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.

news on budget aviation here is getting less and less frequent...

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

Btw in case you guys didnt know, Valuair just add more flight to Jakarta from SIN. its not twice a day from SIN - CGK.

babystan. thanks for the picture! I wonder where are your friend right now? (huaiwei)?

cheers

Btw in case you guys didnt know, Valuair just add more flight to Jakarta from SIN. its not twice a day from SIN - CGK.

babystan. thanks for the picture! I wonder where are your friend right now? (huaiwei)?

cheers

Oh yeah I saw the valuair advertisement on the newspaper about the additional flight from Singapore to Jakarta.....:yes:

Not sure where he is......:)

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

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.

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.

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.

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.

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.

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

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

Don't think it'll happen at all.....:yes:

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.

Don't think it'll happen at all.....:yes:

I agree, AirAsia has been trying to get a into the SG Market for a long time. They can fly to Changi with their Indonesian and Thai Associate companies but thats about it.

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

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

This story was printed from TODAYonline

LCC terminal a white elephant?

Tiger only carrier committed so far as CAAS welcomes all airlines

Weekend • October 22, 2005

Singapore will open its $45-million low-cost airline terminal in a few months, even though it risks becoming a white elephant, with only one carrier committed to using it.

The terminal is due to open early next year, but so far only Singapore Airlines' low-cost affiliate Tiger Airways plans to operate from it.

Singapore was the first country in the region to take advantage of the rapid growth in low-cost carriers, or LCCs, and announce plans to build a low-cost terminal. However, with the limited response, the Republic is now prepared to open it to full service airlines as well, putting it in competition with Changi Airport.

"We welcome all airlines to use the low-cost terminal" if it meets their needs, a Civil Aviation Authority of Singapore (CAAS) spokeswoman said.

CAAS is in discussions with some full-service airlines that have expressed interest, the spokeswoman said, without identifying the carriers. The single-floor complex will be about a twelfth the size of Changi Airport's Terminal One and will be able to handle 2.7 million passengers a year, with scope for further expansion should more airlines want to use it.

Tiger carried half a million passengers in the 12 months ended Sept 30, providing an indication of how many airlines the CAAS was anticipating would use the terminal. Singapore's other LCC, Qantas Airways affiliate Jetstar Asia, is not interested in using the terminal.

"We don't see the benefit for passengers if we go to the low-cost terminal. Who wants to walk across the tarmac when it is raining?" a Jetstar Asia spokeswoman said.

The low-cost terminal will be located near Changi Airport. Passengers will have to walk up to 20 metres on the tarmac between the terminal and the aircraft. Analysts say airlines using the terminal could cut their parking and other charges by 25 per cent to 30 per cent

Another possible customer for the terminal is Thai AirAsia, an affiliate of Malaysia's AirAsia, but the airline has yet to decide. Singapore "has held discussions with Thai AirAsia representatives on a number of occasions, and Thai AirAsia is still considering," the CAAS spokeswoman said.

She added that the terminal will open even if no other airline wants to use it. — Dow Jones

Copyright MediaCorp Press Ltd. All rights reserved.

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.

I wonder when 3K will start its new Indian services and what destinations it and VF have in store for us??

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.

News article stating that the new budget terminal feature a Baggage Reconciliation Room....:yes:

廉价航空终站 行李安检室能防爆

林顺华(2005-10-30)

　　正在兴建中的廉价航空终站虽没有登机桥、不会铺设地毯、部分建筑也无冷气装置,但新加坡民航局在处理终站的保安课题时,却丝毫没有放松。

　　民航局计划在廉价航空终站设立一个能承受爆炸威力的行李安检室(Baggage Reconciliation Room),日前已邀请承包商竞标有关工程。

　　国际航空运输协会(IATA)亚太区发言人钟接庆在回答本报询问时指出,虽然其他国家的机场也设有行李安检室,但大多都不具备承受爆炸威力的功能。樟宜机场的廉价航空终站最终如果落实有关计划,将成为开创先例的“少数分子”。

　　他说:“航空公司和政府机构一定要携手来确保全球航空业的安全。在这方面,樟宜机场一直都采取非常主动积极的态度,履行了它应尽的责任。”

承包商须有经验

　　根据民航局的招标文件,行李安检室的面积将比一般房间更长更高,而且要能承受一定重量和类别的爆炸物。该格局要具备足够的“防爆”能力,以便在发生状况时,整个建筑结构将不受影响。

　　民航局并没有透露所关注的爆炸物重量和类别,也不愿说明工程预算。不过,竞标承包商须拥有这方面的国内外设计经验,才有资格参与。

　　据知,机场保安人员一般上若发现可疑行李,可要求乘客把行李带入行李安检室接受进一步的检查。

　　由于乘搭廉价航空客机的乘客通常都不会办理行李托运手续,而是随身携带上机,因此有关保安设施对确保廉价航空终站的整体安全更加重要。

　　至于樟宜机场的第一和第二搭客大厦,民航局耗资8000万元设立的高科技行李检查系统,也在“幕后”检查每一件托运行李。新系统利用电脑断层扫描机(Computer Tomography Scanner)从多个角度扫描行李,可探测出行李内是否藏有任何爆炸物。

　　系统一旦发现有高度可疑的行李,就自动把行李送入一个椭圆形兼密封的危险物处理器,销毁其中的爆炸物。

　　民航局已分别在去年9月和今年1月,于第一和第二搭客大厦启用新系统。此外,当局也计划在第二搭客大厦装置超过400台闭路电视,24小时监视机场内外的活动,查看可疑的人、物以及车辆。

　　根据招标文件,系统一旦发现有行李长时间地遗留一旁,或是有车子停放太久,便得发出警报提醒值勤的保安人员。

　　樟宜机场在保安方面的努力日前受到肯定,获得美国一份具有影响力的双周刊《机场保安报告》颁发国际机场组“机场保安卓越奖”(Excellence in Airport　Security Award)。

　　针对廉价航空终站的工程进展,民航局发言人表示“一切顺利,相信可如期在明年初启用”。

《联合早报》

(编辑:陈颖佳 )

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.

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

LOL, its funny to see Valuair as a dedicated Singapore - Indonesia route carrier, their profit seems quite good in that routes since no other Singaporean budget carrier flying that route(sin-jkt and sin-sby). On top of that, many Indonesian travel agents are using Valuair to offer the customers a good offer of travel prices. I think Valuair should consider to be an Indonesian carrier, so they can fly for Indonesia domestic routes.

cheers

Hmm first perth, now Darwin.....Hopefully there'll be more to come....:D

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.

http://sg.biz.yahoo.com/051122/15/3wq5y.html

SINGAPORE BUSINESS BRIEFS: Jetstar Asia Adds Cambodia

SINGAPORE (Dow Jones)--Jetstar Asia, a discount carrier part owned by Australia's Qantas Airways Ltd. (QAN.AU), is expanding its regional network with flights from Singapore to the Cambodian cities of Phnom Penh and Siem Reap.

Jetstar Asia, which currently flies to 8 destinations, said it will fly direct to the Cambodian cities three times a week from mid-December.

From Singapore Changi Airport

Jetstar Asia Airways = 9 Destinations
Valuair = 2 Destinations
Orange Star = 11 Destinations

Tiger Airways = 11 Destinations

Interesting to note that just a few months or a year back, Jetstar Asia Airways was complaining about a lack of traffic rights...

From Kuala Lumpur International Airport

AirAsia = 27 Destinations (Domestic & International)

Still A LONG WAY TO GO FOR SINGAPORE BASED BUDGET CARRIERS!

Whats the difference between Orange star and Jetstar? I thought they were the same airlines? orange star is Jetstar right?

cheers

Whats the difference between Orange star and Jetstar? I thought they were the same airlines? orange star is Jetstar right?


Orange Star is the company which owns both Valuair and Jetstar. He said that it has 11 destinations which is a combination of both airlines current destinations.

It is however likely that Valuair will be folded into the Jetstar Asia brand when LCCs can fly into Indonesias main cities.

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.

From Singapore Changi Airport

Orange Star (Jetstar Asia Airways & Valuair)
- Bangkok
- Hong Kong
- Jakarta (Valuair)
- Kolkata
- Manila
- Phnom Penh
- Phuket
- Siem Reap
- Surabaya (Valuair)
- Taipei
- Yangon
= 11 International Destinations

Tiger Airways

From Singapore Changi Airport
- Bangkok
- Chiang Mai
- Danang
- Darwin
- Hanoi
- Hat Yai
- Ho Chi Minh City
- Krabi
- Macau
- Manila
- Padang
- Phuket
= 12 International Destinations

From Manila Clark Airport
- Macau
= 1 International Destination

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

Guess we now know that there will eventually be two singapore based budget carriers, each backed by a full service airline...byebye Valuair, I always loved your blue livery, nice name (as compared to Tiger) and cool looking website.

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

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.

08 December 2005

Qantas launches international budget airline

SYDNEY : Australian flag carrier Qantas confirmed the launch on Thursday of a long-haul budget offshoot under its Jetstar banner, but it postponed until next week a much-awaited decision on the order of up to US$15 billion worth of new aircraft.

Chief Executive Geoff Dixon said Jetstar would commence its long-haul international operations by January 2007 and would require 10 aircraft for its initial, non-stop routes between Australia and Asia-Pacific destinations.

"Subsequent expansion will see Jetstar undertake two-stage flying to European and other destinations," he said, adding that the emphasis for the budget carrier would be "leisure routes".

"We believe Jetstar will deliver the lowest cost air operations of any international carrier operating to Australia, similar to our experience with Jetstar's Australian operations," he said.

Dixon said Qantas expected the Jetstar Group would be operating a fleet of 60 narrow and wide-body aircraft on domestic and international routes within five years.

Qantas launched the Melbourne-based Jestar as a budget domestic airline in early 2004 to counter the success of Virgin Blue, part-owned by Richard Branson's Virgin group.

Jetstar began flying to New Zealand destinations last month.

The decision to expand Jetstar further into a long-haul budget carrier was taken at a meeting of the Qantas board on Wednesday.

Dixon said the board had put off a decision on a major order of new aircraft until next Wednesday, when as special meeting will be held.

"This meeting is expected to discuss and approve major aircraft purchases, including the new aircraft for Jetstar's international operations," he said.

Industry sources have expected Qantas to order a combination of Boeing and Airbus aircraft for up to US$15 billion.

Late revisions by both Boeing and Airbus on Wednesday forced the Qantas board to postpone its final decision, The Australian newspaper reported on Thursday.

The battle by the plane manufacturers to secure Qantas business has been described as the closest fought in the airline's history.

Qantas is set to choose between Boeing's ultra-long-range 777-200LR and Airbus' A340-500, and between Boeing's 787 Dreamliner and Airbus' fuel efficient A350.

The airline's final order will add to the US$13.5 billion Qantas has already committed to modernisation of its aircraft fleet.

In Thursday's announcement, Dixon stressed that Jestar's expanded operations would "not be in any way at the expense of the Qantas full service domestic and international operations".

"The Qantas mainline operations are and will remain our primary focus," he said.

Expansion into new markets could involve either Qantas or Jetstar, depending on which had "the most suitable product" for a given route, he said.

Dixon said Jetstar's growth would create hundreds of new jobs in Australia over the next three years.

Its initial route network will focus on destinations within six to 10 hours of Australia, including serving some destinations already handled by Qantas mainline, but from different airports.

In addition to complementing Qantas' mainline operations, Jetstar would work closely with its Singapore-based offshoot, Jetstar Asia, in the intra-Asia market, he said. - AFP/de

Copyright © 2005 Agence France Presse. All rights reserved.

This story was printed from TODAYonline

Low-cost barrier

That cheap flight to Kuala Lumpur will have to wait as Malaysia refuses to open up air route to Singapore

Wednesday • December 7, 2005

Lee Ching Wern
chingwern@newstoday.com.sg

LOW-COST carriers which have been lobbying for the opening up of the lucrative Singapore-Kuala Lumpur route had their hopes crushed yesterday. Malaysia will not agree to have more carriers operating the flights ahead of the Asean "open skies" policy due to take effect in 2008.

The New Straits Times quoted a Malaysian transport ministry official as saying that opening up the route would not benefit Malaysia Airlines (MAS) much.

"SIA and possibly SilkAir will be able to fly to Kuala Lumpur and several other destinations in Malaysia when all present restrictions on passenger flights between Asean capital cities are lifted by 2008. But for MAS, Singapore will remain just one destination. The benefits derived from liberalisation will not be the same," the transport official said.

"Under the circumstances, Malaysia has no choice but to stick to the present schedule of the KL-Singapore shuttle flight".

Analysts told Today that Malaysia's reluctance on this score may be related to the recent financial woes of MAS.

MAS and Singapore Airlines (SIA) now operate 182 out of the 213 flights a week between Singapore and KL. Sri Lankan Airlines, Japan Airlines, Pakistan International Airlines, Biman Bangladesh Airlines and Emirates make up the rest.This virtual monopoly means that the KL-Singapore route is extremely lucrative for both airlines.

The 14 daily flights operated by MAS and 12 daily flights by SIA are almost always full. A round-trip economy class airfare from Singapore to KL costs about $416. In comparison, an SIA flight to Bangkok can cost $160.

Last month, Singapore MPs urged the Government to allow more carriers on the route so consumers could enjoy lower fares.

"The Singapore-Malaysia air transport market is ideal for low-cost airlines because it is such a short distance and there is a huge travel market on both sides," said Mr Nicholas Ionides, regional managing editor (Asia) of Flight International.

According to Singapore's Ministry of Transport (MOT), the present air traffic rights between the two countries are governed by the Singapore-Malaysia Air Services Agreement (ASA) that was signed in 1980.

Since then, the quota for flights under this deal has been used up, with none left for new carriers. But MAS and SIA can still introduce additional flights other than those allowed by ASA under the "revenue pool". Under this commercial arrangement, SIA shares 50 per cent of all net revenue with MAS, but bears all its operating costs.

Looking ahead, MOT said that Singapore would like to expand the ASA and welcomes more carriers on the route, but this is subject to Malaysia's approval.

"The governments have to come to terms with the new kinds of airlines to this part of the world and recognise they can bring benefits to the whole economy," said Mr Ionides.

But analysts argued that given MAS' financial difficulties, Malaysia might not want to let go of a money-making route.

"In view of the fact that Malaysian airlines is financially not so strong now, it seems like it has more to lose than Singapore Airlines if ASA is liberalised.

"They could be buying as much time as they can before the open skies agreement in 2008 kicks in," said an aviation analyst. He said that more Malaysians might travel to Singapore and take SIA to other parts of the world, if low-cost carriers make it easy for them to go to Changi.

In the second quarter ended Sept 30, MAS reported record losses of RM367.7 million ($164 million). The projected losses for the financial year ending March 2006 could rise to between RM800 million and RM1 billion.

Meanwhile, the Malaysian government has already started its recovery plan for the national carrier. For a start, MAS will pass on the bulk of its loss-making domestic routes to budget airline AirAsia. Yesterday, AirAsia announced that it has proposed to operate all but three of MAS' domestic routes.

"Malaysia Airlines will be free to focus on medium- and long- haul flights'," AirAsia's Chief Executive Tony Fernandes told Bloomberg.

Meanwhile, consumers will have to wait a little longer before they get to enjoy cheap flights to KL.

Copyright MediaCorp Press Ltd. 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.

98$ thats cheap:)

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.

TIGER OFFERS $1 FARE TO DARWIN

BOOK now and you could pay just $1 for a Singapore-Darwin seat on Tiger Airways.

But the promotion, which ends on Friday, is only for one-way travel. Travellers will also pay airport taxes and other surcharges. The full fare could be about $350, according to an online check. The regular return fare costs around $500.

To enjoy the $1 fare, one must fly between Dec 19 and Dec 30, said the airline in a statement yesterday. The Singapore Airlines-backed carrier will fly to the Australian city four times a week. By the end of next month, it will fly to 13 points in seven countries.

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Valuair & Jetstar Asia Airways
From Singapore
Jakarta, Surabaya, Denpasar, Bangkok, Bangalore, Manila, Hong Kong, Taipei, Kolkatta, Phuket, Yangon, Siem Reap, Phnom Penh, (13 Destinations)

Tiger Airways
From Singapore
Bangkok, Chiang Mai, Danang, Darwin, Hanoi, Hat Yai, Ho Chi Minh City, Krabi, Macau, Manila, Padang, Phuket (12 Destinations)
From Manila
Macau (1 Destination)

Hmm......seems like they can still exapnd somemore.....:yes:

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.

December 15, 2005

S'pore low cost terminal to open its doors next yr

Singapore’s terminal for low cost carriers will open its doors in March next year.

Travelers departing from the new terminal will pay a passenger charge of $13.

This is much lower than the $21 fee at Changi Airport’s Terminals 1 and 2.

The single-storey terminal has no travellators, escalators and aerobridges.

Travelers however can enjoy a free shuttle bus service to link passengers to Changi Airport’s existing terminals, and vice versa.

Services and facilities such as money changers, Internet facilities, duty-free shopping, and food and beverage outlets will also be available at the terminal.

Copyright © 2005 MediaCorp Radio Internet Development Unit

http://www.938live.sg/ListDetail.aspx?SubCategoryID=2&Diff=0&Catgrp=News#5270

Dec 16, 2005
Low-cost terminal opens in March
Tax will be $13, instead of usual $21; airlines to benefit from lower terminal charges

By Karamjit Kaur
Transport Correspondent

PASSENGERS who use Changi Airport's new low-cost terminal, which will open on March 26, will pay $13 in departure tax, instead of the $21 at the main terminals.

The charge is lower than expected and, according to the Civil Aviation Authority of Singapore (CAAS), is the lowest for international flights among airports in the region.

It had been said, when plans for the new facility were first drawn up, that passengers would probably pay about $18.

The CAAS, which announced the terminal rates and opening date yesterday, said the departure tax has two parts - $7 for passenger service and $6 for security charges.

At the main terminals, the passenger service charge is $15, but the security tax is the same because the same security systems will be used at all terminals, said the CAAS.

A free shuttle bus will link the low-cost terminal and the main terminals at Changi Airport, a five-minute ride away.

Airlines which use the new facility will be able to halve their costs.

There will be no discount for parking and landing fees, since all carriers will use the same runways, taxiways and other airside services.

But office space and check-in counters will be cheaper to rent, and there will be no aerobridge charge because passengers will walk about 15m to 20m across the tarmac to board the aircraft.

The International Air Transport Association (IATA), which had discussions with the CAAS on the terminal rates, said yesterday that the charges were fair.

IATA Asia-Pacific spokesman Albert Tjoeng said: 'We have said from the onset that there should be a level playing field for all airlines, whether budget or full-service.'

So far, only Tiger Airways has said it will use the new terminal, which consists of two adjacent single-storey buildings, one housing the departure hall and the other handling arrivals.

Full-service airlines can use the new terminal, but none has shown interest so far.

A key problem is that there will be no elaborate baggage transfer system like those in Terminals 1 and 2, so passengers with connecting flights must carry their bags on the bus and check them in again for their next flight.

The low-cost terminal, which can handle 2.7 million passengers a year, a tenth of the capacity of Terminal 1 or 2, is the first in the region. Malaysia and Thailand have announced similar plans to build their own budget terminals.

Mr Wong Woon Liong, CAAS' director-general of civil aviation, said: 'With budget travel becoming more prevalent in this region, we are doing what we can to promote the growth of this segment of air travel in Singapore.'

karam@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Budget Terminal Update (16/12/05):

http://i26.photobucket.com/albums/c121/ylstan01/DSC010961.jpg

thanks for the pic babystan03...:okay:

You're welcome.....:yes:

Valuair & Jetstar Asia Airways
From Singapore
Jakarta, Surabaya, Denpasar, Bangkok, Bangalore, Manila, Hong Kong, Taipei, Kolkatta, Phuket, Yangon, Siem Reap, Phnom Penh, (13 Destinations)

Tiger Airways
From Singapore
Bangkok, Chiang Mai, Danang, Darwin, Hanoi, Hat Yai, Ho Chi Minh City, Krabi, Macau, Manila, Padang, Phuket (12 Destinations)
From Manila
Macau (1 Destination)

If Tiger were to have another hub in Asia, which one do u think it'll be?? :?

Macau, Manila, Darwin

A new LCC based in CMB said its finalising a strategic deal with an asian airline. Do you think that this could be TR taking a stake and creating a 2nd airline to tap India?

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.

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.

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 - 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.

The price Jetstarasia is quoting is quite expensive for an airline that touts itself as a LCC!

Air Canada bid ousts Singapore

The Age - January 28, 2006

Opposition is hardening within Federal Government ranks on allowing Singapore Air access to the trans-Pacific route after Air Canada this week announced plans to begin flights between Los Angeles and Sydney early next year.

Air Canada will join Qantas and United Airlines to be the only airlines to fly directly on the route, which accounts for up to 20 per cent of Qantas' profits.

"It certainly diminishes the argument Singapore has for the need for more competition," said federal Liberal backbencher and Qantas supporter Bruce Baird.

"From my point of view they (Air Canada) have more claim to fly across the Pacific than Singapore Airlines because they will be flying Canadians back home," he said.

There is further speculation another US carrier may enter the capacity-starved route amid early signs of a recovery in the North American aviation market.

According to some reports, Singapore Air had already lost the support of some politicians. A federal cabinet aviation policy review due in March is expected to heavily restrict Singapore Air's access on the LA route. There are suggestions Singapore Air might be allowed to operate a paltry three weekly services from Sydney to LA and not use its giant A380s on the route.

The Government leader in the Senate, Nick Minchin, previously cited as a supporter of opening up the route, is now said to be against Singapore flying on it.

Prime Minister John Howard has already voiced caution over allowing Singapore Air on the route. And there is speculation National Party leader Mark Vaile and Senator Ian Campbell have softened their pro-competition stance.

Qantas is now expected to argue that Singapore Air's entry to the route would see it competing with three Star Alliance airlines on the route.

Centre for Asia Pacific Aviation managing director Peter Harbison said the Air Canada announcement could damage Singapore Air's ability to gain access to the Sydney to Los Angeles route.

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.

Singapore's Budget Terminal only has one tenant so far.

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 - 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.

Argh, so many mistakes from the reporter...

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.

Its not ewair but AWAir.

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.

Hah, A380? its airbus A320 not A380...

Adam Air's domestic network (where it is the second biggest player in terms of passenger carriage and routes),

Its not even second or third biggest, maybe fourth or fifth. 1st is Garuda, 2nd is Lion air, 3rd is Merpati nusantara airlines and 4th is might be Adam air if not Batavia air.

cheers

^^
I think Batavia still larger company than ADAM

Argh, so many mistakes from the reporter...

Singapore government popaganda in effect

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.

Hmm...I wonder where's the location of the 2nd hub?? :?

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.

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

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.

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.

Business Times - 18 May 2006

Tiger Airways files complaint

It alleges that Jetstar Asia is planning tocollude with parent Qantas

By VEN SREENIVASAN

(SINGAPORE) Singapore Airlines' low-cost associate Tiger Airways has filed a complaint with competition regulators, protesting that its budget-airline rival Jetstar Asia is planning to collude with its own parent, Qantas.

BT understands from industry insiders that Tiger Airways, which is 49 per cent owned by SIA, has filed a complaint with the Competition Commission of Singapore (CCS) over plans by Singapore-based low-cost rival to offer interlining link-ups with Qantas and its sister airline Jetstar International, which will soon start international services from Sydney and Melbourne.

The CCS is a statutory body established in January last year under the Competition Act (Chapter 50B) to prevent anti-competitive agreements between two or more independent competitors, or anti-competitive actions by associations of undertakings. Section 47 prohibits conduct which is an abuse of a dominant position in a market. The commission comes under the purview of the Ministry of Trade and Industry (MTI).

No details were available at press time and officials of Tiger Airways were not contactable.

However, Orangestar chief executive Chong Phit Lian told BT that Jet star, which is one of two airlines under the group (the other being Valuair), had made the necessary filings notifying the relevant authorities about its plans.

'We have followed proper procedures and informed the CCS of our plans,' Ms Chong said. 'What we want to do is offer better choices and a wider range of products to our customers. And by working together with Qantas, we also make better use of the strength of the Singapore hub.'

Qantas, meanwhile, is believed to have filed similar notifications with the Australian Consumer Competition Commission.

Qantas is Orangestar's leading shareholder, with a 44.5 per cent stake, though this could have risen to almost 49 per cent following a recent cash call by the company. Orange star's other leading shareholder is Temasek Holdings, whose stake is said to have risen from around 30 per cent to almost 40 per cent after Orangestar placed out 144 million shares on offer at 25 cents each last month.

Speaking to BT last month, Ms Chong said that the shutdown of Qantas subsidiary Australian Airlines and Jetstar International's plans to start international flights offered the Singapore-based low-cost carrier an opportunity to expand into interlining operations with Jetstar International at common destinations.

'We will be in a position to connect passengers to and from these destinations into our route network.'

But Tiger Airways is apparently crying foul.

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

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.

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.

Has Calcutta been dropped from one of the Singaporean LLC route networks? I am sure that one of the airlines had flights to Calcutta a few months ago but no longer it seems.... :(

Budget terminal from the plane
http://img102.imageshack.us/img102/7315/dsc0034bud4gd.jpg

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.

July 14, 2006
Name change means tie-up perks for Jetstar fliers
Jetstar Asia to take same name as sister airline but Tiger against link-up plan

By Aviation Correspondent, Karamjit Kaur

JETSTAR Asia in Singapore will soon be known simply as Jetstar, taking the same name as its Australian sister airline.

Consumers will benefit from the synergies that follow from this consolidation, Jetstar Asia's chief executive officer Chong Phit Lian told The Straits Times.

She said: 'For example, a single website address will allow passengers to book flights operated by either of the two airlines quickly and without hassle.'

Where available, passengers will also be able to make multi- destination bookings like Bangkok-Singapore-Bangalore.

The options will open up even more when Jetstar in Australia launches its international services this November to Honolulu, Osaka, Bali and Phuket, among other destinations.

The flights will originate from Sydney, Melbourne or Brisbane.

With this consolidation, telephone bookings will be coordinated as well: Someone who contacts the call centre here can book a Jetstar in Australia ticket - an option not available now.

The new website, which is now being tested, will be launched on July 26, the same day Jetstar Asia officially becomes just Jetstar.

The renaming exercise is part of a bigger plan by Qantas, which owns 44.5 per cent of Jetstar Asia and all of Jetstar in Australia, to create a pan-Asian network of routes and offer more convenient combined itineraries for passengers.

The tie-up will also reduce operating costs for its airlines, which have been hit by sky-high fuel prices and protectionist skies that curb their expansion.

Eventually, the plan is for Qantas and the airlines in its stable to fix fares and coordinate flight schedules as a single entity.

Orangestar Holdings which owns Jetstar, has filed applications with the Australian Competition and Consumer Commission and the Competition Commission of Singapore for exemption from rules aimed at weeding out practices that kill or stifle competition in the market. Final decisions are still pending.

Singapore's budget airline Tiger Airways, which competes with Qantas on the Singapore-Darwin route and with Jetstar Asia to Bangkok and Phuket, has protested against the plan.

Its chief executive officer Tony Davis has argued that as an independent airline, Tiger will be hard-pressed to compete effectively against Qantas' combined team.

But Ms Chong has said that the single website and the plans to offer multi-destination packages do not run afoul of existing regulations.

karam@sph.com.sg

Copyright © 2006 Singapore Press Holdings. All rights reserved.

July 15, 2006
Flying cheap
Budget Terminal offers fuss-free way to travel

By Kannan Chandran

AS YOU approach the carpark of the Budget Terminal, you get a sense of what to expect.

You have to wind down your window and slot your CashCard into the reader before the barrier lifts. No automatic beep of the ERP in-vehicle unit greets you to start clocking your time at the low-frills Budget Terminal.

If it is raining, you had best have an umbrella ready, or make a dash across the road into the departure or arrival terminals, located in two single-storey buildings. Not easy if you are lugging luggage.

The Budget Terminal sits on 25,000 sq m of land, roughly the size of three football pitches, and opened for business on March 26 this year. The structures put on a lively front: purple lettering against the pastel yellow departure building, and the lime green wall of the arrival building.

Compared with Changi Airport, the Budget Terminal is spartan. But for that, you pay less airport tax. Banners declare that the tax is $7, less than half of what Changi Airport charges ($15), and the lowest in the region.

Once inside the departure hall, the vast open space sends the young children scampering about noisily, giving little chance for the piped-in music to be heard. The walls are cement screed, the flooring is off-white homogeneous tiles and the lighting fluorescent.

Against the length of the hall are 18 check-in counters, lined up below a row of air-conditioning vents. All serve Tiger Airways flights, the only airline using the terminal now.

Some passengers walk up to a large board beside the departure gate, expecting to find their flight information. Instead, they discover it is actually Han's menu. They then head for one of the three monitors listing departure details.

Han's is the only food outlet, besides vending machines for snacks and drinks, in the public area of the terminal.

After clearing immigration and security screening, in the enclosed area, there are four food and beverage and 11 retail outlets. Then it is off to one of 10 boarding gates, facing a runway which is shared with Changi Airport.

When it is time, the jostle begins. Passengers charge up to the attendants dangling their boarding passes, then dash towards the plane to grab the best seats.

A 20m scramble across the tarmac - then up a flight of metal stairs to the cabin - gets you onboard your Airbus A320 plane. If you cannot negotiate the stairs by yourself, you will be turned away. There is no wheelchair access.

Arriving passengers make the same trip across the tarmac, before a trek to the arrival hall. En route, signs welcome visitors in various languages.

In the the arrival hall, passengers wend their way to one of the 14 immigration counters, beyond which are three baggage claim belts, shops selling alcohol and toiletries, and customs clearance. Outside, in the waiting area, apart from the hospitality desk, there is a money changer, ATM, vending machines, and some hard chairs.

The few amenities, coupled with cold, hard-tiled floors and lack of nooks and corners, mean the terminal will not be a haunt for students. The better facilities of Changi Airport make it more conducive for studying.

But for passengers keen to get to their eventual destination, it is a breezy, fuss-free start or end to their journey.

How to score the best budget deals

LOG ON OFTEN

Bookmark the budget sites www.tigerairways.com and www.jetstarasia.com.

Jetstar Asia's senior vice-president (marketing) Debbie Woon says that new seats and fares are uploaded on its site over the weekend. 'Logging on some time after Sunday midnight or Monday morning results in the occasional success for a clever customer,' she hints.

'When a customer logs onto our website, our system automatically loads the cheapest fare available for him to select. As seats sell, the cheaper categories will be filled first, followed by the next price band, and so on.'

AVOID PUBLIC HOLIDAYS

During long weekends and other busy periods such as Chinese New Year and public holidays, fares increase between 30 and 50 per cent. This is because budget airlines operate on the 'tiered pricing model', based on demand and supply.

For instance, a Tiger Airways flight to Padang, Indonesia, features a first-tier fare of $19.98. Once this allotment of tickets is snapped up, the price of the tickets moves to the next, more expensive tier, and so on.

PLAN WAY AHEAD

Flights are offered online up to six months in advance. But the closer to the departure date, the more expensive it becomes.

If you are travelling to Bangkok on July 21, for instance, the cheapest return fare to Bangkok on Tiger Airways is about $194 (excluding taxes).

If you booked when the fares were first released, up to six months before take-off, you will have nabbed a return fare of $114.

FIRST MOVER ADVANTAGE

Traditional lull periods are August and September, where special fares are put on to spur impulse travel. Also look out for other year-round promotions.

Special fares may also apply to destinations that an airline is trying to promote. For example, Jetstar Asia offered one-way flights to Phnom Penh and Siem Reap at $8 in May and June.

TRAVEL LIGHT

For passengers laden with golf bags, crates of fruit, or furniture, bear in mind you will have to pay extra. Tiger Airways charges $20 per piece for golf bags, surf boards, prams and other bulky items. Baggage allowance is one bag per passenger, capped at 15kg. Anything heavier is charged at $7.50 per kg.

Jetstar Asia's baggage allowance is 20kg. Excess luggage varies from country to country, ranging from $5 per kg for Bangkok, Phuket and Phnom Penh, to $12 per kg for Yangon.

TOP UP THE TAXES

If you are travelling on Tiger Airways, you pay less in passenger charges. As the airline operates out of the no-frills Budget Terminal, each traveller pays a passenger service charge (PSC) of $7 and passenger security service charge (PSSC) of $6 each.

At Changi Terminals 1 and 2, the PSC is $15 and the PSSC $6.

However, overall taxes vary according to the airport you are headed to. For example, Singapore's Changi Airport charges fuel, insurance and airport tax and Hong Kong levies charges for fuel, insurance, airport and network, security and departure tax.

Also, depending on what your airline charges for security and fuel taxes, the total will vary. Budget airlines do not necessarily charge less in taxes.

For example, Jetstar Asia, which flies out of Changi Terminal 1, charges a total of $106 in taxes for its Hong Kong flights. Cathay Pacific, which operates out of the same terminal, charges $92.

But for most destinations, the budget airlines tax you less. For example, a Singapore Airlines flight to Bangkok sets you back $103 in taxes, compared to $92.25 on Tiger Airways.

A Qantas ticket to Darwin would have a tax component of $325, compared to Tiger Airways' $298. Jetstar Asia passengers on its flight to Bangalore pay $175 in taxes, compared to $236 on Singapore Airlines.

KANNAN CHANDRAN

kannanc@sph.com.sg
Copyright © 2006 Singapore Press Holdings. All rights reserved.

Business Times - 19 Jul 2006

Cebu Pacific to fly into S'pore budget terminal

SINGAPORE - Manila's Cebu Pacific Air will resume flights to Singapore in August and become the second carrier to use the city-state's new Budget Terminal, aviation authorities said on Wednesday. It will offer a daily service between Singapore and Manila.

'Cebu Pacific's decision to operate from the simple and functional budget terminal will suit the airline's business model better as it will benefit from cost savings resulting from the terminal's low cost operating environment,' said director-general of civil aviation from the Civil Aviation Authority of Singapore (CAAS) Wong Woon Liong.

http://business-times.asiaone.com/mnt/media/image/launched/2006-07-19/cebupacific.jpg

Cebu Pacific will be up against two low-cost carriers serving the Singapore-Manila route - Singapore-based Jetstar and Tiger Airways, a subsidiary of Singapore Airlines. The carrier, the country's second largest after Philippine Airlines with a domestic market share of more than 40 per cent, also said it will offer promotional fares to Singapore to mark its re-entry starting Aug 31.

The airline, which now has 17 domestic routes and flies to international destinations such as Hong Kong and Seoul, said in a statement it would resume the service after steady growth in traffic between Singapore and Manila since 2003. Nearly 320,000 Filipinos visited Singapore last year, a 30 per cent rise from 2004, it said.

The Philippine carrier, controlled by the family of tycoon John Gokongwei, suspended the loss-making route to Singapore in 2003 barely three months after its launch as demand for travel was slashed due to the Sars outbreak. -- REUTERS, AFP

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

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.

Press release from the tiger airways website.....:yes:

Press Release
Tiger Airways launches Chinese website

More convenience for customers from fast growing South China market

SINGAPORE, 7 August 2006. Tiger Airways, Singapore's only low fare airline, has launched its Chinese language website in response to overwhelming demand from China customers for more information on its China - Singapore flights and other routes.

With the launch, Chinese language users will be able to obtain details of Tiger Airways flights and promotions in Chinese on Tiger Airways website www.tigerairways.com/cn. Booking is done online with payment through China international credit cards. Tiger Airways is also reviewing other ways to make it more convenient for travelers from Southern China to travel with the airline and will be announcing more details soon.

"Tiger Airways has enjoyed phenomenal growth from the Chinese market since launching our Singapore-China routes in April this year and it is timely to launch this website. To celebrate the launch of the website we intend to announce several exciting promotional offers in the coming weeks. For example, we are offering fares starting from as low as RMB 208 (SGD39.98) for one way flights from China to Singapore until end October. So make sure you visit the website www.tigerairways.com/cn regularly to obtain the latest updates," said Tiger Airways Chief Commercial and Marketing Officer, Rosalynn Tay.

Tay advised Chinese customers to book early and to do it on line if they want to get the best deals. Tiger Airways fares are structured on a tiered basis and prices go up according to demand and supply. So fares are lower if customers book early as more seats are available but move up when more seats get booked. Customers should also travel on weekdays and non-peak periods if they can to enjoy a better deal.

Tay also encouraged Chinese travelers to look at flying to other Tiger Airways destinations beyond the China-Singapore route to enjoy the best travel deals. Tiger Airways currently offers fantastic low fares from Singapore to its other destinations in the Asia-Pacific region, including Australia and Thailand. Details of flight schedules and fares as well as bookings for travel can be made at www.tigerairways.com/cn.

Tiger Airways is Singapore's largest and most popular low fare airline, serving seven countries across Asia-Pacific (Singapore, Thailand, Vietnam, China, the Philippines, Australia and Indonesia). This was confirmed in May 2006 when Tiger Airways was the only Low Cost Carrier to win an award from the Civil Aviation Authority of Singapore (CAAS) as a top 10 airlines at Changi Airport by passenger carriage in 2005.

In April 2006 Tiger Airways increased its fleet to six new Airbus A320 aircraft to serve new flight services between Singapore and Guangzhou, Haikou and Shenzhen. Tiger Airways is expected to take delivery of three brand new Airbus A320 aircraft at the end of this year and will have the largest fleet among Singapore-based low cost carriers. Another three A320 is expected to join the fleet in 2007.

Tiger Airways has carried the most number of passengers amongst budget airlines in Singapore and is expecting to carry its 1.5 Millionth passenger soon. The airline is well on target to hit its second millionth passenger by this year end or possibly sooner.

About Tiger Airways

Tiger Airways is Singapore's only low fare airline. Established in December 2003, Tiger Airways took to the air on September 15, 2004. It is the choice of savvy travelers who want safe and reliable point-to-point air travel at highly affordable fares. Tiger Airways now flies to five cities in Thailand, two cities in Vietnam (Ho Chi Minh City and Hanoi), four cities in China (Macau SAR, Guangzhou, Haikou and Shenzhen), Indonesia (Padang), the Philippines (Clark-Manila), Australia (Darwin) and Singapore.

For more information about Tiger Airways, visit www.tigerairways.com

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.

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.

2 Oct 2006
Tiger Airways plans to set up 5 bases

Budget carrier, Tiger Airways, plans to set up as many as five bases over the next two or three years.

Its Chief Executive, Tony Davis, told Bloomberg this in an interview.

"What we are looking to do is really to take the company be a Pan-Asian, with bases around the region. So we are looking at a 4 to 5 bases over the next 2 to 3 years and us that ability to cover the whole of the region."

Last week, Tiger Airways announced its first overseas operation through its extensive marketing agreement with Philippine carrier, Southeast Asian Airlines or Seair.

Mr Davis is seeking to emulate the success of discount airlines such as Ryanair Holdings.

He is setting up operations overseas to better compete with its rivals and tap the strong travel demand in the region.

Copyright © 2006 MediaCorp Radio New Media Development

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

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

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.