeder.

'What we are doing is simply refining the way we distribute our product so as to add value to the product,' he said.

'The product and service we offer is quite attractive to other airlines. But they have to make a decision to tie up with us. And if it is to our benefit, we will do it.'

Meanwhile, Valuair - which recently obtained valuable new routes to Surabaya and Denpasar - will continue operating as it is, without the tie-ups which Jetstar is embarking upon, he said.

Both Jetstar and Valuair were taken over by Qantas and placed under the Orange Star umbrella several months ago after they hit severe financial turbulence in the face of rising fuel costs, restricted access to airports and poor yields.

However, in a move which surprised many industry observers, India last month offered Singapore-based carriers 2,760 extra seats on routes from Singapore to Bangalore, Hyderabad and Kolkata.

Jetstar clinched the rights to operate five weekly flights to the Indian IT capital of Bangalore, while SIA associate Tiger Airways secured three flights a week to Kolkata. Jetstar was also given permission to bump up its Singapore-Kolkata flights to four per week, from the present three.

No sooner had this piece of good news sunk in when Jetstar's sister discount carrier, Valuair, obtained rights to operate flights to Denpasar in Bali and Surabaya.

Jetstar is expecting to begin its Bangalore flights within the next week or two.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

29 October 2005

Tiger Airways keen to fly to KLIA low-cost carrier terminal

SINGAPORE : Singapore's budget airline, Tiger Airways, is keen to fly to Malaysia's new low-cost carrier (LCC) terminal at the Kuala Lumpur International Airport (KLIA).

Tiger Airways Chief Executive Officer Tony Davis said the airline was "very keen" to fly between Singapore and Malaysia.

He was commenting on a news report that Malaysia Airports Holdings Bhd (MAHB) is wooing regional LCCs to fly to the new facility, to be launched next year.

"(We) will definitely take up the offer from MAHB to use the LCC terminal if we receive permission from the Malaysian aviation authorities to do so," Davis said in a statement.

"MAHB is currently expecting to service only half of its 10 million passenger capacity from the existing Malaysian budget carrier that is going to use the facility. Tiger Airways is confident it can help raise these figures substantially if we are allowed to fly the Singapore-Kuala Lumpur route," he added.

Malaysia's AirAsia, the region's leading LCC, will be the main occupier of the RM108 million terminal, taking up 24 of the 30 parking bays available.

The KLIA's LCC terminal is expected to be operational by March or April next year.

Tiger Airways currently flies to 10 cities in six countries - Singapore, Thailand, Vietnam, Macau, the Philippines and Indonesia. - CNA/de

Copyright © 2005 MCN International Pte Ltd

Oct 31, 2005
Budget carriers keen to use new KL terminal

By Arthur Poon

IN YET another attempt to start flying to Kuala Lumpur, all three Singapore-based budget airlines said on Friday that they were ready to use the new low-cost carrier (LCC) terminal at the Kuala Lumpur International Airport (KLIA).

Currently, the Singapore-Kuala Lumpur route is barred to all Singapore- and Malaysia-based carriers except Singapore Airlines and Malaysia Airlines, which charge more than $300 for a return ticket.

But Tiger Airways, Jetstar Asia and Valuair were heartened by Malaysian media reports last Thursday that said Malaysia Airports Holdings chief executive officer Bashir Ahmad had invited all budget airlines to use the new LCC terminal.

Malaysia Airports Holdings is a government-linked company that manages and operates all the airports in Malaysia.

Tiger Airways chief executive Tony Davis said: 'We are very keen to fly between Singapore and Malaysia, and will definitely take up the offer to use the LCC terminal if we receive permission from the Malaysian aviation authorities to do so.'

A spokesman for both Jetstar Asia and Valuair also said: 'We'd be delighted to take up the opportunity to use the new low-cost terminal located at KLIA...we are confident that it will not only provide a benefit to passengers, but also to the broader economies of both countries.'

There is certainly room for them at KL's LCC terminal.

Malaysia Airports Holdings expects to serve only half of its 10 million passenger capacity from Malaysia's budget carrier, AirAsia.

The opening of KL's new RM108 million (S$48.3 million) LCC terminal early next year may coincide with that of Changi Airport's.

It will be five times larger than the one at Changi, which can handle around two million passengers a year.

So far, only Tiger has signed up to use Changi's LCC terminal.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 01 Nov 2005

Asiatravel writes off $7m investment in Valuair

By CONRAD RAJ

ASIATRAVEL.COM Holdings has decided that its $7.26 million investment in budget carrier Valuair is not likely to bring in any dividends for the foreseeable future and has written it off.

The company, which provides online airline and hotel bookings, announced yesterday that it was making full provisions for the investment it made two years ago. As a result, it will report losses for the current financial year.

It said the investment in Valuair 'had suffered a large diminution in value when Valuair was swapped into OrangeStar on July 22, 2005'.

OrangeStar was formed to take over the assets of Qantas-led budget airline Jetstar Asia and Valuair following combined losses of more than $50 million.

'The NTA of the merged entity at point of merger was $45 million, which would effectively price our 1.05 per cent stake in OrangeStar at $0.47 million,' Asiatravel said.

It added: 'We would like to assure all shareholders that this action is purely an accounting treatment of the investment and in no way suggests nor leads to any damage or decline in the group's operations or cash flow. We believe that this full provisioning of the Valuair/ OrangeStar stake would put this whole episode firmly behind the group and enable us to move forward without having to contend with issues arising from this investment.'

As part of its spring cleaning operations, Asiatravel has also decided to recognise an additional $300,000 in write-downs and provisions for legacy projects that it has since terminated including small enterprises in India, Malaysia and elsewhere.

It also warned earnings for the second half were likely to be weaker due to poorer bookings and margins in markets like Phuket, Malaysia, the Middle East and China. Also suffering were its land transport and hotel promotion programmes.

It is not known whether other former shareholders of Valuair will follow Asiatravel's step in biting the bullet and writing off their interest in the budget carrier. Hong Kong-listed Star Cruises was Valuair's single biggest investor with a 20 per cent stake said to cost some US$15 million.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Nov 3, 2005
First layoffs after merger: 10 Valuair workers to go
30 others given option to accept new pay package or opt for retrenchment

By Karamjit Kaur
Transport Correspondent

TEN Valuair employees - from flight operations and administration - have been retrenched, the first casualties since the low-cost airline merged with Jetstar Asia in July.

A Jetstar spokesman said the merged company tried to save as many jobs as possible 'but where there was duplication, we had to let the staff go.

'It was not an easy decision but it could not be helped.'

However, a frustrated Valuair employee was not convinced. 'It is fair enough that we do not want duplication. But why axe just Valuair staff and not Jetstar? Surely the logic should be to keep the best people.'

The reason, a source said, is that when the two airlines merged, Jetstar's shareholders pumped in $50 million while Valuair shareholders are said to have put in just $10 million. Naturally, Jetstar which is backed by Australia's Qantas, would protect its own staff, he said.

While the merged entity is run as a single company, the two airlines are keeping their separate names for now.

This is mainly because air rights, which stipulate where carriers may fly, are not easily transferred from one airline to another.

It also emerged yesterday that another 30 Valuair employees from the merged company's engineering department and the call centre that handles bookings have been given the option to either accept a new pay package or leave with one month's severance pay if they are unwilling to accept the new deal.

The intention is not to retrench in these two sectors but to give staff a choice. The Jetstar spokesman said jobs are available for all call centre and engineering staff.

No details are available on the new pay package.

The Straits Times understands they have until next week to decide.

Retrenched employees will receive one month's severance pay plus cash for any outstanding leave. They will continue to work until the end of the month.

Since the merger, many Valuair pilots, cabin crew and other workers have left the airline for various reasons. Some were not happy with the new pay package offered while others just could not fit in, said an insider.

Of the approximately 200 Valuair employees, 140 remain.

In September - two months after the merger - Valuair pilots and cabin crew were briefed on their new pay packages, which are the same as those given to Jetstar employees.

It meant a pay cut for pilots and just over a quarter of Valuair's 40 pilots have since quit.

About 30 per cent of the 80 Valuair stewardesses also left the new airline.

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 08 Nov 2005

Valuair dedicated to just S'pore-Indonesia routes

It drops services to Hong Kong, China, Australia and Thailand

By VEN SREENIVASAN

(SINGAPORE) Valuair, which was taken over by Qantas-controlled Orange Star some months ago, has become a dedicated Singapore-Indonesia carrier.

The airline recently dropped its much publicised services to the Chinese cities of Chengdu and Xiamen. Around the same time, it also quietly dropped its services to the West Australian city of Perth. Last month, it scrapped services to Bangkok and Hong Kong.

This leaves Valuair with thrice-weekly services to the Indonesian capital, Jakarta, and daily services to Surabaya in central Java.

Valuair also secured traffic rights to serve the Indonesian resort island of Bali, but its chief executive Ken Ryan says flights will start after some technical issues, including some local permits, are sorted out.

Mr Ryan yesterday confirmed that the discount carrier was focusing on the Indonesian market and hinted that it could seek more routes in the populous country.

All this comes just months after Valuair was taken over by a Qantas-led group of investors after running out of cash following a tough first year of operation.

Together with Qantas' equally-troubled Singapore-based low cost carrier JetStar Asia, Valuair was placed under a holding company - Orange Star - which is 44.5 per cent owned by Qantas. Other investors include Temasek Holdings, Star Cruises and various original shareholders in both carriers.

Speaking to BT when the restructuring was taking place in July, Mr Ryan insisted that both airlines would remain as separate and distinct operating units under Orange Star banner.

'We plan to grow the two airlines, their management structures and route networks,' he told BT then. ''It gives us two arrows for a single bow.' But when he spoke to BT yesterday, Mr Ryan hinted that both airlines could ultimately be operationally merged. 'We don't intend to have two brands indefinitely,' he said.

A full merger might present its own set of problems in places like Indonesia which has slapped a blanket ban on foreign low cost carriers like JetStar Asia and Tiger Airways. But Indonesia considers Valuair a full service discount carrier and thus allows it to fly into its cities.

Although JetStar Asia may be poised to move up the discount carrier model as it starts tying up interline deals with full service carriers like Myanmar Airways (and soon with Qantas), it is still considered a low cost carrier by the Indonesian authorities.

Meanwhile, Orange Star is moving ahead to impose some form of operational uniformity across its two carriers. Valuair's pilots and staff have been asked to sign new pay contracts, or leave. Mr Ryan said this was necessary as remuneration structures at Valuair were much higher than at JetStar Asia.

'Where people are doing the same jobs, we will put them on the same remuneration packages,' he said, revealing that some administrative functions had been merged, resulting in some retrenchments.

The restructuring has not gone down well with many of Valuair's pilots and cabin crew.

'A significant number of cabin crew and pilots did not accept the new terms and have resigned,' Mr Ryan said.

It was earlier reported that 10 Valuair employees from flight operations and administration have been retrenched, with 30 others being given the choice of accepting the new pay package or be retrenched. An airline with just three routes might be happy with this.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

09 November 2005

Tiger Airways to launch Australian flights in December

SINGAPORE : Tiger Airways will begin flights to Australia with the launch on December 19 of a four-times weekly service to the city of Darwin, the Singapore-based budget carrier said on Wednesday.

Fares for a one-way trip to Darwin, the capital of Australia's Northern Territory state, will start from S$49.98 (US$29.40) excluding taxes, the carrier said in a statement.

Ticket sales for the route will start on Thursday.

"We are excited to launch new low fare flights to yet another country in the Asia-Pacific region ... there is strong demand for affordable flights to Australia from Asia," said Tiger Airways chief executive Tony Davis.

The Northern Territory's chief minister Clare Martin said the launch of the new service will draw more Asian tourists to the Australian state, which boasts of some of the world's greatest natural attractions, including Ayers Rock or Uluru.

"This gives the Northern Territory a huge opportunity to tap into the new Asian markets of Singapore, Macau, Thailand, India, Vietnam and Southern China," Martin said.

"It will help us to deliver more tourists in our off peak seasons at very attractive rates."

Tiger Airways, 49-percent owned by Singapore Airlines, has been rapidly expanding its network since starting commercial flights in September 2004.

The carrier now flies from Singapore to 10 destinations in Asia including Bangkok, Hanoi, Ho Chi Minh City, Phuket and Clark Field north of Manila. - AFP/de

Copyright © 2005 MCN International Pte Ltd

Nov 21, 2005
Budget airlines ban: Will tourism lead to U-turn?
Joint tourism promotions could break impasse. S'pore, Jakarta working on meeting before year-end

By Karamjit Kaur
Transport Correspondent

BUDGET airlines banned from flying to key Indonesian cities are hoping new efforts by Singapore agencies to promote tourism in Indonesia could help break the impasse.

One possible target - drawing tourists from China to Singapore, and then on to destinations in Indonesia.

Eight months ago, Indonesia closed its doors to foreign budget carriers applying to fly to key points including Jakarta, Medan, Surabaya and Denpasar - to protect its fledgling industry.

There has been little progress in getting the ban lifted. A spokesman for Indonesia's transport ministry told The Straits Times: 'Nothing has changed. We are still not approving any new applications.'

However, insiders say Indonesia may be more inclined to lift the ban if both sides can agree to work on more joint projects to promote tourism.

In 2000, Singapore pledged $2 million to fund joint promotional projects, said Singapore Tourism Board deputy regional director for Asean (Islands), Mr Lee Kai Yin.

Just last month, Indonesia's Minister for Culture and Tourism Jero Wacik met Trade and Industry Minister Lim Hng Kiang. Mr Lee said: 'Both sides agreed to jointly promote Indonesia and Singapore, in China. Details are being worked out.'

Local budget carriers Jetstar and Tiger are hoping that joint tourism promotions could be the deal clincher.

Tiger wants to fly to Jakarta and Medan, while Jetstar and Valuair can operate under a single name only when Jakarta agrees to transfer all air rights that Valuair has to Jetstar. This is because Jakarta does not consider Valuair, which has a valuable foothold in Indonesia, a budget carrier.

Valuair flies twice daily to Jakarta and once a day to Surabaya, and to retain those rights for now, the airline may have to stay separate, despite the merger with Jetstar.

Since the ban was imposed in March, Indonesia's Transportation Minister Hatta Rajasa and Transport Minister Yeo Cheow Tong have met twice.

The Indonesian ministry recently wrote to its Singapore counterpart to arrange a third meeting. A spokesman for Singapore's Transport Ministry confirmed that the letter was received, and said: 'Both sides are working towards arranging a meeting before the end of this year.'

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Nov 25, 2005
Jet Airways not out to be low-cost airline
The Indian carrier, which is set to expand, hopes to offer value for money

By Karamjit Kaur
Transport Correspondent

JET Airways will fly daily between Singapore and Chennai, India, from Dec 7.

But those hoping for major discounts will be disappointed because the Indian private airline, which started serving the Singapore-Mumbai market in July, is not out to be a cheap airline.

Still, more competition should ease prices, said Mr V. Raja, the airline's vice-president for the Asia-Pacific region.

He told The Straits Times in an interview on Wednesday: 'We are not here to drive prices down. What we offer is value for money.

'But with more competition, prices will settle down after a while and find their own level. Where that is, we do not know.'

But Jet Airways is cheaper than Singapore Airlines (SIA), barring special promotions when the Singapore carrier offers limited return tickets to India for under $500.

SIA's regular fare, according to its website, is $900, excluding taxes and surcharges, for a return flight to Mumbai. It is the same for Chennai.

Jet Airways' fare to Mumbai, according to its website, is $700. It will be the same fare for Chennai.

But those who book before the start of the Chennai service will pay $600 each, if two travel together.

Other airlines that also serve the Singapore-India market include Air Sahara, Air India and Indian Airlines.

For travellers like Indian expatriate Dipita Singh, 28, who flies home at least once a year, the draw of Jet is its service level.

The housewife, whose husband works here, said: 'The service standards are very good. Many people want to fly only SIA to India. But Jet is now also a very good option.'

Jet Airways aspires to be as good as, if not better than SIA, said Mr Raja. 'There is no shame in wanting to emulate somebody who is good. In fact, we want to be better.'

Set up just 12 years ago, the airline - India's largest domestic carrier by market share - has a pool of about 600 cabin crew.

About 30 of them are based here and more than half are ex-SIA staff, he said.

There are also ex-SIA staff in the airline's training unit.

Changi Airport will be the airline's regional hub, said Mr Raja.

He added: 'Singapore is the obvious choice for us with its many links. Changi is also one of the best in the world.'

Jet Airways also wants fifth freedom air rights from the Singapore Government so that it can carry passengers beyond Singapore, he said.

For competitive reasons, he did not want to specify the beyond-Singapore destinations that the airline is keen on.

India's aviation industry is booming.

Jet Airways, which now has more than 50 aircraft in its fleet, is expected to hire nearly 600 pilots, 2,200 cabin crew and 800 engineers in the next five years.

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

This story was printed from TODAYonline

Jetstar discounts to mark 1st anniversary

Tuesday • November 29, 2005

Singapore-based budget carrier Jetstar Asia yesterday said it would offer fare discounts on all its nine routes as part of its first anniversary celebrations.

The discounts will be available for booking immediately until Dec 13, the airline said. Jetstar Asia launched commercial flights on Dec 13 last year.

Under the promotion, fares to Phuket or Bangkok are $18, the fare to Hong Kong is $68 and the fare to Taipei is $88. Flights to Manila and Kolkata are $98, while those to Siem Reap and Phnom Penh are $138. Tickets to Yangon, offered on a round-trip basis, are $208. All trips must be completed between Jan 2 and June 30 next year.

— Dow Jones

Copyright MediaCorp Press Ltd. All rights reserved.

29 November 2005

Jetstar Asia turns one, to focus on Indonesia, Malaysia, India
By Asha Popatlal, Channel NewsAsia

SINGAPORE : One year after operation, low-cost carrier Jetstar Asia has its focus fixed on Indonesia, Malaysia and India, where it hopes to expand its operations once skies open up.

The company is building up the Jetstar Asia brand as a single brand, its CEO Ken Ryan told Channel NewsAsia.

It has been a turbulent first year for Jetstar Asia, with soaring fuel prices, cut-throat competition, closed skies and a highly publicised July merger with Valuair.

Following the tie-up, 70 staff have left, and although the two carriers have been operating as two brands under one organisation, Valuair's flights have been slowly dropped.

It now no longer flies to Perth, Chengdu, Xiamen, Bangkok and Hong Kong.

Valuair now only flies to Indonesian cities Jakarta, Surabaya and shortly, Denpasar.

But once Indonesia lifts its ban on other budget carriers and Jetstar gets to go in, are Valuair's days numbered?

Said Mr Ryan, "We will not do away with the Valuair brand until as such time when it would not jeopardise the air traffic rights that Jetstar Asia cannot get access to. Ultimately, we would like to see a single brand and Jetstar Asia is that brand."

Meantime, the Jetstar brand has evolved, taking on elements of some full-service carriers.

For example, it has code sharing with Qantas, which means a passenger can fly to Singapore and go on to other destinations such as Phuket and Kolkatta on Jetstar.

So what sort of carrier is Jetstar Asia now? All its CEO would say is that it is a low-fare carrier that will continue to adapt as the circumstances dictate.

For now, its expansion plans focus on the routes the company already has.

It also has a wish list for certain areas, once the skies are open.

Mr Ryan said, "It is opening up to some new destinations -- Kuala Lumpur is a prime example and other cities in Malaysia. It is opening up Indonesian cities -- these are prime; it is India traffic rights which are quite constrained now."

The tough times not withstanding, Jetstar is looking beyond the turbulence and still hopes to break even and perhaps turn profitable inside three years. - CNA /ct

Copyright © 2005 MCN International Pte Ltd

02 December 2005

Ken Ryan steps down as Jetstar Asia CEO
By Asha Popatlal, Channel NewsAsia

Budget carrier Jetstar Asia says its CEO Ken Ryan is stepping down after just 8 months at the helm to return to Australia.

Acting CEO, Neil Thompson, will take over immediately.

A new permanent chief is expected to be appointed in the new year.

The announcement will bring to four the number of chief executives - interim or otherwise - the fledgling budget carrier have in just about a year of operations.

During his tenure, Ken Ryan has presided over some difficult times like the July merger with Valuair and the resulting rationalisation exercise that saw a number of staff leaving.

In a recent interview with Channel NewsAsia, Mr Ryan complained about closed skies in the region in the carrier's bid to expand amidst claims of uncompetitive behaviour from other airlines.

In an official statement, Qantas Chairman Geoff Dixon said: "Ken's family has unfortunately been unable to join him in Singapore, which is why he has reluctantly decided to return to Australia."

Mr Ryan will take on a new senior management position with Qantas in Sydney.

The carrier says acting chief, Neil Thompson, has extensive knowledge of the Asian market as well as 18 years aviation experience at Qantas.

He is currently General Manager of Customer Relationship Marketing at Qantas.

Jetstar Asia is a Singapore-based budget carrier, with a significant Qantas shareholding. - CNA/ch

Copyright © 2005 MCN International Pte Ltd

I think Tiger and Jetstar should be quite happy to hear this......:yes:

Business Times - 06 Dec 2005

AirAsia drops bids to fly to Singapore

KUALA LUMPUR - Malaysian budget carrier AirAsia has dropped bids to fly from Kuala Lumpur to neighbouring Singapore for now and has no plans yet to tap the booming Indian market, its chief executive said on Tuesday.

AirAsia did not submit any new applications after failing several times to secure landing rights in Singapore, and doesn't intend to submit new applications, Tony Fernandes said.

'We don't want to go to Singapore right now. There are plenty of better places to go to. It's got first to be completely transparent and it's got to be open competition on all fronts,' he told reporters on the sidelines of a regional aviation conference here.

Mr Fernandes said India does not feature on AirAsia's regional expansion programme at the moment as the country still has strict regulations on aviation despite recent moves to liberalise the sector.

'We don't have any plans for India ... We have our hands full at the moment,' he said, adding that the carrier will focus on pursuing its expansion in Southeast Asia to penetrate the regional market of 500 million people. -- AP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Dec 7, 2005
Tiger Airways looking for second Asian base
Launch of joint venture planned for next year, but location not decided yet

By Karamjit Kaur
Transport Correspondent

KUALA LUMPUR - TIGER Airways is in talks with several potential partners and plans to launch its first joint-venture airline in Asia next year.

However, the Singapore-based carrier has yet to decide where to set up its second base. Mr Tony Davis, chief executive officer of the budget carrier backed by Singapore Airlines (SIA), told The Straits Times in Kuala Lumpur yesterday a location has not been picked for the secondary base.

Speaking on the sidelines of the Asia-Pacific and Middle East Aviation Outlook Summit 2006, he said: 'Our plan has always been to be a pan-regional carrier. There are several options we are looking at for a secondary base.'

The goal is to start two or three such ventures in different Asian countries in the next few years, he said, adding that such partnerships are key if Tiger is to expand in a region where traffic rights are limited and carriers cannot fly where they want.

Indonesia, for example, recently banned foreign budget airlines from flying to key cities, in a bid to protect its own fledgling air transport industry.

Budget carriers are also not allowed to serve the Singapore-Kuala Lumpur market.

Tiger's strategy is similar to that of Malaysia's AirAsia, which has joint-venture airlines in Thailand and Indonesia.

Thai AirAsia, for example, flies between Bangkok and Singapore.

Tiger, which started operations in September last year, is a partnership between SIA, investment company Temasek Holdings, the founders of Irish low-cost airline Ryanair and United States-based marketing and business strategy consultants Indigo Partners.

Mr Davis was appointed president and chief executive officer of Tiger in November last year.

The airline has four planes and will get another eight in the next 18 months.

Tiger flies to more than 10 destinations, including Bangkok, Phuket, Hanoi, Macau and Darwin in Australia.

There are also plans to expand to India and China.

Mr Davis told the conference that, to remain viable, budget airlines must be religious about cutting costs.

Efficient use of resources is also key, he said, adding that Tiger has one of the highest aircraft utilisation rates in the business. Each of its four planes is in the air for about 14 hours a day.

Tiger has more flights a week than either Jetstar Asia or Valuair, he added.

They also have four planes each.

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 12 Dec 2005

Low-cost airlines announce special fares on new routes

SINGAPORE - Asia's low-cost airline battle heated up on Monday when Singapore-based discount carriers announced special fares on new routes to Australia, Bali and India.

Tiger Airways is selling tickets for a one-way trip to Darwin at $1 (60 US cents) each to mark the launch of the airline's service to the Australian city next week, the carrier said.

The promotional fare, applicable only on flights from Singapore to Darwin from Dec 19 until the end of the month, is targeted at travellers planning a short trip over the Christmas holidays, Tiger Airways said in a statement.

Sales of the special fare, which excludes taxes, will end on Friday, the airline said.

Tiger Airways announced last month it will launch four-times weekly service to Darwin, capital of Australia's Northern Territory.

Also on Monday, Jetstar Asia and Valuair said they will begin five-times weekly service to Bangalore from Singapore starting on Jan 23, and thrice-weekly service to the Indonesian resort island of Bali from Jan 27.

Jetstar and Valuair said that between Tuesday and next Monday they are offering one-way fares of $98 to Bangalore and $99 return to Bali.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Dec 13, 2005
Jetstar and Valuair's latest destinations: Bangalore and Bali
Promotional fare to Bangalore is around $200, and to Bali, $99. Flights start next month

By Karamjit Kaur
Transport Correspondent

TRAVELLERS can expect lower fares when Jetstar Asia starts flying to Bangalore next month.

The airline, backed by Australia's Qantas, will fly to the Indian IT hub five times a week from Jan 23.

Early birds who book in the next one week will pay a promotional fare of $98 for a one-way ticket and around $200 for a return ticket. Travellers also need to pay airport taxes and other applicable surcharges.

The regular one-way fare is $228 and it is $400 plus for a return ticket.

Main carriers like Singapore Airlines charge more than $600 for a return fare.

Jetstar Asia's acting chief executive officer, Mr Neil Thompson, announced the new route yesterday when he met the press.

He said: 'Bangalore has been growing phenomenally over recent years and while airlines have flocked to fill passenger demand, the costs of flying have been very high.'

Jetstar's entry into the market will change that, he promised, adding that the airline will be the 'only value-for-money airline operating between the two cities'.

Mr Thompson also announced that Valuair will start flying three times a week to Bali in Indonesia from Jan 27.

A promotional fare of $99 for a return trip is also available for those who book in the next one week.

Jetstar Asia and Valuair merged recently but the two airlines are retaining their separate brands for now.

Mr Thompson, Jetstar Asia's third new boss in a year and formerly Qantas' general manager for customer relationship marketing, plans to concentrate on customer service and growing existing markets.

'One area of focus will be to consolidate our positions in the existing markets and grow the business in those areas,' he said when asked about his role before a new permanent head is appointed in the first quarter of next year.

The Straits Times understands that there are no new destinations on the radar for the next few months at least.

Given his marketing and customer relationship background, Mr Thompson will also spend some time working on customer profiles.

The idea is to gather information on the different types of people who fly the airline so that programmes and services can be introduced with the customer in mind.

Jetstar, which is 49 per cent owned by Qantas, will fly to 10 destinations by the end of next month.

Valuair will fly to three points in Indonesia - Jakarta, Surabaya and Bali.

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Dec 14, 2005
NEWS ANALYSIS
Hopes for joint budget airline for S'pore-KL route

By Karamjit Kaur
Transport Correspondent

FOR travellers tired of paying top dollar for Singapore-Kuala Lumpur flights while seats on other regional routes sell for small change, a new budget airline jointly owned by stakeholders from both countries could offer hope.

According to Standard & Poor's aviation specialist Shukor Yusof, Tiger Airways is rumoured to be in talks on this idea with Malaysian authorities. Several other industry insiders have heard similar talk, but at this stage, details are sketchy.

A partnership airline could be the middle ground that will end the decades-old Singapore Airlines-Malaysia Airlines (SIA-MAS) duopoly on the route, which costs $400 for a two-way 45-minute flight between Singapore and Kuala Lumpur.

This, at a time when Tiger Airways is offering promotional $1 flights to Darwin and AirAsia is celebrating its anniversary by giving away two million free seats. Flying a budget carrier from Singapore to Bangkok and then to Kuala Lumpur can sometimes be cheaper.

The Singapore-KL sector is a dream route for budget airlines. It is a high-volume route and the aircraft turnaround time is short. Fares would dramatically reduce and air travel between the two cities would increase.

But since 1980, the air services agreement has not changed and neither SIA nor MAS seems too keen to loosen its grip on this route.

The two airlines operate 182 of the 213 flights a week between Singapore and Kuala Lumpur.

Throwing open the sector to full competition sounds ideal, but it has not happened for the last 25 years and that does not look likely to change.

One proposed idea was to pick one budget airline on each side of the Causeway and let both serve the route. However, this could lead to problems if one was seen to be doing better than the other. It is for this reason that SIA gives up half its revenue on the Singapore-KL route to MAS.

The natural solution, then, could be a new budget airline with equal Singapore and Malaysia partnership.

One possible scenario is for Tiger Airways to take a stake in a new airline to be registered in Malaysia, while the Malaysian partner takes a stake in Tiger. Such an arrangement could also persuade key investment agencies on both sides of the Causeway to get involved.

The new airline would then apply for the air rights to serve not just the Singapore-KL market but other domestic routes within Malaysia as well.

With Tiger Airways in the picture, the airline could take off fairly quickly, since the operational know-how, pilots, technicians and planes are already available.

But surely SIA and MAS would protest?

Perhaps, but it helps that SIA owns 49 per cent of Tiger, which means it would still get a share of the business. As for MAS - which is losing millions even with the money it makes on the Singapore-KL route - it could be convinced to give up some of its Singapore-KL business if it is allowed to drop the many unprofitable domestic routes and some international routes it is now forced to serve for national and political reasons.

Will it happen? Many are sceptical and perhaps for good reason. But at least, for the first time in 25 years, the wheel may be slowly starting to turn.

Travellers can also take comfort that Asean is pushing to lift all restrictions on air travel between its 10 member states' capital cities by 2008, or, if possible, by the end of next year.

It has already been 25 years. What is another three?

Copyright © 2005 Singapore Press Holdings. All rights reserved.

14 December 2005

Budget carriers expected to fly high next year despite turbulence
By Asha Popatlal, Channel NewsAsia

SINGAPORE : It has been a year and a half since budget carriers landed on the scene in Singapore.

And in riding out the turbulence, some have expanded, while others have had to consolidate to stem the bleeding.

Two big issues dominated the budget aviation scene in Singapore in 2005.

One was getting much-needed air rights that would fill all those plane seats.

And two, it was the on-again off-again alliance between Valuair and Jetstar Asia, which finally resulted in merger in July, in the first concrete move of the much-anticipated market consolidation.

Analysts say the tie-up may have a short-term impact on the overall market.

Nicholas Ionides, Regional Managing Editor, Asia, The Flight Group, said, "In 2005, the consolidation that took place, in reality, is the exit of one of the players - Valuair. (This) will probably scare off potential future new entrants in the market for now."

But the long-term issue is getting air rights in Asia's traditionally restricted markets.

Unlike Europe, which is primarily a domestic market, budget carriers based in Singapore have to operate across different countries with different regulatory systems and different ownership rules.

This is a problem which is compounded because Singapore has a small domestic market and cannot feed enough passengers to the carriers.

One trend analysts see the carriers adopting is to develop subsidiaries or associate airlines outside their home markets, as AirAsia has done.

And despite the inevitable initial losses, analysts say expansion is definitely on the horizon.

Chris Sanda, Aviation Analyst, DBS Vickers Securities, said, "At this point, I don't think they want to stem losses. This is the natural start-up phase which is - if you under-spend during this part, you are not going to expand and scale up fast enough to be a successful airline.

"You look at other airlines like RyanAir and South-West Airlines - they have been very successful - they are the ones who got into the market, expanded very quickly and shut out all the other competitors."

Still, industry watchers say that they expect the airlines to exercise caution when deciding where to expand.

Mr Sanda said, "You can't just fly anywhere you want to and can't just put as much capacity as you want to - put too much capacity and your planes are too empty, you don't make money - or you don't put enough on - you're letting your competitors take that market - it's a delicate balance."

Looking ahead, analysts say two types of markets will prove to be a challenge.

These are closed markets,such as Indonesia's main cities, which are still a no fly zone for budget carriers; as well as small markets, such as Cambodia, where a few players would be good but too many would spoil the market. - CNA/ms

Copyright © 2005 MCN International Pte Ltd

Tiger Airways is giving 50000 free tickets to Hai Yat, Krabi, Danang and Padang as part of the celebration of its launch of the new website....:yes:

http://www.zaobao.com/images/smzaobao.jpg

新闻:新加坡 2005-12-17

虎航免费机票今可预订

　　本地廉价航空公司虎航为推出新网站进行宣传促销,一口气推出5万个从新加坡飞往泰国、印尼及越南的免费机位。这也是虎航首次推出免费机票来优待乘客。

　　这些地点是泰国合艾(Hat Yai)、印尼巴东(Padang)、泰国甲米(Krabi)及越南岘港(Danang)。订票期从今天开始至下个星期四(22日 ) 结束。

　　幸运订得免费机票的乘客只需支付各种机场税务和附加费。免费机票只限于2006年1月5日至2月25日之间使用。

　　此外,虎航也推出7个目的地的特惠机票。飞往河内及普吉岛的单程机票是29元98角;飞往曼谷、清迈、胡志明市、澳门及克拉克(Clark)的单程机票则是39元98角。特惠机票只限于2006年1月3日至31月31日间使用。虎航网站:www.tigerairways.com.

Business Times - 09 Jan 2006

S'pore completes budget air terminal

SINGAPORE - Singapore has completed construction of a dedicated terminal at Changi Airport to serve the booming low-cost airline sector, officials said on Monday.

The terminal will be operational on March 26, a Civil Aviation Authority of Singapore (CAAS) spokesman said.

The one-storey terminal cost S$45 million (US$27.5 million) to build and occupies 25,000 sq m, and will handle about 2.7 million passengers a year.

Singapore-based Tiger Airways, backed by flag carrier Singapore Airlines, has committed to use the terminal. -- AFP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

This 25,000 sqm terminal was completed on 28 Dec 2005 and will open on 26 March 2006. Functional, colourful (perhaps even a little overboard at times) and comfortable, it will have 18 check-in counters, 7 departure gates, 10 aircraft parking bays, 3 arrival baggage carousels and 300 car parking lots.

Arriving at the terminal for your flight, you will be greeted by the creamy yellow and eggplant purple departure building.

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As you enter the departure building, you will be greeted by a spartan check-in hall with a row of 18 brick-red check-in counters.
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Once you have checked in, look to your left and you will see an entrance below the big "DEPARTURE" sign.
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This takes you into the Immigration Clearance area where there are 4 immigration counters and 6 express automated immigration lanes. Beyond that, you will go through centralised security screening - unlike in T1 and T2 where one is security screened only at the boarding gates.
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After screening, you are in another big hall where there are concessionaires such as DFS Duty Free shop, Seven Eleven supermarket, Chocolates by King Power, Hang Ten apparels, Tiny Toons toys, Nuts&Nibble, Times NewLink, Carlo Rino fashion accessories, Nuance-Watson, Killiney KopiTiam, Genki Sushi, Han's plus two as-yet unawarded concessions for sporting goods and general merchandise.

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Just before boarding commences, the gate number will flash on the Flight Info screens and you will proceed for boarding towards that psychedelic coloured wall. Once there, you will see a long cream-coloured departure corridor.

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When you enter the arrival immigration hall, it is again airconditioned. There are 7 immigration lanes and 7 express automated immigration lanes. Your luggage will be delivered on one of three baggage carousels.

When you exit the arrival hall, it looks just like this.
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There are taxi stands and the public bus-stop is a short walk away (mind you, this is unsheltered so make sure your brollies are ready during the wet season). Alternatively, you could elect to take the shuttle bus to T2 (and from there via Skytrain to T1). This shuttle bus operates every 15 mins.
http://i11.photobucket.com/albums/a161/juanwy/BudgetTerminal-11zr-09Jan2006-Shutt.jpg

Jan 10, 2006
CPIB INVESTIGATION
Jetstar Asia assisting in Airocean probe

LOW-COST carrier Jetstar Asia says it is assisting the Singapore authorities with investigations into the Airocean Group.

Jetstar's acting chief executive, Mr Neil Thompson said in a statement yesterday: 'We are aware of the investigation into Airocean by the Corrupt Practices Investigation Bureau (CPIB) and have offered our full assistance to the relevant authorities.'

In a report last week, The Straits Times cited sources who were aware of a briefing by former Airocean chief executive Thomas Tay to the Airocean board after he was interviewed by the CPIB in September. This included an allegation that an Airocean subsidiary tried to bribe an officer at Jetstar in a bid to win a contract.

The sources said Mr Tay said he told the CPIB he had advised a Sydney-based officer at Airocean's general sales agency division to tell the Jetstar officer to help Airocean with its bid to win the Jetstar tender, and to say that it would help him in return.

Airocean did not win the Jetstar contract.

Following the report, Mr Thompson said yesterday: 'I would like to confirm that Jetstar Asia has at no time awarded business to Airocean.'

'In this, as in all matters, Jetstar Asia and its officers maintain the highest standards of integrity and professionalism in our business dealings.'

LEE SU SHYAN

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 13 Jan 2006

Tiger Airways seeks details of alleged route violations

SINGAPORE - Singapore budget carrier Tiger Airways expressed surprise on Friday at allegations by a Philippine official that it had violated terms of its permit to fly between Macau and an airport north of Manila.

'Tiger Airways is surprised to read reports attributed to the Philippine Civil Aeronautics Board (CAB) that the airline was found to have violated several operating conditions on its route between Manila (Clark) and Macau,' the carrier said in a statement. 'The airline today asked its representatives in the Philippines to obtain details of these alleged violations so that it can respond promptly to them.'

The Philippines' aviation industry regulator said on Thursday it has suspended Tiger Airways from operating flights between the southern Chinese enclave of Macau and Clark International Airport because of the alleged violations. However, Tiger Airways' low-fare flights between Singapore and Clark were unaffected by the decision.

CAB executive director Eduardo Manalac said the airline was found to have violated several operating conditions of the Macau-Clark route, including charging rates that have not been approved by the board and falsely claiming the services had been approved. The airline was also found to have advertised and sold seats even before lodging an application with the aviation industry regulator, he said. -- AFP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Jan 14, 2006
Tiger Airways 'can appeal Manila flight suspension'
But it must still pay fine for alleged violations, says official

By Luz Baguioro
PHILIPPINES CORRESPONDENT

MANILA - SINGAPORE budget carrier Tiger Airways can appeal against the Philippine government's decision to suspend its flights from Macau to Clark International Airport, a senior official of the Civil Aeronautics Board (CAB) said yesterday.p> Even if Tiger's application for a permanent permit to operate its Macau stopover were approved, the CAB said it would still need the carrier to pay a fine and other penalties for alleged violations.

'It can file a motion for reconsideration. But it would still be subject to sanctions. Most probably, there would be monetary penalties,' CAB deputy executive director Carmelo Arcilla told The Straits Times. He did not say how much the fine would be.

The CAB had denied Tiger's request to renew its provisional authority to operate its Macau stopover, which expired on Dec 31, after it was found to have violated certain regulations.

The alleged violations included marketing the flights before the provisional authority or the permanent permit was even filed, failure to submit rates for approval and claiming falsely that the rates had been approved.

Although Tiger Airways started its Macau stopover last Oct 30, Mr Arcilla said the CAB learned the airline had been selling Macau tickets as early as July last year.

He said that despite warnings from the CAB, Tiger persisted in its 'blatant disregard of the violations'.

The suspension did not affect the carrier's direct Singapore to Clark flights.

Tiger Airways said it was surprised to read reports about its alleged violations.

'The airline has...asked its representatives in the Philippines to obtain details of these alleged violations so that it can respond promptly to them,' it said in a statement.

The carrier said it had applied for a permanent operating permit for its Macau to Clark route and expected a decision next week.

'Payment of the penalties (will be) a precondition to the granting of the permanent permit,' said the CAB's Mr Arcilla.

The airline has been given a special permit to continue its Singapore-Macau-Clark flights until Jan 20 to accomodate passengers who have bought tickets in advance.

Tiger Airways is 49 per cent owned by Singapore Airlines, while Singapore's investment company, Temasek Holdings, owns 11 per cent.

Mr Tony Ryan, the founder of European budget airline Ryanair, and American private investors Indigo Partners are the other owners in the venture.

luz@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 19 Jan 2006

LOW-COST AIRLINES SYMPOSIUM
SATS loses Tiger's ground services job to Swissport

It's disappointed, but says it has got three new clients in the past 12 months

By VEN SREENIVASAN

CHANGI Airport's new kid on the block, Swissport International, has pulled off a major coup by wresting Tiger Airways' ground services business from the airport's biggest ground services specialist and sister company, Singapore Airport Terminal Services (SATS).

Tiger Airways, which is 49 per cent owned by Singapore Airlines (SIA), has appointed Swissport as its dedicated ground handler for its Singapore hub operations at the new Changi Budget Terminal.

Tiger Airways, which is the only tenant at the Budget Terminal at the moment, will launch its first flights from Asia's first dedicated low-cost terminal on March 26.

The Tiger Airways contract more than doubles Swissport's business, from the current eight flights a day by five customers to 18 flights a day with six customers. And this figure will rise this year as Tiger Airways takes delivery of five more A320 planes and expands its route networks and frequency. It currently has four planes operating 13 routes.

The airline's CEO, Tony Davis, explained that the decision was based on Swissport's 'impressive track record' serving budget carriers in Europe.

'The move to the new Budget Terminal gives us an opportunity to start on a clean slate with ground operations geared exclusively to cater for our low-cost airline model,' Mr Davis told reporters on the sidelines of the two-day 3rd Annual Asia Pacific Low-Cost Airline Symposium yesterday. 'The aim is to raise efficiency and lower costs further,' he said.

Swissport, which set up operations as Changi's third ground services player last year, has a presence at 180 airports in 39 countries worldwide. But it is also an expert in low-cost airline ground services, managing some 190 flights daily for RyanAir in the UK and easyJet at 25 airports in Europe.

A delighted Swissport managing director, Peter Kohl, said the five-year deal with Tiger Airways was a major contract, not just in terms of revenue but also in establishing Swissport as a player in a fast-growing low-cost carrier market in this region.

'It gives us an opportunity to put ourselves on the regional map at the first low-cost terminal in Asia,' he said.

Previously, he added, Tiger Airways had to settle for a 'hybrid arrangement' at Terminal 1 where equipment and people were cross-shared between the legacy carriers and the low-cost carriers.

'At the Budget Terminal, everything and everyone will be dedicated to the narrow-bodied, low-cost operations of Tiger Airways. For example, our pushback tractors will be those designed specifically for narrow-bodied planes, and passenger boarding steps will be rolled in and out manually.'

He said Swissport would soon fly in some of its expert staff and equipment from Europe over the next few weeks as it sets up operations at the Budget Terminal.

And with its S$15 million 18,000 sq ft cargo warehouse at Changi Cargo Complex ready for operation, Swissport expects to see even more activity at its Changi facility.

The warehouse, the biggest in Swissport's global stable, is currently used by Indonesia's Adam Air. But utilisation will rise significantly next month when parent Swiss WorldCargo and other clients start using the facility.

Meanwhile, SATS took the news of the loss of the Tiger Airways ground services business in its stride.

'We are, of course, disappointed with their decision, having supported Tiger Airways since its start-up in mid-September 2004,' said a SATS spokesman. 'We have offered them a very competitive package for the services they requested us to provide, and we would have continued to provide them with the same high standard of service quality. Winning and losing clients is in the normal course of our business. Just as SATS has lost the Tiger Airways' ground handling account, we have secured three additional clients - Air Sahara, Jet Airways and Pakistan International Airlines - in the last 12 months.'

SATS said the loss of a single client like Tiger Airways was not material to its earnings. But the move has fuelled some speculation among analysts about whether the migration had anything to do with SIA's impending divestment of its 85-per-cent-held subsidiary.

SATS still serves Singapore's two other budget carriers - Jetstar Asia and Valuair. But these could also go if it loses part or all of its ground services contract with Australian carrier Qantas. SATS' apron and passenger handling deal with Qantas has expired and is up for renewal.

SATS' stock fell 7 cents to $2.36 yesterday.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

19 January 2006

Philippines extends Tiger Airways' temporary permit to Jan 27
By Loh Kim Chin, Channel NewsAsia

SINGAPORE : The Philippines Civil Aeronautics Board has extended Tiger Airways' temporary permit allowing the airline to operate its Manila (Clark) to Macau route for another seven days.

This means the low-cost carrier will now be able to fly the route until next Friday pending a decision on its application for a permanent operating permit.

Tiger Airways says it understands a decision on a permanent permit may be made before next week's deadline.

It adds that its flights between Singapore and Manila (Clark) have not been affected and will continue to operate normally. - CNA /ct

Copyright 2006 MCN International Pte Ltd

Business Times - 24 Jan 2006

Jetstar launches Bangalore service

By VEN SREENIVASAN

(SINGAPORE) Qantas-controlled Jetstar Asia touched down in Bangalore yesterday, making it the first foreign low-cost carrier to fly to the Indian IT hub in Karnataka. Jetstar will operate four flights a week between Changi and Bangalore's International Airport using its A320 aircraft. The flights take off from Singapore at 1.25 am every Monday, Wednesday Thursday, Saturday and Sunday, touching down in Bangalore at 2:55 am local time. The return flight will depart from Bangalore at 3:45 am, arriving in Singapore at 10:25 am the same morning.

Fares will start from S$228 - a third of what it costs on the traditional carriers plying the route - with ticket sales available via the website www.JetstarAsia.com, through Jetstar Asia call centre, or local travel agents. Neil Thompson, acting Jetstar CEO, expects loads on the route to be strong. 'We are also confident that we'll not only be able to take market share, but also tap into the latent demand that exists in the market.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 07 Feb 2006

Jetstar Asia to get fourth new CEO in a year

By VEN SREENIVASAN

QANTAS-controlled budget airline Jetstar Asia will soon get its fourth chief executive in just over a year. The new boss is believed to be a Singapore resident - and female.

BT understands from well-placed sources that after a two month head-hunting exercise, Qantas has finally chosen a replacement for Neil Thompson, who took over at Jetstar Asia temporarily when his predecessor Ken Ryan had to move late last year.

The new chief executive is expected to be announced within a week or so.

At the same time, Qantas itself could announce top-level management changes. These could involve chief spokesman and chief financial officer Peter Gregg taking over as head of the group from its well-known and outspoken current chief executive and Jetstar Asia chairman Geoff Dixon.

Several senior officials and Jetstar Asia board members, including Mr Gregg and Jetstar Australia chief executive Alan Joyce, were in Singapore recently to discuss operations and finalise the appointment of Jetstar Asia's new chief executive.

Current chief executive Mr Thompson, an 18-year Qantas veteran who managed the group's frequent flyer programme in Australia before heading to Singapore in December, will move back to its Sydney headquarters next month. He arrived in Singapore late last year after his predecessor Mr Ryan had to return to Sydney because of family circumstances.

Mr Ryan had taken over at Jetstar Asia from Con Korfiatis, who got the carrier off the ground here in late 2004. Both Mr Ryan and Mr Korfiatis are back at the Qantas head office.

Another high-profile departure from Jetstar Asia was head of marketing Dorit Grueber, who left in December to set up her own branding and marketing consultancy.

No other executive changes are anticipated at the budget carrier. Paul Daff remains head of commercial affairs, while Greg Thompson remains chief pilot on secondment from Qantas. And Mike Hewitt from Qantas is expected to stay on as head of ground and route operations.

Jetstar Asia and sister discount carrier Valuair are part of Orange Star, an airline holding company set up by Qantas after it took over the struggling Valuair last year.

Jetstar focuses on destinations in Thailand, Philippines, Indochina, India, Taiwan and elsewhere in the region, while Valuair flies to the Indonesian cities of Surabaya, Denpasar and Jakarta.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

09 February 2006

Budget carrier JetStar Asia appoints Singaporean as CEO

SINGAPORE : A Singaporean with extensive experience in the travel and leisure industry has been appointed chief executive of budget carrier JetStar Asia, the airline's parent firm said Thursday.

Chong Phit Lian will replace Ken Ryan, who returned to Sydney in December to take up a new senior role at Qantas, JetStar Asia's main shareholder, Orangestar Holdings Pte Ltd said in a statement.

Neil Thompson, another Qantas executive, had been JetStar Asia's acting chief executive officer following Ryan's departure.

Chong is currently chief executive and president of The Singapore Mint.

She is also the director of several companies in travel, hotel, lifestyle and leisure businesses within Singapore's SembCorp Industries Group covering Singapore, Malaysia, China and Spain, the statement said.

Chong will be the first Singaporean chief executive of JetStar Asia, which was launched in 2004 and is 49 percent owned by Australian carrier Qantas.

JetStar Asia absorbed Valuair, a Singaporean budget carrier, last year amid increasing regional competition. - AFP/ch

Copyright © 2006 MCN International Pte Ltd

Feb 11, 2006
THINKING ALOUD
There's big money in low-cost travel

By Susan Long

ON A holiday in Darwin recently, not one person bothered to ask me about the hanging of Australian drug trafficker Nguyen Tuong Van.

But practically everyone I met - from taxi drivers, luggage handlers, shopkeepers to park rangers - asked about something closer to their heart: 'Singapore? Are you here on those cheap Tiger tickets?'

They had all read about the amazing Tiger Airways deal in the Northern Territory News: Singapore to Darwin one-way, starting from $1.

They went over their holiday plans with me, checking the best times to visit the Night Safari, swim at Sentosa and dine at Equinox.

Their enthusiasm fleshed out perhaps the most unexplored and unplumbed dimension of the budget airline revolution.

Ever since Singapore's low-cost carriers (LCCs) took flight nearly two years ago, the national preoccupation has been what new bargain destinations to add to our weekend getaway repertoire.

But what's in it for us - in the long haul - is the larger, unexplored potential of all these second- and third-tier cities, like Padang, Surabaya, Danang, Hat Yai and Darwin, that our carriers now jet to.

Previously landlocked by rigid international airline routes and sky-high fares, they are now being set free by the budget revolution.

The populations (read: potential inbound passengers) at the other ends of these budget routes are enormous: nine million in Bangkok; 6.5 million in Bangalore; 5.3 million in Ho Chi Minh City; three million in Hanoi; three million in Surabaya; and 1.5 million in Manila.

Many of these are recently affluent frontiers with a growing disposable income and a newly whetted appetite for travel. For several like Darwin, Singapore is the nearest big city (4 1/2 hours away), geographically closer than Sydney.

It is also a cheaper gateway to catch a connecting flight too. Qantas, for example, charges as much as A$400 (S$480) one-way from Darwin to Sydney, compared with Tiger Airways' A$46 Internet deal from Darwin to Singapore.

Such crazy, never-seen-before fares are shaking up regional travel patterns.

Hat Yai's denizens used to have to backtrack north to Bangkok in order to fly down south to Singapore - until September 2004. Since then, one packed Tiger plane wings here direct from Hat Yai every day, at fares starting from $9.98.

For the first time, the relatives of Filipino maids are catching budget flights to Singapore to see the Merlion and where their daughters, wives and mothers work, instead of having to wait for their biennial visits home.

It is no longer one-way traffic, thanks to Tiger's $49.98 fares from Clark International Airport, an hour's drive north of Manila.

Such affordability has made us all rethink travel as less of a major purchase and more a routine part of life, equivalent to buying a pair of shoes or eating at a restaurant.

Soon, this region will probably see another well-documented effect of scandalously low fares - rising second home ownership.

Just as in Europe where Ryanair's cheap flights made it affordable for Britain's middle class to snap up vacation homes in the Loire Valley, Burgundy and Provence, more Singaporeans - and other affluent Asians - will start picking up real estate bargains regionally.

Besides that, wherever LCCs have taken off, a tourism bubble has followed.

Last year, not coincidentally the first full year of operations for the three LCCs based here, saw Singapore welcoming a record 8.94 million tourists. They stayed a record 30.6 million days and spent a record $10.8 billion.

This year, Tiger Airways - which will soon hit its one million passenger mark - is adding seven new destinations to its current 13. Two of them are southern China cities to be announced soon. Half of its routes are to ravenous new markets where no other airline flies direct.

With all this momentum, I am glad we forged ahead with plans to open a dedicated LCC airport, despite initial scepticism about its viability, with only one customer, Tiger, so far.

For one, building capacity ahead of demand has always been a winning aspect of Singapore's airport strategy.

For another, as Mr Peter Harbison, executive chairman of the Sydney-based Centre for Asia Pacific Aviation, puts it, it declares in sky-writing to the industry: 'We welcome LCCs.'

But as Singapore braces itself for the first plane to hit the tarmac of our very literally named Budget Terminal next month, it is time to take stock of the work that lies ahead.

How prepared is Singapore for the onslaught of budget travellers headed our way? Do we have an encompassing breadth of experiences at varying price points - in accommodation, retail, leisure - to cater to a wide cross-section of budgets?

Are we hungry enough to cast aside our prejudices to cater to first-time, Third World tourists toting newly issued passports and striped nylon luggage? Most of all, with low fares stimulating the trend of multiple short-haul trips, do we have enough to sustain the interest of the second- and third-time visitor?

Because budget does not mean shoestring. In fact, the reverse is often true.

Citing studies done by Britain's Cranfield University, Tiger Airways chief executive Tony Davis says that budget fares stimulated the greatest surge in travel among the middle class, rather than the lower-income group.

And if the fares were low, anecdotally, travellers spent more on hotels, meals, sightseeing and shopping.

'For example, some Singaporeans fly on Tiger and stay at Oriental Hotel in Bangkok. They worked out that if they fly budget and stay in a five-star hotel, it works out the same as using a full service airline and staying in a three-star hotel,' he says.

(The Oriental Bangkok, one of the world's most luxurious hotels, costs upwards of $500 a night on discount websites.)

So, instead of being jittery about building one of the area's first low-cost terminals, it is likely we would soon be talking expansion.

The writer is editor of the Saturday Special Report.

suelong@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 16 Feb 2006

Tiger to cut check-in time at Budget Terminal

(SINGAPORE) Tiger Airways is confident that the new Budget Terminal at Changi Airport will help it cut check-in time for passengers.

The airline's chief executive Tony Davis said yesterday that the design of the terminal and the location of Tiger's check-in facilities mean that passengers will get to aircraft boarding gates faster.

'This allows us to reduce the check-in deadline from the current 45 minutes to just 30 minutes prior to scheduled departure time,' he said.

'However, we still encourage passengers to check-in two hours before departure time and have time to enjoy the facilities at the new Budget Terminal.'

Tiger Airways is the only airline that has so far committed to use the $45 million terminal, adjacent to Changi's Terminal 2, though the Civil Aviation Authority of Singapore has indicated that it is in talks with several carriers.

Tiger Airway's local rival, Jetstar Asia, has declined to move to the new terminal, as has privately owned Indonesian carrier Adam Air.

This is despite the fact that airlines will save $165 on the use of an aerobridge, while the passenger service charge is just $7 - half that at Terminals 1 and 2.

Tiger Airways, which has appointed Swissport its ground services agent at the Budget Terminal, will start using the facility as soon as it opens on March 26.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Tiger Airways launches sales of flights to Chinese cities

Fares to Haikou, Guangzhou and Shenzhen starts from SGD49.98 one way

SINGAPORE, 23 February 2006. Tiger Airways, Singapore's low fare airline, will start seat sales to the three Chinese cities of Haikou, Guangzhou and Shenzhen from tomorrow (24 Feb).

Tiger Airways will start flying to Shenzhen (SZX) from 15 April 2006, while flights to Haikou (HAK) and Guangzhou (CAN) will commence from 26 April and 27 April 2006, respectively. Fares for all flights will start from SGD49.98 (excluding taxes) one way.

"Once again Tiger Airways is offering the cheapest available fare on its latest routes. With fares as low as SGD49.98* one way, flying between China and Singapore will become truly affordable. We hope travelers from both countries will take advantage of these incredible offers to visit each other and strengthen the commercial and social ties that already exist between the two communities," said Tiger Airways CEO, Tony Davis.

Tiger Airways will initially be flying four times a week to Haikou and three times a week to both Guangzhou and Shenzhen.

http://www.tigerairways.com/about/news_2006.php

Feb 27, 2006
Why Tiger Airways chose new Budget Terminal

I HAVE followed the recent debate on the new Budget Terminal with some interest.

Thanks to the Government's strategic vision, Singapore today has one of the most developed and competitive aviation sectors in the world.

Local consumers have, of late, benefited from unprecedented price competition and choice as local and foreign airlines operating here offer a vast array of products and destinations.

With the advent of low-cost airlines, Singapore enjoys record growth in visitor numbers, a buoyant retail sector and increased employment in the aviation industry.

As many of our foreign competitors are based in countries with lower operating costs, they already enjoy a significantly lower cost base than airlines such as Tiger Airways. The new Budget Terminal has been designed around the facilities already enjoyed by the world's most successful low-cost airlines.

The simplicity and efficiency of operations at the new Budget Terminal will make it possible for us to allow passengers to check in up to 30 minutes before departure time when we start operations there on March 26, rather than the current 45 minutes.

We believe the lower costs and operational efficiencies available at the Budget Terminal will provide an important component in the ability of Tiger Airways to continue to offer customers the lowest possible air fares, not only in Singapore but also in our expanding range of overseas destinations.

Tony Davis
CEO
Tiger Airways
Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 27 Feb 2006

Tiger Airways in talks with several parties

SINGAPORE - Singapore budget carrier Tiger Airways said on Monday it was in discussions with several parties but declined to confirm a newspaper report that it may buy a stake in Indonesian low-fare airline Adam Air.

'Tiger Airways confirms that we are in discussions with several parties but are unable to disclose any more information at this point in time,' the carrier said in a statement when asked to confirm the report by the Bisnis Indonesia newspaper.

The report quoted Adam Air president Adam Adhitya Suherman as saying PT Adam Sky Connection Airlines (Adam Air) was drafting options for cooperation with Tiger Airways, including selling it a 5-20 per cent stake. Adam Air has offered a further 20 per cent stake to Australia's Qantas Airways, Mr Suherman said, adding he hoped both companies would buy in.

Founded in 2002, Adam Air serves mostly domestic routes, with Singapore and Malaysia's Penang as its only international destinations. Tiger Airways is 49 per cent owned by Singapore Airlines. -- AFP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Feb 28, 2006
Adam Air offers Tiger a stake of up to 49%

By Karamjit Kaur
Aviation Correspondent

INDONESIAN low-cost carrier Adam Air plans to offer flights from Singapore to Surabaya, Medan and Denpasar in Bali this year.

The carrier, which currently flies between Changi and Jakarta, has also offered Singapore's Tiger Airways a stake of up to 49 per cent in its business.

Adam Air president Adam Adhitya Suherman told The Straits Times yesterday: 'We are in discussions with eight parties, including Tiger Airways, Australia's Qantas and several financial institutions.'

He declined to disclose the other parties but said some are Singapore-based companies.

Mr Suherman said he plans to list his airline on the stock exchange within two years. 'We want to launch an initial public offer possibly in Singapore and Jakarta in 2008.'

Adam Air announced a US$2 billion (S$3.2 billion) deal at the Asian Aerospace air show last week to buy 30 new Airbus 320 planes. It intends to beef up its fleet to 60 aircraft in five years, said Mr Suherman.

The airline now serves mainly domestic routes and also flies between Medan and Penang.

A stake in Adam Air will give Tiger Airways the means to expand operations in a country which has barred foreign budget carriers from flying to the key cities of Jakarta, Surabaya, Medan and Denpasar.

Last week, it was reported that Indonesia's debt-ridden PT Merpati Nusantara Airlines may allow Tiger and three other carriers to fly some of its routes. Industry observers speculated that Tiger could end up taking a stake in Merpati.

When contacted about buying a stake in Adam Air, a Tiger Airways spokesman confirmed that the airline was in discussion with several parties.

In December last year, Tiger chief executive officer Tony Davis said the airline hoped to launch its first joint-venture carrier in Asia this year. He said then that the plan was for Tiger to be a 'pan-regional carrier' because partnerships were key if the airline was to expand in a region where traffic rights were limited.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 01 Mar 2006

NEWS ANALYSIS
Tiger Airways and Adam Air can work together

By VEN SREENIVASAN

(SINGAPORE) Is Singapore budget carrier Tiger Airways buying a 49 per cent stake in Indonesia's Adam Air?

That sounds a bit like a template of AirAsia's acquisition of a 49 per cent chunk of Indonesia's Ewair two years ago. That entity is now known as Indonesia AirAsia.

But the thought of Tiger buying a huge chunk of Adam Air seems somewhat incredulous. For one thing, Adam Air is no Ewair. It is a full service airline, albeit not in the same league as Singapore Airlines or Emirates.

The family-controlled company has a fleet of 20 ageing 737 aircraft which ply some 30 routes, including two international destinations (Penang and Singapore).

The airline has just signed a letter of intent with Airbus Industrie for 30 Airbus A380 aircraft. Six of these will be leased via Amsterdam-based Aercap, while the plans for the take-up of the remaining 24 planes are still up in the air as the airline evaluates funding possibilities.

When this reporter met Adam Adhitya Suherman, the president-director of the airline, during the Asian Aerospace event here last week, he explained that his company was looking at two funding possibilities: private equity and a dual public listing in Jakarta and Singapore. 'We are speaking to several parties, including Qantas,' he said. 'But even after we get a strategic partner in, we remain focused on proceeding with a dual Singapore-Jakarta listing in 2008.'

One can quite easily see how Qantas might be interested, especially if the plan is to get some kind of strategic advantage for its Singapore-based associate Jetstar Asia, whose operating model is most similar to Adam Air's. Such a tie-up would enable Jetstar partner Valuair to expand to new Indonesian destinations beyond Jakarta, Surabaya and Denpasar. In return, Adam Air gets cash to expand its fleet to feed more routes to its already considerable domestic market.

Of course, one cannot entirely count out Tiger. After all, it has cash-rich parents in Temasek Holdings and SIA. And Tiger's boss Tony Davis has said several times before that given the closed regional skies, the best way for his airline to expand its footprint would be to tie up with domestic players.

Tony Fernandes of AirAsia has shown how it can be done in Thailand and Indonesia.

But then, Adam and Tiger are not the same as AirAsia and Ewair.

Tiger - which has yet to show a profit - prides itself as a true-blue low cost, low budget, low fare carrier in the genre of Ryanair (whose controlling family owns a stake in Tiger).

Adam, on the other hand, is a model which is closer to Silkair and Valuair. Like the latter, it offers a 20 kg baggage allowance, serves food and beverage on board, and is not constrained by tight turnaround times. And Mr Suherman has firmly rejected the idea of using the Singapore Low Cost Terminal.

'We are not a low cost, no frills airline,' he said. 'Our passengers expect some comfort and frills.'

But that is not to say the two can't work together.

Given Tiger's growing regional footprint (the airline has rights to fly to over a dozen destinations dotting almost every country between India and China, including destinations in the two Asian giants), and Adam Air's domestic network (where it is the second biggest player in terms of passenger carriage and routes), there are huge possibilities for cooperative arrangements.

But a 49 per cent stake?

As one wit put it, there's a higher chance of spotting the big cat on the streets of Jakarta.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

March 14, 2006
Tiger Airways eyes tie-up with regional carrier

There is a good chance that Tiger Airways will set up its first joint-venture airline outside Singapore, by taking a stake in an existing Indonesian carrier in a few months.

Chief executive officer Tony Davis said the budget airline, which celebrated its one-millionth passenger today, is 'determined' to launch 'at least one overseas base this year'.

He would not confirm where but Indonesia is clearly high on the list.

Mr Davis who was at Changi Airport to welcome Tiger's one-millionth passenger told reporters: 'Indonesia is clearly a country we have lots of interest in and we feel there is great potential for low-cost operations.

'There is also a real shortage of quality airline services and a great propensity to travel. I would definitely like to do something with an airline there.'

Indonesia's Adam Air and PT Merpati Nusantara Airlines both said last month they were talking to Tiger.

Tiger, which started operations in September 2004, now flies to 13 destinations in seven countries, including Singapore. It will add three cities in China - Guangzhou, Haikou and Shenzhen - to its network next month.

Mr Davis said of the airline's growth so far: 'We are absolutely delighted to hit the one-millionth passenger mark so early in our second year of operations.

'This shows that the popularity of low cost air travel has taken off in Singapore and the region.'

Equally delighted was the one-millionth passenger, Mr Michael Rider, a 34-year-old US air force officer on training here.

He came back to Singapore after a holiday in Phuket with his wife. He took home $2,000 worth of flight and hotel vouchers.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

April 5, 2006
Jetstar, Valuair owner to offer shares to existing investors
EGM on bid to raise $36m went well; airlines are here to stay: Orangestar CEO

By Karamjit Kaur
Aviation Correspondent

THE owner of low-cost carriers Jetstar Asia and Valuair will offer new shares to existing shareholders first as it attempts to raise fresh funds of $36 million.

Orangestar Investment Holdings and its chief executive officer (CEO), Ms Chong Phit Lian, were also quick to assure consumers that the airlines are here to stay.

The Straits Times reported yesterday that Orangestar has almost exhausted the $60 million that shareholders, including Qantas and Temasek Holdings, injected when Jetstar and Valuair merged last July.

Its cash crunch has led to a proposal to issue 144 million shares at 25 cents each, a 75 per cent discount to the prevailing price.

An extraordinary general meeting held in Singapore on Monday 'ended well', Ms Chong told The Straits Times.

On whether the existing shareholders agreed to pump in more money, she said: 'So far, the indications have been positive but we will wait for the official word.'

Apart from Qantas, which owns 44.5 per cent of the company, and Temasek with 31 per cent, Orangestar's other shareholders include Star Cruises and businessmen Tony Chew and Wong Fong Fui.

If they do not want the new shares, the company will look at other alternatives, Ms Chong said.

Analysts said one option would be to raise money from the debt market with Qantas as guarantor.

At Monday's meeting, shareholders also accepted management's recommendation to cut the fleet size from eight to six planes to boost load rates.

Since they took to the skies in 2004, Valuair and Jetstar Asia have both been hit by sky-high fuel prices, aggressive competition and protected skies.

Tough conditions have hit all airlines, said Mr Shukor Yusof, Standard & Poor's aviation editor, adding that the industry is a 'very difficult' one.

Still, Tiger Airways - a partnership between Singapore Airlines, Temasek, the founders of Ireland's Ryanair and US-based business strategy consultants Indigo Partners - could not resist taking a dig at the competition.

In a press release yesterday, CEO Tony Davis offered to take over some of the routes from Jetstar Asia and Valuair if the airlines wanted to give them up.

He added that Tiger will take delivery of its sixth jet next week and another six are expected before the end of next year.

Ms Chong said with a laugh: 'If he wants my routes, he should write to me and not to the press.'

She added on a more serious note: 'At the end of the day, we are all here to serve the consumer. Competition is always good because it means better choices.'

Ms Chong - CEO for just 10 days, has no regrets about taking on such a testing role: 'I knew it would be very challenging.'

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

04 April 2006

Tiger Airways willing to take over Jetstar Asia-Valuair regional routes

SINGAPORE : Tiger Airways has raised the heat against Jetstar and Valuair.

CEO Tony Davis said on Tuesday that Tiger was well placed to take over some of Jetstar Asia-Valuair's regional routes if they wanted to give them up.

The comments came following reports that Jetstar and Valuair were in need of more funds.

2005 was a particularly challenging time as demand for travel took a dive following the tsunami disaster in December 2004.

Jetstar and Valuair were forced to merge in July last year under the company Orangestar.

The company confirmed reports on Tuesday that it was seeking fresh funds and that the information was contained in a circular to shareholders.

No details were given but Orangestar was said to be seeking some S$36 million.

It was also said to be cutting its fleet size.

In contrast, Tiger has been cited as one of the low cost carriers that will survive the consolidation.

The airline's expansion plans appear to be on track as it takes delivery of its new Airbus planes and adds services to India and China.

Responding to questions, CEO Tony Davis said Tiger was ready to take over some of Jetstar Asia-Valuair regional routes. - CNA /ls

Copyright © 2006 MCN International Pte Ltd

April 12, 2006
Qantas to axe Australian Airlines, expand Jetstar
It will focus on low-cost carrier as part of efforts to reclaim market share in international routes

QANTAS Airways will axe its Queensland-based Australian Airlines brand and focus on building its discount carrier Jetstar, expanding its international routes, alongside the full-service carrier.

Jetstar's cost base is 40 per cent less than Qantas' and 30 per cent less than Australian Airlines' - a key advantage in the face of record-high jet fuel prices.

'Because of the success of Jetstar, its ability to get a very, very competitive cost base, also the success of Qantas itself, we felt that we only wanted two brands,' Qantas chief executive (CEO) Geoff Dixon told reporters yesterday. 'Jetstar will be grown aggressively over the next three years while we continue to expand Qantas' international operations.'

He is expanding Jetstar to draw back international travellers from rivals Singapore Airlines and Emirates, which have cut Qantas' overseas market share in Australia by 11 per cent in the past 10 years.

Australian Airlines, a one-class airline that flies to select holiday destinations in Asia, had recently struggled to reach growth targets.

Qantas said Jetstar would fly to new destinations including Vietnam and Thailand, and add new daily flights from Sydney to Osaka.

Jetstar had created 1,300 jobs since it began operating in 2004 and expected a further 550 jobs to be created by the middle of next year, Mr Dixon added.

It will also put on five flights a week to Honolulu, alongside three existing Qantas flights a week.

The proposed new international route network is subject to regulatory approval.

Jetstar was originally set up to compete in the domestic market with budget airline Virgin Blue. It will initially use six Airbus A330-200 aircraft before upgrading to 12 Boeing 787s.

The 311-seat B-787 Dreamliners, which will join the fleet in August 2008, are being bought as part of Qantas's A$20 billion (S$23.5 billion) fleet reinvestment.

Jetstar CEO Alan Joyce said the budget carrier plans to grow first by reclaiming market share on international routes, with Qantas' share out of Australia now at 30 per cent. 'With the 787s, we're planning to have a network hopefully some day that will fly to Europe. Our intention is to recover the Qantas share in a number of different markets.'

Qantas shares fell 1.1 per cent to A$3.50 in a firmer market, with rising oil prices weighing on the airline.

REUTERS, AGENCE FRANCE-PRESSE, BLOOMBERG NEWS

STRONG GROWTH

Jetstar would fly to new destinations including Vietnam and Thailand, and add new daily flights from Sydney to Osaka. It will also put on five flights a week to Honolulu

Copyright © 2005 Singapore Press Holdings. All rights reserved

Business Times - 14 Apr 2006

Jetstar drops Kolkata flights

By VEN SREENIVASAN

(SINGAPORE) In what appears to be a much anticipated consolidation of its operations, Qantas associate Jetstar Asia announced yesterday that it would be suspending flights to the Indian city of Kolkata from April 30.

It said in a statement that flights to Jetstar Asia's other destinations, including Bangalore, will operate on schedule.

'We're focused on strengthening our two airlines and as a result we've decided to suspend flights to Kolkata. Affected passengers will be contacted and offered a full refund, or a change in itinerary to the higher value Bangalore-Singapore sector,' said Chong Phit Lian, CEO of Jetstar Asia and Valuair.

The route restructuring comes as the two Qanas associates continue to struggle amid soaring fuel prices, low loads, cut-throat competition and closed skies.

Orange Star, the 44.5 per cent-owned Qantas airline holding company for the two budget carriers, last week asked shareholders to cough up another S$36 million to keep its two airlines flying. It has proposed an issue of 144 million shares at 25 cents each, a 75 per cent discount to the prevailing price.

While confirming that Orange Star would cut its fleet size from eight to six A320 planes as part of its restructuring, a source said load factor was the primary reason for suspending the Kolkata service.

Jetstar Asia was started in late 2004 with an initial capital - payable in tranches - of $100 million. Valuair raised about $40 million before Qantas came on board in July last year.

Besides Qantas, the other big partners in Orange Star is Temasek Holdings, with about 31 per cent.

Jetstar Asia started its Kolkata service amid much celebration last year as it marked the first time that India had allowed a foreign budget carrier into its territory. Subsequently, it obtained rights to operate four weekly flights to India's IT hub of Bangalore.

Another Singapore budget airline, Tiger Airways, obtained rights to fly to Kolkata almost six months ago, but has not started services due to lack of slots. It is also waiting to take delivery of three more planes.

This is not the first time that Jetstar Asia has cut routes. The carrier, which currently flies to about a dozen destinations, gave up its Singapore-Pattaya run after loads dipped following the December 2004 tsunami disaster. But the struggling Qantas associates could get a new lease of life later this year when Australia-based Jetstar launches mid and long-haul services as Jetstar International.

Qantas' chief financial officer Peter Gregg, who is widely expected to take the helm at Qantas when chief executive Geoff Dixon retires, said that Jetstar International would link its flights with those operated by Jetstar Asia, and overlay the mainline operations on top of that to give Qantas a much larger Pan-Asian footprint.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

April 26, 2006
Tiger's China flights take off
Fares are some $200 less than full-service airlines

By Karamjit Kaur
Aviation Correspondent

TRAVELLERS to southern China can now enjoy low fares with Tiger Airways - the first budget airline to fly between Singapore and China - starting with flights to Guangzhou, Haikou and Shenzhen.

Return fares, excluding taxes and surcharges, start at $124, or about $200 less than what full-service airlines like Singapore Airlines (SIA) and China Southern charge.

Tiger passengers will also pay a lower airport tax in Singapore since the airline operates out of Changi's one-month-old Budget Terminal where the departure tax is $13, compared to $21 at the two main terminals.

The first flight to Guangzhou took off from the new terminal yesterday.

Tiger is flying thrice a week to Guangzhou, according to its website. But already, there are plans to fly there more often, said the airline's chief executive officer Tony Davis in a statement yesterday. He added that details will follow soon.

Tiger, which started operating in 2004, will fly to Haikou four times a week and to Shenzhen three times a week, according to its website. Its maiden fight to Haikou takes off today, and to Shenzhen tomorrow.

The airline's entry into the Singapore-China market is expected to give the tourism and hospitality industry in both countries a shot in the arm, observers said.

Mr Kien Nguan Tee, Singapore Tourism Board's assistant area director (South China), said in a statement: 'This development in air transport connecting the two countries provides more choice for Chinese travellers coming to Singapore for business and leisure.'

Air traffic between the two countries has more than doubled from 134 flights a week in February 2002 to 338 flights a week in February this year, according to the Civil Aviation Authority of Singapore. Passenger numbers have jumped too, from 1.6 million in 2002 to almost 2.5 million last year.

With Tiger in the picture, consumers can also look forward to full-service airlines cutting fares to protect their turf as they have done in other markets also served by budget airlines, said Ms Alicia Seah, general manager of SA Tours.

Tiger Airways - a partnership between SIA, Temasek, the founders of Ireland's Ryanair and United States-based business strategy consultants Indigo Partners - is one of three Singapore-registered budget carriers.

The other two - Jetstar Asia and Valuair - are both owned and run by Orangestar Investment Holdings, backed by Australia's Qantas.

karam@sph.com.sg
Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 03 May 2006

Orangestar shareholders set to take up 80% of rights issue

Proceeds of $36m needed to keep Jetstar, Valuair in business

By VEN SREENIVASAN

(SINGAPORE) Shareholders of Orangestar, which operates Jetstar Asia and Valuair, have agreed to subscribe to most of the rights shares that the company is placing out in a bid to raise $36 million.

Orangestar Investment Holdings chief executive officer Chong Phit Lian said that key shareholders had committed themselves to take up about 80 per cent of the 144 million shares on offer at 25 cents each.

'We will be placing out the remaining 20 per cent of the shares to other investors who have indicated interest,' she said, without disclosing who these parties are.

The shares, which are being issued at a 75 per cent discount to the prevailing price, are intended to raise critically needed funds to keep Orangestar's two budget airlines flying.

Orangestar was created last year when Qantas-led investors controlling Jetstar Asia took over equally-troubled Valuair, and subsequently placed both airlines under the Orangestar umbrella, though keeping them as two separate and distinct sister airlines. But the two carriers have continued to struggle amid soaring fuel prices, aggressive competition and protected skies.

It is estimated that they burnt up more than $100 million in under two years of operations, and faced the distinct possibility of running out of money this year.

At a meeting last month, Orangestar shareholders even voted to scale down the fleet from eight A320 planes to just six.

This comes after Jetstar last year declined to take delivery of several leased planes.

It is uncertain if this decision to scale down the fleet had anything to do with Jetstar's decision to suddenly stop its Singapore-Kolkata service from this month.

Meanwhile, there has also been talk within local aviation circles that Valuair might pull out of either its Surabaya or Denpasar service, both of which are said to have relatively low loads. Besides these two cities, it also flies to Jakarta.

But Ms Chong said that there were no such plans at the moment.

Orangestar's leading shareholder is Qantas, with a 44.5 per cent stake.

Singapore investment company Temasek Holdings is the second biggest shareholder with just under 30 per cent, while minorities led by former Valuair shareholders and individuals like Tony Chew, chairman of Del Monte Pacific, hold the remainder.

Ms Chong did not reveal which of these shareholders declined to pump in more funds.

But she said that both Qantas and Temasek - the key shareholders - remained firmly committed to the company, which suggests that some of the minorities may have decided to cut their losses and stay out.

Ms Chong, who is the Singapore-based airline group's fourth chief executive - and the first Singaporean to head the company - sounded upbeat about the prospects for Jetstar going forward.

'As you know, Qantas has decided to shut down Australian Airlines, and its routes will be taken over by Jetstar International,' she said.

'This gives us an opportunity to expand into interlining operations with Jetstar International at our common destinations. We will be in a position to connect passengers to and from these destinations into our route network.'

She also added that Orangestar would maintain two distinct brands for now, despite criticism that it would be more cost-efficient to merge the two under one brand.

'There are issues of AOC (Air Operator's Certificate) which have to be sorted out,' she said, in a reference to Singapore's 'use-it-or-lose-it' policy under which an airline that ceases operations also loses its traffic rights, which can then be put up for bid among competitors vying for its routes.

Ms Chong said that Orangestar expects to place out all the rights shares shortly.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

May 4, 2006
Tiger leaps to Changi's top 10 list
Budget airline joins heavy- weights such as British Airways, SIA that carried most passengers to and through Changi last year

By Karamjit Kaur
Aviation Correspondent

LESS than two years after it took to the skies, budget carrier Tiger Airways has made it onto the list of Changi Airport's 10 largest carriers.

The achievement places Tiger alongside heavyweights like British Airways, Cathay Pacific, Emirates and Singapore Airlines, which were also among the 10 airlines that carried the most passengers to and through Changi last year.

At an inaugural event at the Singapore Marriott Hotel last night, Tiger and 25 other airlines were recognised for helping to maintain Changi's status as a leading regional aviation hub. The airport now boasts a network of more than 4,000 weekly flights, operated by 82 airlines to 181 cities in 57 countries.

There were four categories of winners.

Japan Airlines, Korean Air and Northwest Airlines were among the 10 that recorded the highest volume of cargo last year.

Awards were also given out to airlines that saw the highest increase in passenger and cargo traffic to and through Changi Airport last year.

Among the five winners for cargo were Qatar Airways and China Eastern Airlines, while Qatar was also among the top five in the passenger category.

Tiger - a partnership between SIA, government investment company Temasek Holdings, the founders of Irish low-cost airline Ryanair and United States-based marketing and business strategy consultants Indigo Partners - flew more than one million passengers between September 2004 and March this year.

It expects to fly one million more by the end of this year, said Mr Chris Ward, the airline's director of operations.

Mr Ward said Tiger was honoured to receive the recognition, particularly as it is the only low-cost airline on the list.

Mr David Ho, Qatar Airways' manager in Singapore, said the airline carried 270 per cent more cargo to and through Changi in the last financial year, which ended on March 31.

Their passenger numbers also went up 46 per cent.

Transport Minister Yeo Cheow Tong, who gave out the awards, said that the success of an airport is determined not just by its infrastructure or technical expertise.

'Rather, it is the quality of an airport's relationship with its partners that distinguish outstanding airports from mediocre ones,' he said.

After being hit by the Sars virus in 2003, Singapore has introduced several incentives to attract new airlines and encourage those already flying here to expand operations.

The most recent - a $300 million fund that will last until 2008 - was announced in January.

Among other incentives, airlines get at least a 15 per cent discount on landing fees, as well as office and warehouse rental.

To help them cut costs further and boost efficiency, the Civil Aviation Authority of Singapore is also giving airlines free use of space to set up self-service check-in kiosks, Mr Yeo said.

The strong relationship with its airline partners has helped Changi grow year after year.

Last year, it handled a record of 32.4 million passengers and 1.83 million tonnes of cargo.

karam@sph.com.sg
Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 11 May 2006

Tiger Airways to issue fuel purchase tender

Carrier may hedge tools to combat rising oil prices

(SINGAPORE) The country's low-cost carrier Tiger Airways will soon issue its first fuel purchase tender and is considering hedging tools to fend off lofty oil prices as consumption rises, its chief said on yesterday.

Tiger projects its fuel demand to grow between 50 and 100 per cent as it receives three new A320 aircrafts later this year and another three in 2007, taking its total fleet to 12.

The airline, which currently conducts joint fuel purchases with Singapore Airlines in some airports, plans to issue the invitation to suppliers over the next two to three weeks, chief executive officer Tony Davis told Reuters.

'As we get bigger, our (fuel) purchase requirement increases. As we enter more diverse markets, it is the right time to invite parties to work with us in a fuel procurement programme which helps in cost management,' said Mr Davis, who did not give details on the hedging instruments.

Industry group IATA says airlines lost a total of US$6 billion last year, including big losses by US carriers, mainly due to higher costs of jet fuel, which had nearly tripled from the US$31.05 a barrel seen in May 2001. Fuel has become an increasingly large percentage of the total cost base for airlines, above the 30 per cent norm.

Airlines can save money if physical prices for jet fuel rise higher than the level they paid ahead of time on the paper or futures markets, though may lose out if physical prices fall. Hedging instruments, often done through banks, consist mainly of swaps and options.

'High oil prices put pressure on everyone and we are keeping our eyes firmly on oil costs,' Mr Davis said, but declined to comment on the airline's fuel consumption.

Benchmark jet fuel prices in Singapore - Asia's oil trading hub - hit a record of US$90.10 a barrel in late April, before easing to US$85 at yesterday's Asian close.

Tiger is 49 per cent-owned by Singapore Airlines, which suffered its fifth-straight quarter of lower profits due to record fuel costs.

Other shareholders include the founder of Dublin-based Ryanair and Singapore investment company Temasek Holdings.

Rival Malaysia's AirAsia Bhd said earlier this year that it will use 4 million barrels of jet fuel, or 11,000 barrels daily, in 2006, up over a third from last year.

Tiger currently flies to 16 Asia-Pacific destinations.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

I might take Tiger Airways from Singapore to Shenzhen.

Is this a good company? I see it's 49% owned by SIA.

How is the customer service? Are they flexible in terms of flights? Will I get a better price in Singapore or should I book online now?

Thanks.

^Book online....:)

May 17, 2006
Tiger soars in China and ready to add more flights
It's waiting for Chinese authority's nod; also seeking second base in Asia

By Karamjit Kaur
Aviation Correspondent

IT IS just three weeks since Tiger Airways roared into the Chinese market but seats are selling so well it is raring to add more flights.

From July, it hopes to fly to Guangzhou five times a week, instead of three times as of now, and to Haikou every day, up from four times a week - and has already applied for permission to China's civil aviation authority.

The air rights are already available from Singapore, chief executive officer Tony Davis told The Straits Times yesterday.

Tiger also flies to Shenzhen three times a week.

Mr Davis said: 'We always knew China would be a key market but demand has far exceeded our expectations in this case.'

Tiger's popularity stems from the strong cultural and trade links between the two countries and the airline's low fares, he said.

Return fares, excluding taxes and surcharges, start at $124, or about $200 less than what full-service airlines like Singapore Airlines (SIA) and China Southern Airlines charge.

In an interview, Mr Davis said Tiger - which now has six planes and will have nine by Christmas - will fly to 20 destinations by the year-end, up from 16 now.

He also confirmed that the carrier will set up a second base in Asia this year so it can fly to more destinations. This will allow the airline to get around restrictions set by governments that dictate through bilateral air services agreements where carriers can or cannot fly.

Tiger is in talks to launch a joint-venture airline for the second base but Mr Davis would not say with whom.

'We are in serious discussions with two to three different parties,' he said. 'There are issues that need to be sorted out but we will have the second base this year.'

Indonesia's Adam Air and PT Merpati Nusantara Airlines both said in February they were in talks with Tiger.

Tiger, flying since September 2004, is the only budget carrier on the top 10 list of airlines which carried the most passengers to and through Changi Airport last year, according to the Civil Aviation Authority of Singapore.

Analysts like Mr Shukor Yusof, Standard & Poor's aviation editor, point out that Tiger is lucky to have backers with deep pockets and a boss like Mr Davis who seems to have a free hand in running the show.

Since moving to Changi's new Budget Terminal which opened on March 26, Tiger has managed to cut its costs by about half, said Mr Davis, who started at British Airways and celebrated his 20th anniversary in the airline business last Friday.

He had no straight answer when asked if fares have come down as a result and said: 'Moving to the Budget Terminal means we are able to consistently offer our customers low fares.

'Our planes have never been fuller and that speaks volumes about where we are vis-a-vis our competitors.'

Tiger Airways - a partnership between SIA, investment company Temasek Holdings, the founders of Irish low-cost airline Ryanair, and United States-based marketing and business strategy consultants, Indigo Partners - is not yet making money but it is 'cash flow positive', Mr Davis said, proudly adding: 'Some of our competitors are still at the burning cash stage.'

It was an obvious dig at Qantas-backed Orangestar Investment Holdings - owner of Jetstar Asia and Valuair - which last month asked shareholders for $36 million to stay in business, having almost exhausted the $60 million that was pumped in last July.

karam@sph.com.sg
Copyright © 2005 Singapore Press Holdings. All rights reserved.

I want Tiger flights to Zhengzhou ^ ^

I have booked online and my trip to China is finalised. I will fly SIA to Singapore then Tiger Airways to China. If I took the SIA + SIA option, it would of cost me around $700 AUD more!!!! :eek2:

Thanks guys!

Wow....thats a huge savings.....:D

May 24, 2006
Jetstar, Valuair in sync to offer multi-destination routes

JETSTAR Asia and Valuair, the two low-cost airlines that merged last July, have taken another step towards full integration - synchronising flight schedules to offer more destinations and quick transfers.

The move allows the airline to package and offer multi-destination routes via Singapore, including Bangkok-Bangalore, Bangalore-Hong Kong and Bangalore- Taipei. It also widens access to budget routes to Indonesia. For example, with a single ticket and check-in, a passenger can now fly Bangkok-Singapore on Jetstar and transfer to Valuair for the second leg to Jakarta, Surabaya or Bali.

Ms Chong Phit Lian, chief executive officer of Orangestar Investment Holdings, which owns and runs the two airlines, said in a statement: 'We now have a critical mass of routes, which allows us to provide seamless transfers for a passenger from one point in our network to another, while also providing a great value deal on the fare.'

The two airlines will shortly be synchronising more flights, Jetstar's spokesman said.

Coordinating schedules with Valuair is an effective way of getting around restrictions that currently ban Jetstar and other budget airlines from flying to key Indonesian cities, observers said. Valuair has rights to Jakarta, Surabaya and Bali, which means Jetstar can offer routes to Indonesia via Singapore.

The two airlines are now also served by the same ground-handling companies at Changi Airport.

Passenger, baggage and cargo handling as well as loading and unloading of aircraft are being carried out by Singapore Airport Terminal Services, while SIA Engineering Company takes care of technical ramp handling, which involves aircraft towing and parking for arrivals and departures.

Jetstar and Valuair planes are maintained by ST Aerospace.

KARAMJIT KAUR

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Business Times - 01 Jun 2006

Jetstar Asia and Valuair get nod on collaboration

Tiger Airways alarmed at Aussie decision in favour of Qantas stable

By VEN SREENIVASAN

(SINGAPORE) Jetstar Asia and Valuair have obtained approval from the Australian competition watchdog to collaborate on airfares, schedules and network routing with their parent Qantas and sister airline Jetstar.

As widely expected, the Australian Competition and Consumer Commission (ACCC) yesterday granted 'interim authorisation' for the cooperation agreement between the airlines in the Qantas stable.

This means Singapore-based Jetstar Asia and Valuair - which are both held under Qantas's 49 per cent-owned Orangestar - can share resources and interline to service what could possibly be one of the most comprehensive pan-Asian networks yet.

ACCC chairman Graeme Samuel said the authorisation was conditional on the terms of collaboration of the Qantas-Orangestar partnership.

'The ACCC has granted interim authorisation to the arrangements, on condition that Qantas and Orangestar do not reach agreement on allocation of existing capacity or withdrawal of services on overlapping routes and do not reach agreement not to enter routes to and from Australia,' he ruled.

The development is welcome news for Jetstar Asia and Valuair, which have been struggling to stem the red ink at a time of cut-throat competition and a lack of sufficient high-yielding routes in the region. In the last two years, the pair have collectively burnt over $100 million, recently asking shareholders for $36 million more.

The ACCC ruling comes just ahead of the November start of Jetstar's planned international flights to Thailand, Vietnam, Bali, Japan and Hawaii. With the green light from the competition regulators, Jetstar can now link its operations and schedules with those of the Orangestar airlines.

The ruling comes barely six weeks after Qantas made its 34-page submission to the ACCC, in which it argued that its flying businesses - which include its Australian discount carrier Jetstar and the Orangestar carriers - required coordinated management.

While acknowledging that the Orangestar airlines were not subsidiaries (meaning that they could not collude to fix fares or share resources under existing competition laws), it nevertheless pointed out that Jetstar Asia and Valuair were integral parts of the Qantas group operations in Asia and would become more important as Jetstar grew its Australia-based international operations. 'The Australian public will benefit from cooperation between the Qantas and the Orangestar groups as cooperation will enable the parties to reduce operating costs and sustain low fares at the same time as offering combined itineraries and accelerating the opening of new destinations and frequencies,' it said in the submission.

'These outcomes are critical to ensuring Jetstar Asia and Valuair are able to remain competitive on their intra-Asian routes, where they continue to face strong competition from both full-service and other value-based carriers.'

The prospect of a collaboration between Jetstar, Jetstar Asia, Valuair and Qantas alarms competitors like Tiger Airways. The budget carrier, which is 49 per cent owned by Singapore Airlines, expressed disappointment at the ACCC decision but added that it was pleased with the several caveats added by the ACCC.

'Tiger Airways intends to ask the ACCC to give an assessment of the reasons why it has approved the application,' said CEO Tony Davis.

'At the same time, Tiger Airways has also made representations to the Competition Commission of Singapore (CCS) to register its objections to the coordination agreement, as the approval of the CCS is necessary for the agreement to be implemented.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 07 Jun 2006

Getting the basics right pays off for Tiger

Focus on low costs, wider network,and higher traffic and utilisation

By VEN SREENIVASAN

(SINGAPORE) A determined focus on keeping costs down to the bare bones, growing the network quickly and filling as many seats as possible has kept Tiger Airways flying high, even as its competitors struggle to stay the course.

The budget carrier, which took to the skies in September 2004, has not turned in a profit yet.

But CEO Tony Davis emphasises that it is cashflow-positive, has not had to make additional cash calls, and enjoys strong lines of credit with its bankers.

'We don't expect to ask shareholders for cash unless we need money to fund new expansion plans,' Mr Davis said, in an obvious reference to rival carriers Jetstar Asia and Valuair, which recently asked shareholders for an additional $36 million.

Tiger's shareholders - Singapore Airlines (49 per cent), Indigo Partners (24 per cent), Irelandia Investments (16 per cent), and Temasek Holdings (11 per cent) - initially invested $12 million to start up in 2004. They injected additional funds, said to be less than the original $12 million, several months later.

But Tiger has had a smoother ride than rivals Jetstar Asia and Valuair, which have burnt well over $100 million in almost two years and recently asked shareholders - namely Qantas and Temasek Holdings - for more funds. The two Orangestar carriers are now headed towards collaboration with Qantas and Sydney-based Jetstar - something which Mr Davis argues would pose unfair competition for go-it-alone players like Tiger.

So is Tiger doing well where others seem to be struggling?

Mr Davis credits this to Tiger's determination to quickly grow its routes at a frenetic pace over the past two years. 'We have launched more routes in a year than AirAsia did in five years,' he said. 'Today, we have permission to fly to almost every country in South-east Asia.'

Except two of the region's biggest markets, Indonesia and Malaysia, he might add. But Tiger could soon be in Indonesia. 'We are now in negotiations with potential partners to set up a second base in the country,' he revealed, without naming the parties.

If so, Tiger would be following the example set by Malaysia's AirAsia, which has 49 per cent-owned units in Thailand and Indonesia. Asia's largest budget carrier has shown that in an industry which is as notoriously protective and deeply wrapped in national pride, cross-border stakeholding alliances are the only way to get into closed markets.

Meanwhile, Tiger is pumping up traffic on the routes to its current destinations. 'We needed to grow our route network quickly, and we have been doing that,' said Mr Davis, who was the first managing director of Bmibaby, the low-cost offshoot of Britain's British Midland Airlines. 'Getting the routes is always the toughest part. Now we have the easy job of increasing the frequencies and the traffic.'

Indeed, it should prove relatively easy, given that in this region of some 550 million people, only about 15 per cent have been in an airplane. While Tiger Airways does not reveal detailed operating figures, the airline is believed to be enjoying system-wide passenger load of over 75 per cent.

Nevertheless, more routes will be unveiled in the next few weeks, according to Mr Davis.

So when will Tiger make a profit? 'Today! If fuel price was US$45 per barrel,' Mr Davis quipped, before adding that even with fuel hovering at well over US$75, Tiger is well positioned with its razor-sharp focus on keeping costs down and boosting traffic.

'Our strategy is to increase the utilisation rate of planes to 14 hours a day,' Mr Davis said. 'We are already the second-lowest-cost airline in the world, after AirAsia. So all we have to do is sell more seats.'

The airline moved to the Budget Terminal two months ago, does not allocate numbered seats, charges for food onboard, allows only 15kg baggage allowance and charges $20 for bulky items like golf bags, bicycles and surfboards.

Besides astute cost management, Tiger has avoided competing directly with heavyweights like Cathay Pacific and Singapore Airlines. For example, its routes like Singapore Macau, Singapore-Clarke Air Base, Clarke-Macau and Singapore-Darwin enjoy strong loads.

Tiger is preparing to take delivery of three more A320 jets this year, bringing its fleet size to nine planes. Three more A320s arrive next year, doubling its fleet to 12 planes by end-2007. The planes will be financed entirely with pre-arranged credit.

'We have 100 per cent of our pre-delivery lease financing on commercial terms with our bankers,' said Mr Davis. 'We have some US$60 million in pre-delivery financing lined up with The Royal Bank of Scotland, Standard Chartered and Norddeutsche Landesbank.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 09 Jun 2006

Jetstar Asia voted best low-cost airline

By VEN SREENIVASAN

(SINGAPORE) Jetstar Asia has been voted the Best Low-cost Airline 2006 for both the Asia and South-east Asia categories in the Skytrax Airline of the Year survey.

A delighted Chong Phit Lian, CEO of Jetstar Asia, said she was happy and encouraged by the award. 'Recognition by our passengers and customers worldwide is important to us as it shows that we are doing the right things,' she said. 'We always try to understand the needs of our customers so that we can fulfil their needs better.'

The survey is a worldwide independent passenger study conducted at airports by Skytrax. The study polled over 13 million passengers, comprising more than 93 different nationalities. What lends the survey credibility, is that it is not tied to any sponsorship or external influence.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

^ I am quite please with Jetstar's service.

btw, it's quite pathetic to see only one budget aircraft using the budget airline.

Jetstar to expand network in India

Bangalore, June 9. (PTI): Singapore-based low-cost airline Jetstar Asia today said it was in the process of planning an expansion of its network in India.

"We are in the process of working out the network expansion," Jetstar Asia CEO Chong Phit Liang told reporters here.

The airline currently operates five flights a week from Bangalore.

She also announced the "Special Launch Fares" for four flights operating via Singapore -- Bangalore-Singapore-Bangkok (Rs 6,000), Bangalore-Singapore-Hong Kong (Rs 7,500), Bangalore-Singapore-Jakarta (Rs 6,000) and Bangalore-Singapore-Taipei (Rs 9,000).

The fares were special one sector offers from June one to 15 for travel between June one and July 31, 2006, she said.

"We now have a critical mass of routes, which allows us to provide seamless transfers for a passenger from one point in our network to another, while also providing a great value deal on the fare," Chong said.

Asked if the airline planned to increase the number of flights to Bangalore, she said, "No. Not at the moment."

Chong announced Jetstar Asia had been named the winner of the Skytrax Airline of the year and Best Low-cost Airlines Award for 2006 for both the Asia and Southeast Asia categories.

The Airline of the Year survey was an independent study by Skytrax based on a worldwide survey that involved interviews totalling 13.6 million people of over 93 nationalities, she said.

http://www.hindu.com/thehindu/holnus/006200606091510.htm

Amazing!

Good for JetStar!

^^ This is great, about time there are low cost flights expand in India!!!! Woohoo!!

I think the potential for Indian travel is enormous...I'm already noticing a lot of Indian national tourists here compared to a couple of years ago...

Business Times - 13 Jun 2006

Tiger Airways to add more flights to China, Thailand

SINGAPORE - Singaporean low-cost carrier Tiger Airways has announced on Tuesday that it will increase the number of flights to China and Thailand starting next month.

Tiger will add three flights per week between Singapore and Haikou on China's Hainan island, raising the frequency to seven. It will also add two flights per week between Singapore and Guangzhou, bringing that total to five.

Tiger will also add another two flights per week to the Thai resort island of Phuket, bringing the total to nine flights a week.

The planned increase in the number of flights is for the airline's summer schedule from July 1 to Oct 28. Tiger, which is 49 per cent-owned by Singapore Airlines Ltd, currently serves 16 cities in seven countries. -- AP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

14 June 2006

Tiger Airways calls for freer skies between Singapore and Malaysia
By Loh Kim Chin, Channel NewsAsia

SINGAPORE : Tiger Airways is not targeting to fly to the Chinese cities of Shanghai and Beijing for now.

Instead, its focus in China will remain on the southernmost cities where the flying time is within four to five hours from Singapore, to ensure a quick turnaround of its aircraft.

However, Malaysia is very much a destination on the budget carrier's sight.

And its CEO, Tony Davies, has called for a more open sky between Singapore and Malaysia and more access to the Malaysian market.

He was speaking on MediaCorp's Malay current affairs programme, Detik.

Tiger Airways is stepping up its services to the vast China market, barely two months after it started flights to the country in response to strong demand from Singaporeans and the Chinese.

But it also wants landing rights in another market closer to home - Malaysia.

The carrier's CEO is calling for a more liberalised market between Malaysia and Singapore.

He says by restricting access to other low cost carriers like Tiger Airways, Malaysian authorities are actually hurting the country's tourism, trade and aviation business.

"I think it's a great disappointment for many Singaporeans and many Malaysians who would love to fly more cost effectively between the two countries. I get letters all the time from people asking when we are going to start flying to KL and Penang," said Tony Davies, CEO of Tiger Airways.

Mr Davies believes the nationality of an airline should be irrelevant to consumers.

"In so many other industries, if you look at banking, or retail or manufacturing, the nationality of the owner is irrelevant. The question is if they produce a good product at the right price that you want to buy. And we have to start thinking of aviation in the same terms," said Davies.

He believes the catalyst for more liberalisation and change will come from hoteliers, tourism infrastructure and tourist attractions.

And Tiger Airways could probably offer air fares that are cheaper than the bus services between Singapore and Malaysia.

The Civil Aviation Authority of Singapore is also negotiating with China for more air rights.

And Tiger Airways will soon have company at the Budget Terminal when Shanghai Airlines launches its cargo services between Singapore and Shanghai this month.

CAAS says it will continue to push for more air rights for Singapore carriers to fly to China and for their carriers to come here. - CNA /ls

Copyright © 2006 MCN International Pte Ltd

This story was printed from TODAYonline

Star effort gets Jetstar reward

Airline staff get S'pore Sweep tickets as token of appreciation

Friday • June 16, 2006

Tor Ching Li
chingli@newstoday.com.sg

MERGED budget airlines Jetstar Asia and Valuair may have to wait until 2009 to turn a profit, but each of their 300 staff members will have the opportunity to become millionaires by next month.

This is not due to an extremely big bonus from their holding company, Orangestar, but because chief executive Chong Phit Lian, 53, will be giving each staff member a Singapore Sweep ticket today as a fun token of appreciation for their hard work and achievements.

Jetstar Asia recently won the Best Low Cost Airline Award (Asia and Southeast Asia) in the Skytrax World Airline Awards, based on a worldwide independent passenger study of 13 million passengers in more than 93 countries.

"It's a timely recognition of my colleagues' effort and a reflection of customer recognition, which I think is very important," said Ms Chong, who, next Friday, will have helmed the budget aviation firm for 100 days.

Part of the evaluation criteria for the award was the convenience and comfort of the check-in process.

Operating at Terminal 1 alongside full-fare airlines, Jetstar Asia and Valuair have an edge over their rival, the Singapore Airlines-owned Tiger Airways, in terms of passenger comfort factor because Tiger Airways operates out of the Budget Terminal.

Customer satisfaction comes at the cost of some $3 million more a year to use Terminal 1's facilities, but Ms Chong said the benefits outweigh the costs for the low-cost airline. "You don't have to worry if it rains, so it translates into better customer service. We do what our customer wants," said Ms Chong.

The former Singapore Mint chief executive is the merged airline's fourth chief executive in two years, albeit the first woman, industry outsider and Singaporean in the role.

Barely 10 days into her job, Ms Chong found the existence of the airline hanging in the balance as Orangestar had exhausted the $60 million that shareholders — such as Qantas and Temasek Holdings — had pumped into the merged entity last July.

Ms Chong had to chair an extraordinary general meeting with shareholders to raise $36 million in fresh funding, which she has managed to secure.

"We will be expanding our routes. Things are progressing as planned," said Ms Chong.

Passenger loads on its 12 routes have increased to an average of "below 70 per cent" due to a reduction in the size of their fleet from eight planes to six.

Coming from an industry that was all about churning out money to one that burns cash at a rate of up to $5 million a month, Ms Chong said: "There has been a lot of concern that I have no airline experience, but it's about organising resources, aligning people and streamlining processes."

Just last month, efforts were made to reach out to regional travellers who travel from point to point via Singapore.

Route arrivals and departures have been synchronised so that passengers can transit through Singapore from one Jetstar Asia and Valuair destination to another, such as from Bangkok to Jakarta.

Jetstar Asia has also been given "interim authorisation" by the Australian competition watchdog to fix fares and coordinate schedules with parent company Qantas Airways. This will allow Jetstar — the sister airline of Jetstar Asia — to link its operations with Orangestar.

When Jetstar International takes off in November with flights from Australia to Thailand, Vietnam, Bali, Japan and Hawaii, Ms Chong said there are plans for Jetstar Asia passengers to transit seamlessly between Jetstar Asia and Jetstar International flights on one single ticket and do away with the hassle of baggage transfer.

Copyright MediaCorp Press Ltd. All rights reserved.

Jetstar, Valuair drop plan to switch to Budget Terminal

19 Jun 06

Customers prefer Terminal 1 for its conveniences in survey

LOW-COST carriers Jetstar Asia and Valuair have given up plans to move to Changi's Budget Terminal, swayed by passengers who voted overwhelmingly in favour of Terminal 1, with its good shopping, nice carpets and aerobridges.
As late as last week, the airlines, which merged last July and are owned and operated by Orangestar Holdings, were prepared to switch terminals to cut costs as they grapple with sky-high fuel prices that threaten their survival.

But all that changed after the survey of 3,000 passengers, Orangestar chief executive officer Chong Phit Lian told The Straits Times.

'An overwhelming majority said 'No' to moving to the Budget Terminal. Assigned seating was also very high on their priority list. The customer must come first so it's Terminal 1 for us.'

Rival Tiger Airways is the only carrier now operating out of the Budget Terminal, which promises up to 50 per cent lower operating costs for airlines, and lower departure taxes for passengers.

But the Budget Terminal does not have an integrated baggage system so passengers catching connecting flights have to check out their bags, lug them on board a shuttle bus to the main terminals and check them in again.

Jetstar and Valuair, which have retained their separate brand names for now as Indonesia has not agreed to transfer the air rights it gave Valuair to Orangestar, took to the skies two years ago.

The company also had to cut its fleet by two planes, to six, because of protectionist policies in some countries which have limited the number of routes it can fly, said Ms Chong who gave an update on the company's plans.

In April, Orangestar went back to shareholders, including Australia's Qantas and Temasek Holdings, to ask for $36 million to sustain the business. The money is in, said Ms Chong, without confirming the actual amount raised.

The target is to break even in 2009. Added Ms Chong: 'We need to fill our planes and maximise capacity on the routes we now serve so we are working with several partners to extend our reach and distribution network.'

Jetstar and Valuair now fly to 12 destinations in eight countries.

Flights are under 70 per cent full, on average, with each plane in the air for about 11 to 12 hours a day. Utilisation should increase when new routes - Orangestar would not say which - are added, hopefully later this year.

The company is also hoping to tie up with more airlines to expand its operations, said Ms Chong.

One way would be through code-sharing, where flights are jointly operated and marketed by one or more partner airlines so that instead of two planes taking off half-full, passengers can be combined to have one full flight.

Jetstar has a code-sharing deal with Myanmar Airways International for flights between Singapore and Yangon.

It will also offer more inter-line facilities that allow passengers to fly on more than one airline to reach their destinations.

It might even acquire a stake in a foreign carrier. Said Ms Chong: 'We're not ruling it out but it's not an immediate priority for us.'

Jetstar was voted the best low-cost Asian carrier in a recent survey of more than 13 million passengers worldwide by London-based market researcher Skytrax.

'We are happy and encouraged by this,' Ms Chong said. 'We are learning by the day to evolve and improve and this award definitely gives the encouragement and boost to my team.'

karam@sph.com.sg

^ Bad news for Budget Terminal and good news for passengers?

possibly...in the end its the passengers' choice on which budget airline/terminal they prefer :yes:

Actually that would mean higher operating cost for Jetstar....:yes:

This story was printed from TODAYonline

Tiger Airways to sell, lease back two aircraft

Monday • July 3, 2006

Tiger Airways, which counts Singapore Airlines as its biggest shareholder, said that it would sell two Airbus A320 planes to GATX Air and lease them back.

It will sell the two aircraft to GATX Air, a unit of United States-based GATX Corp, which leases airplanes and railroad cars, and lease them back for 12 years after delivery.

Tiger Airways will receive one of the planes in October this year and the other in November 2007, the company said. It did not disclose the terms of the agreement.

The deal "will provide long-term financing for our two new A320 aircraft", Mr Tony Davis, chief executive officer of Tiger Airways,said. "This agreement further reinforces our relationship with GATX as it is already providing financing for one of our original A320 aircraft."

Tiger has been seeking to trim costs to counter rising oil prices and as competition forces it to cut fares. The carrier competes with Malaysia's AirAsia and Singapore's Jetstar Asia and Valuair, which agreed to combine in July last year.

Meanwhile, the airline is in negotiations with Airbus to convert options for a further eight aircraft into orders. That will boost the size of its fleet to 20 planes, the airline said. — Bloomberg

Copyright MediaCorp Press Ltd. All rights reserved.

14 July 2006

Singapore budget airline increases flights to Thailand

SINGAPORE : Singapore budget carrier Tiger Airways will increase flights to popular Thai destinations Bangkok, Hatyai and Krabi due to strong demand, the airline said Friday.

Tiger Airways said it will add three additional flights to Bangkok from August 19, and two more flights each to Hatyai and to Krabi from August 14.

The extra flights will fly more than 100,000 passengers and increase the number of its flights between the two countries to 41 per week.

Tiger Airways currently operates 34 flights per week between Singapore and Thailand.

Tiger Airways chief executive Tony Davis said Thailand's opening up of the aviation sector "has made this possible and it has resulted in a big boost to business and tourism" between the two countries.

The carrier also flies from Singapore to destinations in Vietnam, China, the Philippines, Australia and Indonesia. - AFP/ch

Copyright © 2006 MCN International Pte Ltd

Business Times - 20 Jul 2006

Tiger Airways seeks to spread wings wider in Asia

SINGAPORE - Singapore's two-year-old budget carrier Tiger Airways said on Thursday it is looking at potential partnerships with other airlines in a bid to spread its wings even wider in Asia.

'Tiger Airways will stop being a Singaporean low-cost airline and start being an Asian low-cost airline,' Tony Davis, the carrier's president and chief executive officer, told reporters. 'We're in a very competitive market and we're determined to win.'

In the booming budget airline sector, Tiger faces competition from Singapore-based Jetstar Asia and Valuair, as well as Malaysian-based AirAsia and others.

'Singapore is our headquarters. It is our home ... but as we grow, we're going to be seeing more Tiger airplanes around the region, not just based here in Singapore, but in other countries in Asean,' he said in reference to the 10 members of the Association of Southeast Asian Nations.

Mr Davis sees Tiger evolving into a 'Pan-Asian, multi-national company' as a result of its expansion plans. The low fare carrier will set up a second base in Asia before the year is up and is in talks with potential partners, including some airlines, for a joint venture in Asia, he said. He did not provide details but said: 'We're pursuing a number and we'll be happy for two this year.' He added that negotiations are well advanced.

By year's end the airline is also expecting to add five routes, including Brunei and Phnom Penh, to the 15 Asian destinations currently served. It also plans to double its fleet to 12 aircraft by next year and is in talks with European aircraft maker Airbus for eight more planes by 2009. The carrier aims to fly more than two million passengers by the end of the year, Mr Davis said.

Tiger Airways says it registered an 81 per cent year-on-year growth in passengers for the month of June, three months after it became the first tenant to move into Changi Airport's Budget Terminal. The carrier has the backing of Singapore Airlines, which owns 49 per cent. State-linked Singapore investment company Temasek Holdings is also a key shareholder with 11 per cent. -- AFP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

This story was printed from TODAYonline

Tiger Airways wants 'cubs'

One or two bases outside of Singapore as part of airline's groundwork for future listing

Friday • July 21, 2006

Tor Ching Li
chingli@newstoday.com.sg

TIGER Airways, the budget airline co-owned by Singapore Airlines (SIA), plans to evolve into a pan-Asian budget carrier by setting up "one or two" bases outside of Singapore by the year's end.

"Singapore will be our headquarters but as we grow you will see more Tiger airplanes based in other countries in Asean," said Tiger Airways chief executive Tony Davis at a press conference yesterday. "We intend to be a major low cost carrier not just in Singapore but in the region."

The establishment of these "bases" — or "Tiger cubs" as Mr Davis calls them — is part of Tiger Airways' groundwork for a future public listing.

Said Mr Davis: "(The public listing) will be a shareholders' decision. As the management, we have to set the groundwork now so that when the timing is right we can carry it out smoothly."

Tiger Airways' competitor, AirAsia, listed in Malaysia early last year and now has bases in Thailand and Indonesia.

Apart from SIA, the other shareholders of Tiger Airways are Temasek Holdings, the founder of Irish low-cost airline Ryanair and United States-based business strategy consultants Indigo Partners. A public listing for Tiger Airways could see more shareholders jump on board, said Mr Davis.

He added that Tiger Airways has already identified "some good partners to work with" — such as existing airlines and new ventures — and is examining different models to carry this out, such as an "equity partnership" or "marketing franchise".

Standard & Poor's Equity Research analyst Shukor Yusof said that Tiger Airways would probably be looking at setting up a base in Indonesia, where it currently only flies to Padang.

"To be a reasonable player in the region you've got to have more of a presence in Indonesia," said Mr Shukor. Other possible locations are the Philippines or Vietnam.

Tiger Airways now flies to 15 cities across seven countries, including Manila in the Philippines and Ho Chi Minh City and Hanoi in Vietnam. It plans to add five more destinations by the year's end, with cities in India, Indonesia, China, Cambodia and Brunei being possible destinations.

The carrier will convert its options for another eight A320 aircraft into firm orders within the next "two to three months", growing its fleet to 20 aircraft upon delivery within the next three years.

Tiger Airways' move to the Budget Terminal in March has also paid off. Not only have costs been shaved by $1 million a year, passenger volume has grown by 81 per cent year-on-year between April and June. Load factors have also grown by an average of 21 per cent over the same period, said Mr Davis.

Some 400,000 passengers have passed through the Budget Terminal to date.
Copyright MediaCorp Press Ltd. All rights reserved.

i hope that they expand their operations in the philippines..

Business Times - 21 Jul 2006

Tiger may set up base in Indonesia

It's seen to be in talks with domestic carriers there for some form of tie-up

By VEN SREENIVASAN

IN A move which would enable it to sidestep the ban on foreign low-cost carriers operating into Indonesia, Singapore-based Tiger Airways is 'close' to setting up a base in that country through a joint venture deal.

While Tiger chief executive Tony Davis refused to divulge any details yesterday, he did confirm that he was in talks with 'a few people including some airlines' and that 'one, maybe two' associates or joint ventures could be set up by year-end.

'We have identified some good partners and places,' he said at a press conference on the airline's progress, adding that the venture could either be via equity participation or a marketing franchise riding on the Tiger brand name.

Most industry insiders speculate that Tiger is in talks with one of the numerous domestic airlines in Indonesia.

Among them is Pelita Air Service, which is said to be controlled by Indonesian national oil company Pertamina. Pelita served an extensive domestic route network with a fleet of 35 turbo-props planes until the recent fuel price hikes forced it to focus on charter flights.

Other possible airline partners in Indonesia include Air Paradise (which has said it is seeking investors) and Kartika Airlines.

An equity tie-up with a domestic carrier could effectively give Tiger a 'backdoor' entry into the huge Indonesian aviation market which has been out of bounds since Indonesia abruptly shut the door on foreign low-cost carriers last year.

Malaysia's AirAsia has shown how such cross-border tie-ups can help regional budget carriers spread their wings beyond their home bases. In both Thailand and Indonesia, AirAsia holds 49 per cent stakes in Thai AirAsia and Indonesian AirAsia respectively, while local entities control the majority interest.

Mr Davis said that such cross-border deals would enable Tiger to become a truly pan-Asian player, with a route footprint stretching all the way from India, through South-east Asia and into China.

He also said that his airline would soon exercise options on eight more Airbus 320-series planes. Six such planes are in service and six more are due for delivery. He added that the purchase could include the A319 model, which would enable Tiger to fly into smaller airports.

Meanwhile, the airline plans to increase services to 20 destinations by year-end, from 15 now. These include Bandar Seri Begawan and Phnom Penh. It is also eyeing more routes in China and southern India.

Mr Davis said that Tiger's passenger volume rose 80 per cent in the April-June quarter after the carrier moved to the Budget Terminal, while its load factor rose 21 per cent. It has also added 50 per cent more capacity.

He added that the airline was preparing the ground for a possible public offering in a few years' time.

'At present, we are extremely well-funded and are generating positive cashflow,' he said, 'but we are also setting the groundwork, should our shareholders decide the time is right for a significant cash call to drive our future growth.'

Tiger, whose shareholders are Singapore Airlines, Indigo Partners, Temasek Holdings and Irelandia, the investment firm of Ryanair founder Tony Ryan, is regarded as one of the more successful low-cost carriers in a region which already has almost 20 budget airlines.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 17 Aug 2006

Jetstar Int'l seeks to fly on Australia-Singapore sector

It also wants to be allowed to make a two-stage route to London, via S'pore

By VEN SREENIVASAN

(SINGAPORE) Qantas' discount carrier Jetstar International has applied to operate flights between Australia and Singapore in a move that, if successful, might drive fares down for the sector.

If it succeeds in its application with the International Air Services Commission, it would also mean that Jetstar International would interline with its two Singapore-based units - Jetstar Asia and Valuair - to offer seamless regional connectivity to a dozen other destinations, from Bangalore to Taipei.

Passengers could then fly from selected Australian cities to Singapore and onwards to other destinations such as Phuket for a fraction of the present cost of a ticket on a full service carrier like Singapore Airlines or Qantas itself.

According to Australian media reports, Jetstar International has also asked to be allowed to structure a two-stage route to London, via Singapore. Such a route can only be serviced when the Qantas group takes delivery of its Boeing 787 planes in about two years.

Jetstar has also asked for permission to code-share with parent, Qantas, on its long-haul flights freely for 'maximum flexibility'. The budget carrier is planning to start services to Singapore as early as this year's northern winter season.

All this comes about just over a month after Qantas was permitted by the Australian Competition and Consumer Commission to put the units under a single Jetstar umbrella to create a pan-Asian entity. Jetstar Asia and Valuair are 49 per cent controlled by Qantas.

Meanwhile, Qantas has also asked for a variation on its British route, to take into account the recent breakthrough in negotiations between the Australian and British governments that removed restrictions on capacity and frequency.

It wants the existing agreement revoked and replaced by a single 10-year permit, with no limits on capacity and cargo services, including for 'wholly owned subsidiaries'.

The application to start Australia-Singapore services comes just after Jetstar International obtained the US Department of Transportation's approval to fly five weekly services to Honolulu before Christmas this year. Jetstar International was given the nod despite strong opposition from United Airlines, which argued the application route should be used to negotiate an open-skies agreement with Australia.

'The government should make use of the opportunity to achieve an 'equitable balance' and end all anti-competitive restrictions for all carriers on all routes,' United said in a statement.

'The US should offer Australia and its carriers the opportunity to operate services without any restriction on capacity or routings, by entering into an open-skies agreement,' the airline said

United's plea to the US Department of Transport should be music to the ears of Singapore Airlines and Emirates, which have argued forcefully for Australia to open up its Sydney-United States West Coast trans-Pacific routes to more players.

But in the face of strong lobby from Qantas, the Australian Cabinet has been reluctant to open up the 13-hour trans-Pacific hop to new players. The route is currently a duopoly controlled by United Airlines and Qantas, with Qantas dominating in terms of capacity and traffic.

Analysts estimate that Qantas gets about 15 per cent to 20 per cent of its profit from the trans-Pacific route.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 23 Aug 2006

Tiger revises SIAEC maintenance contract

By VEN SREENIVASAN

(SINGAPORE) Low cost carrier Tiger Airways has revised its line maintenance contract with mainboard-listed SIA Engineering Company Limited (SIAEC) to improve cost efficiency for its growing aircraft fleet.

Under the revised line maintenance contract, SIAEC will provide Tiger a standard package of line maintenance services at a fixed price for three years. Under the previous $110 million contract signed in 2004, SIAEC provided a menu of maintenance, repair and overhaul (MRO) services on a case-by-case basis, subject to reviews every six months.

The contract also includes fleet and inventory technical management.

Tiger, which is 49 per cent controlled by SIAEC's parent Singapore Airlines, believes that the revised contract provides more cost efficiency and certainty.

'After two years of operations and with our fleet expected to double to 12 aircraft by next year, it is timely to review our existing maintenance contract,' said Tiger Airways chief executive, Tony Davis. 'SIAEC's agreement to fix the cost structure of the line maintenance contract to three years is a strong vote of confidence in Tiger Airways' viability. We hope to conclude more such mutually beneficial long term contracts with our other suppliers and pass on the cost savings to our passengers by providing consistent low fares.'

The move will also add more certainty in terms of cost management for the budget carrier at a time when fuel prices are still stubbornly stuck at record levels. Currently, fuel is believed to account for about a third of its total expenditure.

Tiger, which prides itself as the only truly low cost operator here, moved to the Budget Terminal earlier this year, where it switched its ground handling services from Singapore Airport Terminal Services to Swissport International AG after the latter offered its services at a lower price.

SIAEC chief executive officer William Tan said the revised contract would better complement the airframe maintenance services and fleet management programme that SIAEC was extending to Tiger Airways.

'We are very pleased that Tiger Airways has again affirmed its confidence in us,' he said. 'Aligning our operations to the value chain of each airline customer is a key focus of SIAEC.'

Tiger Airways flies to over a dozen destinations in seven countries. It recently passed its 1.5 million passenger carriage mark and expects to reach the two million mark before the end of this year.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

this was taken from from www.inq7.net.. could this mean that the philippines could be the second hub that tiger airways is hinting?

Tiger Airways secures 5-yr operating permit from CAB

By Lynette Khoo
Xinhua Financial News Service
Last updated 11:35am (Mla time) 09/06/2006

SINGAPORE -- Singapore Airlines Ltd's budget carrier unit, Tiger Airways, said it has been granted a five-year permit by the Philippines' Civil Aeronautics Board to operate international air services.

Tiger Airways offers low-fare travel in the Philippines and has increased flight services from three flights per week a year ago to three flights a day from Clark International Airport, two bound for Singapore and one for Macau.

"Tiger Airways will continue to expand its operations at Clark," Tiger Airways chief executive Tony Davis said in a statement.

Business Times - 11 Sep 2006

Tiger Airways to fly to M'sian cities on Borneo Island

KUALA LUMPUR - Malaysian authorities have granted permission to Singapore's low-cost carrier Tiger Airways to fly from the republic to three destinations in Malaysia's Sarawak state on Borneo Island, a news report said on Monday.

The airline will be allowed to fly to the cities of Kuching, Miri and Sibu in Sarawak to boost tourist arrivals in the state, The Star newspaper quoted Sarawak State Tourism and Urban Development Minister Wong Soon Koh as saying.

Mr Wong was quoted as saying that officials hoped that lower airfares offered by Tiger Airways would attract Singaporeans and other foreign visitors to fly to the state. The Star did not give any other details, and Mr Wong could not be reached at his office. Officials from the Transport Ministry were not immediately available for further details.

At present, most routes to Sarawak are served by national carrier Malaysia Airlines and no-frills airline AirAsia. Singapore's Silk Air also flies to Sarawak, but only to the state capital, Kuching. -- AP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 11 Sep 2006

Tiger Airways to fly to M'sian cities on Borneo Island

KUALA LUMPUR - Malaysian authorities have granted permission to Singapore's low-cost carrier Tiger Airways to fly from the republic to three destinations in Malaysia's Sarawak state on Borneo Island, a news report said on Monday.

The airline will be allowed to fly to the cities of Kuching, Miri and Sibu in Sarawak to boost tourist arrivals in the state, The Star newspaper quoted Sarawak State Tourism and Urban Development Minister Wong Soon Koh as saying.

Mr Wong was quoted as saying that officials hoped that lower airfares offered by Tiger Airways would attract Singaporeans and other foreign visitors to fly to the state. The Star did not give any other details, and Mr Wong could not be reached at his office. Officials from the Transport Ministry were not immediately available for further details.

At present, most routes to Sarawak are served by national carrier Malaysia Airlines and no-frills airline AirAsia. Singapore's Silk Air also flies to Sarawak, but only to the state capital, Kuching. -- AP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

WAH!!!

Business Times - 10 Oct 2006

Tiger Q2 passenger traffic up 70.6%

By VEN SREENIVASAN

(SINGAPORE) Tiger Airways' second-quarter passenger traffic rose 70.6 per cent, lifting passenger load factor by 7.1 percentage points.

This raised traffic growth for the April-September first half by 75.5 per cent year-on-year, resulting in a 9.7 percentage points rise in load factor.

The airline increased capacity during the July-September quarter by 54.2 per cent. Capacity growth during the entire first half was up 52.6 per cent as the budget carrier increased frequencies after moving to the Budget Terminal, where it now operates almost 200 flights per week to over a dozen regional destinations.

Tiger has never revealed its actual passenger load factor numbers, but analysts believe it to be in the 65-70 per cent range systemwide.

The airline recently signed a marketing agreement with Philippines-based SEAir, which essentially marks the establishment of its first overseas base. Tiger expects to set up several more bases in regional countries, either via strategic tie-ups or equity stakes, over the next few years.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved

Yay stan is back!

So anyone know if Tiger is going to rebrand SEAir to Tiger (just like AirAsia rebranded AWAIR to AirAsia Indonesia)?

Emm....I don't think I'm ever "away"....:lol:

Oct 13, 2006
Tiger beefs up fleet as it spreads wings
New A320 joins fleet, two more expected soon; new routes likely

TIGER Airways took delivery of its seventh Airbus A320 on Wednesday, the first of three new aircraft the budget carrier will receive by the end of the year to fuel its rapid expansion.

The purchases top off a good year for the airline. Tiger, which has been operating since 2003, carried the most number of passengers of any low-cost airline here during the April to September financial half-year, recording a 75 per cent increase in passenger numbers.

The carrier also expects to receive its two-millionth passenger by the end of the year.

Tiger chief executive officer Tony Davis said: 'With our new aircraft deliveries, we will have the capacity to operate many more routes.

'We have also been invited to apply for several new routes, which we are confident we will be able to operate effectively on a long-term basis.'

The budget airline rolled out new services between Singapore and southern China earlier this year and increased the frequency of services between Singapore and Thailand.

It also recently announced a wider plan to become a pan-Asian carrier, with a network of four or five regional bases within two to three years.

Its first base outside Singapore - Manila's Clark Airport - was secured last month, along with a tie-up with Philippine domestic carrier Seair.

Two planes now serve four routes out of the Philippines: Clark- Cebu, Clark-Davao, Clark-Singapore and Clark-Macau.

Mr Davis expects to announce new regional bases and even more new routes soon.

Currently, Tiger flies to 15 destinations in six countries from Singapore: Thailand, China, Indonesia, the Philippines, Australia and Vietnam.

Mr Davis said: 'Tiger Airways has a winning formula because we adhere strictly to the low-cost carrier model, which has a proven track record in the United States and Europe.'

Copyright © 2006 Singapore Press Holdings. All rights reserved.

So anyone know if Tiger is going to rebrand SEAir to Tiger (just like AirAsia rebranded AWAIR to AirAsia Indonesia)?

Totally different cases.
AirAsia bought into the then defunct AWair to gain a toehold into the vast Indo market which the authorities protect by banning foreign LCCs.
TigerAir will merely lease out 2 planes and go into a marketing agreement with SEair only on the routes to be flown by those jets. SEair's current fleet and routes are not covered by the present agreement.
Maybe in future or maybe not at all.

31 October 2006
Budget Terminal passenger volume to hit million mark by end 2006

SINGAPORE : Singapore's budget terminal is expected to hit the million mark by the end of the year.

The volume of low-cost carrier flights in Singapore have climbed to 11.3 percent of total flights, and plans are already in place to expand the terminal to meet the growing demand.

In the first month of business, Singapore's Budget Terminal saw about 72,800 travellers checking in to fly two low-cost carriers operating from there - Singapore-based Tiger Airways and Philippine's Cebu Pacific.

And the budget travel sector is expected to soar in the years ahead.

"At the rate we are going, we have about a 100,000 passengers now a month, so we will cross a million easily in the next couple of months. Our capacity is about 2.7 million, so there's still space to grow," says Transport Minister Raymond Lim.

The budget terminal is linked to 16 cities with about 244 weekly scheduled flights. That is a 97 percent increase in the number of flights since the terminal was operational. And about 657,000 passengers have gone through the departure gate.

The volume of air commuters could climb even further, now that Singapore and Kuala Lumpur are moving forward with more sky links, as well as the recent proposal of an open skies agreement between ASEAN and China.

"We've always been ready and we have a liberal air policy. I think they (Malaysians) know our views on this matter but we need to see their proposal, so we know how best to take it forward," says the Transport Minister.

""I think that it is a good proposal, that we should work towards open skies between ASEAN and China because this will facilitate trade, investment and tourism flow. So it's a move in the right direction," he adds.

When the time comes, the budget terminal will be up to the challenge of handling the traffic.

Built with an expandable capacity, it can handle a maximum of five million passengers a year. - CNA /ls

Copyright © 2006 MCN International Pte Ltd

31 October 2006
Budget Terminal may be expanded

Singapore's new Budget Terminal could be expanded soon - if the traffic flow of passengers continues to rise.

Transport Minister Raymond Lim gave the indication at the Official Opening Ceremony of the Budget Terminal this afternoon.

He pointed out that although only two airlines currently use the terminal, the number of passengers has grown considerably.

More than 100 thousand passengers used the terminal in September, up from over 72 thousand in January.

Mr Lim added the increase has also led to the growth of other low cost carriers or LCCs - even those not operating out of the Budget Terminal.

Tiger Airways and Cebu Pacific operate a total of 244 weekly scheduled flights from the Budget Terminal.

The Budget Terminal currently has a handling capacity of 2.7 million passengers per year.

Copyright © 2006 MCN International Pte Ltd

Business Times - 03 Nov 2006

S'pore welcomes first Jetstar flight

By VEN SREENIVASAN

(SINGAPORE) The Civil Aviation Authority of Singapore rolled out the welcome mat for Australia's Jetstar Airways flight arriving from Cairns via Darwin yesterday.

Some 168 passengers on board flight JQ57 were warmly welcomed by the High Commissioner of Australia to Singapore, Miles Kupa, and Civil Aviation Authority of Singapore's acting director-general of Civil Aviation, Ho Beng Huat.

On board the flight was David Hall, group general manager (Finance), Jetstar Group, who flew into Changi specially to celebrate the occasion.

Operated by Jetstar Asia for and on behalf of Jetstar under the Jetstar brand, it allows the Jetstar group of airlines to operate international services for the first time into Darwin and Cairns. Jetstar's Australian operations will take responsibility for marketing the services and utilise existing traffic rights. Qantas will codeshare on all flights.

The service comes just weeks ahead of its inaugural long-haul flights from Sydney and Melbourne to other Asian destinations like Bangkok, Phuket and Ho Chi Minh.

Speaking at yesterday's welcoming ceremony, Mr Ho welcomed the Jetstar service as another innovative product in the evolving air travel industry.

'Changi Airport already plays host to several low-cost carriers,' he said. 'But Jetstar Airways is a new product in between pure low-cost carriers and full service airlines. The airline's branding as a 'value based carrier' is an innovative offering which includes unique products like a two-class cabin, the availability of video-on-demand players on board the aircraft and even through check-in for passengers and transfer of baggage onto connecting flights.'

The launch of Jetstar Airways' new services to Singapore also comes at a time of strong growth in passenger traffic between Australia and Singapore. Over the past five years, passenger traffic on this sector registered a healthy growth of 11.6 per cent.

Jetstar Airways' Singapore-Darwin-Cairns operations increases the number of flights between Singapore and Darwin by 22 per cent and between Singapore and Cairns by 40 per cent.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Singapore Tiger Airways to fly to Sri Lanka
Thursday, November 2, 2006, 13:39 GMT, ColomboPage News Desk, Sri Lanka.

Nov 02, Colombo: Singapore’s Tiger Airways has decided to fly to six overseas destinations including Sri Lanka’s Colombo, an official for the Singapore's budget airline said.

“We have filed the necessary applications with the authorities in India and Sri Lanka and hope to progressively add the new points to our network from next year," chief executive of the Tiger Airways Tony Davis told media.

“We have had rights to Kolkata for some time but we wanted to go into India in a meaningful way with multiple destinations instead of launching an isolated point,” he further said. Low rate credit card loan for Mercedes Benz,

http://www.colombopage.com/archive/November2133930SL.html

Dec 7, 2006
Growth in low-cost airlines helps S'pore hit 9m mark
New destinations and carriers fuelling rise in passenger numbers; STB aims to grow segment

By Aviation Correspondent, Karamjit Kaur

IN JUST eight months, the number of flights a week operated by low-cost carriers at Changi Airport has jumped from 394 in April to 558 as at Dec 1.

And from just 9.6 per cent of total passenger flights, these airlines now account for 14.5 per cent of total flights at the airport, the Civil Aviation Authority of Singapore told The Straits Times.

New carriers like Air India Express and Cebu Pacific that have recently joined the Changi family, and existing players like Tiger Airways and Jetstar that have added new destinations and flights, have fuelled the growth.

Singapore's tourism sector comes up the winner. With still about four weeks to go before the year closes, Singapore welcomed its nine millionth visitor yesterday, beating last year's record of 8.9 million visitors.

The Singapore Tourism Board recognises the potential in the low-cost travel market and will study ways to grow this segment, assistant chief executive for leisure, Mr Chan Tat Hon, said yesterday.

By flying to new places, budget carriers have created a whole new market instead of taking slices from the business of full-service carriers, said Ms Alicia Seah, vice-president of leisure travel at UOB Travel Planners.

For example, Tiger Airways flies to Haikou and Guangzhou in China, while Jetstar offers chartered flights to Guiyang in southern China - all new destinations not offered before.

One fan of low-cost carriers is Ms Honeybee Hubahib, 50, who runs a small business in Manila where she lives. She said: 'On average, fares on low-cost carriers are 30 to 40 per cent lower than what full-service carriers charge and more airlines in the market also mean more choice of flights and timings.'

Ms Hubahib, who has flown on Jetstar, Valuair and Cebu Pacific, can now afford to travel five to six times a year for business and leisure, instead of three to four times previously.

All the travelling makes for better business at Changi Airport, which opened a dedicated terminal for budget carriers in March promising lower operating costs.

Tiger and Cebu Pacific currently operate out of the facility, which handled about 657,000 passengers in seven months since its opening on March 26. The terminal will become even more crowded with anchor carrier Tiger planning to add even more destinations to its network.

The airline, which expects to carry its two millionth passenger 'any time now', has applied for rights to fly to five cities in India and Colombo in Sri Lanka, said a spokesman.

Tiger, which started flying in September 2004 with just two aircraft and three destinations, today has a network that covers 16 destinations in seven countries. By the year end, the airline will have nine planes.

Another key player is Orangestar Holdings, which owns Jetstar and Valuair and flies to 13 destinations including Yangon in Myanmar and Siem Reap in Cambodia.

Chief executive officer Chong Phit Lian said: 'People who used to holiday just once a year can now afford to fly to Bangkok three times a year because the fares are so attractive.'

karam@sph.com.sg

Copyright © 2006 Singapore Press Holdings. All rights reserved.

Friday December 8, 2006

More flights out of Changi by budget carriers

IN JUST eight months, the number of flights a week operated by low-cost carriers at Changi Airport has jumped from 394 in April to 558 as at Dec 1.

And from just 9.6% of total passenger flights, these airlines now account for 14.5% of total flights at the airport, the Civil Aviation Authority of Singapore said.

New carriers like Air India Express and Cebu Pacific that have recently joined the Changi family, and existing players like Tiger Airways and Jetstar that have added new destinations and flights, have fuelled the growth.

Singapore's tourism sector comes up the winner. With still about three weeks to go before the year closes, Singapore welcomed its nine millionth visitor yesterday, beating last year's record of 8.9 million.

The Singapore Tourism Board recognises the potential in the low-cost travel market and would study ways to develop this segment, assistant chief executive for leisure, Chan Tat Hon, said yesterday.

By flying to new places, budget carriers have created a whole new market instead of taking slices from the business of full-service carriers, said Alicia Seah, vice-president of leisure travel at UOB Travel Planners.

One fan of low-cost carriers is Honeybee Hubahib, 50, who runs a small business in Manila.

She said: “On average, fares on low-cost carriers are 30% to 40% lower than what full-service carriers charge and more airlines in the market also mean more choice of flights and timings.” – The Straits Times / Asia News Network

Dec 14, 2006
Tiger greets its 2 millionth passenger

MRS Sunee Supasitthumrong became budget airline Tiger Airways' two millionth passenger at Changi's Budget Terminal yesterday.

The Thai woman was returning to Bangkok with her daughter on flight number TR112 after visiting her husband who works here. It was the first time she had flown with the airline.

At an awards ceremony held at the terminal's departure lounge yesterday, she was presented with a plaque, Tiger Airways flight vouchers worth $888 and a hotel voucher worth $1,000.

Other passengers on the same flight were also given a goodie bag to celebrate the milestone.

Singapore's only home-grown budget airline, Tiger Airways, with a current fleet of eight aircraft, passed the 1.5 million-passenger mark in August.

Its inaugural flight was on Sept 15, 2004.

Copyright © 2006 Singapore Press Holdings. All rights reserved.

Business Times - 14 Dec 2006

Tiger Airways plans extra flight to Darwin in 2007

SINGAPORE - Tiger Airways will launch an extra flight to Darwin from June 2007, increasing the airline's flight frequency to the Australian city to five times a week, the Singapore-based budget carrier said on Thursday.

With the extra flight, Tiger Airways will offer almost 100,000 seats annually between the two cities, the airline said in a statement.

The carrier began flights to Darwin in December last year and has carried over 40,000 passengers during the first 12 months, it said.

Tiger Airways currently flies from Singapore to 14 destinations in Australia, Thailand, Vietnam, China, Macau, Indonesia and the Philippines. -- AFP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 12 Jan 2007

Budget carrier Tiger Airways launches service to Perth

SINGAPORE - Tiger Airways will launch flights between Singapore and the Australian city of Perth beginning in March, the budget carrier said on Friday.

Singapore-based Tiger is the first Asian budget carrier to link Asia with the Western Australia city, the airline's chief executive, Tony Davis, said in a news release.

Perth becomes Tiger's second Australian destination after Darwin.

The airline said it will fly to Perth four times a week beginning March 23, with plans for daily service beginning in November.

Tiger Airways, which launched its first flight in 2004, flies from Singapore to destinations throughout South-east Asia and to China. -- AFP

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 28 Feb 2007

Tiger ropes in ex-Jetstar Asia exec

He may play role cracking the Australian market with first overseas base there

By VEN SREENIVASAN

(SINGAPORE) Tiger Airways has roped in a former senior executive of rival Jetstar Asia and is likely to use him to spearhead its new Australian venture.

BT has learnt that Paul Daff, an experienced hand at Qantas and former Jetstar Asia commercial manager, joined Singapore Airlines' low cost associate recently. He left Jetstar Asia in December last year.

What role Mr Daff, who is in his late 30s, will play at Tiger is uncertain at present but insiders reckon he is likely to play a crucial role as Tiger sets up its first and only overseas base in Australia.

'Daff has been instrumental in working out the commercial deals for Jetstar Asia over the past two or three years, including negotiations with airports, authorities and even in the marketing functions,' said a source who declined to be identified. 'And before coming to Singapore, he was a senior manager in Qantas in Australia.'

All this comes amid Tiger's announcement last month that it would take its Ryanair low cost airline model to Australia. With an initial investment of up to A$10 million (S$12.1 million) and five new Airbus A320s, it plans to set up a base in one of the three major eastern Australian cities - Melbourne, Brisbane and Adelaide. But BT understands that Darwin could also be in the picture as the airline has told its pilots to be prepared to relocate to the northern Australian city if needed.

Tiger already flies between Singapore and Darwin. Tiger, which took to the air in 2004, is 49 per cent owned by SIA, while Singapore investment firm Temasek Holdings has 11 per cent. Irelandia, the family investment company of Ryannair founder, Tony Ryan, has 16 per cent, while US-based aviation investment firm Indigo Partners holds the rest.

Australian observers see Tiger posing a serious challenge to incumbents like Virgin Blue and Jetstar Australia. And now with Mr Daff on board, Tiger appears to be poised to take on its rivals in their back yards.

Tiger's chief executive Tony Davis has spelt out the battle plans very clearly. 'We're determined to make Tiger Airways a national carrier and we'll be entering a lot of markets around the country,' he said recently. 'We've been competing very aggressively in Singapore against Jetstar Asia, which Qantas brought into the Singapore market, and it's probably only right and proper that we reciprocate the favour by competing aggressively and effectively here in Australia.' But its rivals are not taking it lying down.

Virgin Blue has ordered new aircraft to substantially boost capacity over the next year. It is also looking into starting up a true LCC to protect the bottom end of its market against Jetstar and Tiger. The Richard Branson-controlled discount carrier is also said to be lobbying against allowing Tiger to set up its base in Brisbane or Gold Coast.

And Alan Joyce, who heads the Qantas subsidiary, Jetstar Australia, warned Tiger that it was entering a highly competitive market where Australian consumers were 'well attuned to the availability of low fares, having experienced such fares over the last few years'.

Even the Australian media seems to be ambivalent about Tiger's arrival.

In an article yesterday, The Age noted that Tiger had 'pumped out an impressive amount of red ink, with accumulated losses to March last year of about $A50 million' in three years of operations.

'The airline has a deficiency in shareholders' funds of about $32 million and a working capital deficiency of $78 million,' the newspaper noted. 'It has debt of more than $70 million, commitments for aircraft and equipment of $540 million, and has contracted to buy another eight aircraft worth about $630 million. At first glance it would appear Tiger, launched with an equity base of only $20 million, is defying financial gravity even without committing itself to entering this market. Its accounts - more particularly, a statement by the directors who signed them - however, explain why it is still aloft.'

But the newspaper noted that its deep pockets made Tiger 'a more formidable threat than its financials or the modest budget for its Australian onslaught - A$10 million - would suggest.'

Still, many industry insiders reckon the Australian market is an attractive one for Tiger, given that the incumbents are enjoying high load factors and strong yields amid tight capacity. But it will be critical for the airline to quickly secure the 'Golden Triangle' route of Melbourne-Syndey-Brisbane/Gold Coast.

Separately, Tiger yesterday announced the launch of its pre-flight Seat Selection programme for all flights on its new Perth route. Under the arrangement, passengers can pre-select their seats during the online booking process or via the call centre, for a fee.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Budget carrier Tiger Airways gets Australian approval to fly to Perth
Posted: 13 March 2007

SINGAPORE - Tiger Airways has received regulatory approval from Australia to fly to the western city of Perth which will be its second Australian destination after Darwin, the Singapore budget carrier said on Tuesday.

The budget carrier, which is 49 percent owned by Singapore Airlines, said in February it planned to expand into the Australian market by the end of the year, competing with incumbents Qantas and Virgin Blue.

"This is great news and reinforces our confidence that the Singapore-Perth route is going to be a big winner for both Tiger Airways and tourism in Western Australia," chief executive Tony Davis said in a statement.

Starting March 23, the carrier will fly four times a week to Perth and intends to expand the schedule to a daily basis from May onwards, instead of November as originally planned.

Tiger, which began flying in 2004, flies from Singapore to destinations throughout Southeast Asia and to China.

The carrier is owned by four shareholders, including Singapore Airlines which has a 49 percent stake, and Singapore investment firm Temasek Holdings with 11 percent.

Irishman Tony Ryan, founder of the wildly successful Ryanair, also has a 16 percent stake in the airline.

Copyright © 2007 MCN International Pte Ltd. All Rights Reserved.

15 March 2007
Tiger Airways gets approval for Australian domestic airline

International low fare airline, Tiger Airways, has obtained formal approval from Australia's Foreign Investment Review Board to proceed with the creation of its wholly owned subsidiary, Tiger Airways Australia.

The FIRB confirmed that the creation of Tiger Airways Australia was consistent with the Government’s foreign investment policy and did not place any specific conditions on the creation of the new airline.

Following the FIRB approval, Tiger Airways Australia will now work towards obtaining its Air Operator’s Certificate.

It plans to start domestic services in Australia later this year.

CEO Tony Davis said that Tiger Airways Australia is entering into final stages of negotiation with a number of Australian airports for location of its principal operating base.

A decision will be made within the next few weeks to confirm the Australian city where the airline will be based.

Tiger Airways will start services to its second international destination in Australia when it starts flights between Singapore and Perth next week.

Copyright © 2007 MediaCorp Radio New Media Development

Business Times - 17 Mar 2007

Tiger picks Menzies for its ground services in Perth

By VEN SREENIVASAN

TIGER Airways has appointed Menzies Aviation as its ground-handling agent in Perth, Western Australia.

Menzies will manage all of Tiger's ground-handling services - passenger and ramp - from Macrh 23, when the airline's services to Perth start.

'We are pleased to appoint Menzies Aviation our ground handler in Perth,' said Tiger's operations director Christopher Ward.

'Menzies has built up an impressive track record within Australia as well as around the globe. We have worked closely with Menzies in Macau since the start of our service there in 2005, and are confident of receiving the same high level of service and cost-control processes for our Perth operation,' Capt Ward said.

Menzies general manager David Borthwick confirmed the Tiger contract.

And Menzies's Australia managing director Alistair Reid said: 'Over the next few weeks we will take delivery of specialist handling equipment, sourced locally and overseas, to service the new contract. The addition of ground services in Perth to our portfolio almost completes our dual cargo and ground services product offering at all of Australia's leading airports.'

Tiger is expected soon to announce ground services operators for its eastern Australian-based airline.

Tiger Airways Australia is in final stages of negotiation with a number of Australian airports for the location of its main operating base.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Hmm....seem like Tiger will be choosing Darwin to be its first overseas hub.....:yes:

Budget carrier Tiger Airways sets up Australian subsidiary
Posted: 19 March 2007

SINGAPORE : Tiger Airways has set up a subsidiary in Australia after getting regulatory approval, the Singapore-based budget carrier said Monday.

Tiger Airways Australia Pty Ltd was incorporated on Friday in the country's Northern Territory state where its capital city, Darwin, was the airline's first Australian destination, it said in a statement.

The carrier, 49 percent owned by Singapore Airlines, last month announced plans to expand into the Australian market by the end of the year, a move that would pit it against the likes of flag carrier Qantas and Virgin Blue.

"Tiger Airways' first destination in Australia from Singapore was Darwin and we look forward to the further expansion of our business in the territory," chief executive Tony Davis said in a statement.

Last week, Tiger Airways said it has received Australian approval to fly to the western city of Perth in Western Australia state, the carrier's second destination after Darwin.

Starting March 23, the carrier will fly four times a week to Perth and intends to expand the schedule to a daily basis from May onwards, instead of November as originally planned.

Tiger, which began flying in 2004, flies from Singapore to destinations in Southeast Asia and China.

The carrier is owned by four shareholders, including Singapore Airlines and investment firm Temasek Holdings with 11 percent.

Irishman Tony Ryan, founder of the wildly successful Ryanair, also has a 16 percent stake. - AFP/ch

Jetstar Asia welcomes 3 millionth passenger
By Chio Su-Mei, Channel NewsAsia | Posted: 16 October 2007 2100 hrs

SINGAPORE: Jetstar Asia welcomed its 3 millionth passenger on Tuesday.

The airline is celebrating this milestone as an early birthday gift, just ahead of its third anniversary.

And looking ahead, the low-cost carrier is set to spread its wings further in Asia.

30-year-old business executive, Mr Lee Swee Poh, is a first-time customer of Jetstar Asia and the 3-year-old airline's 3 millionth passenger.

And proving that good things come in threes, Mr Lee walked away with prizes that include travel vouchers worth S$3,333.

He said: "Maybe I will use the vouchers to travel to Taipei and then Hong Kong."

According to the CEO of Jetstar Asia, Mr Lee will soon have more travel destinations with Jetstar.

Ms Chong Phit Lian said: "We are now planning for new destinations for next year. We have another new aircraft coming in February and we're looking at places like Macau and are considering increasing the frequency to Ho Chi Minh or more cities in Indonesia.

"The long-term plan is for us to look at the additional fleet requirements and how to best utilise Singapore's position as the hub for the region."

That is why Jetstar Asia is confident that it will get more than a million passengers next year.

- CNA/so