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Old July 18th, 2004, 11:26 AM   #261
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Old July 21st, 2004, 10:15 AM   #262
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JULY 21, 2004
Tiger Airways launches with first plane

SINGAPORE - New budget airline Tiger Airways - an offshoot of national carrier Singapore Airlines - entered the already crowded no-frills market in South-east Asia on Wednesday, saying it has a business plan to eventually 'dominate the region'.

The airline received its first aircraft, an Airbus SAS A320, at Changi Airport today.

The launch gave scant details on its business plan, with chief executive Patrick Gan saying only that the carrier intends to be profitable in a year and will order 12 new planes by 2006.

He said the carrier would be fully operational by the end of this year and intends to fly to 'between five to 10 destinations' that are within a 4-hour flight from Singapore.

He declined to divulge more when meeting with reporters, saying he didn't want to tip his hand to competitors.

'We're confident in our model and we know we'll succeed,' he said. 'The low-cost carrier business is a tough business. ... Eventually it will be a survival of the fittest.'

Tiger, which is also partly owned by Irish budget carrier Ryanair, is the second no-frills carrier to come out of the city-state after Valuair's May start.

Another yet-to-be-named carrier formed by Australia's Qantas is expected to fly by the end of 2004 - joining a host of other budget carriers already flying over South-east Asian skies such as Malaysia's AirAsia, Thailand's Nok Air, Indonesia's Lion Air and Australia's Jetstar.

But Mr Gan said Tiger had the backing and 'unrivaled' expertise of Singapore Airlines and Ryanair, adding that in the interim, it had seconded several pilots from the national carrier.

'We have a long-term business plan to dominate the region,' he said, adding that they could offer fares up to 40 per cent lower than full service airlines.

He admitted Tiger could take away some of Singapore Airlines' business because of its much cheaper fares. Analysts say Tiger was formed partly in response to competition from airlines like AirAsia, which had been eating into margins on full-service airlines.

On Tuesday, Singapore said it would build a S$45 million (US$26 million) budget terminal specifically for low-cost airlines - which Tiger has already committed to using when it is completed in 2006. -- AP

Copyright @ 2004 Singapore Press Holdings. All rights reserved.
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Old July 21st, 2004, 10:27 AM   #263
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Finally there is some news about Tiger!

I am still wondering if Qantas is serious about their budget setup thou.
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Old July 21st, 2004, 11:07 AM   #264
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^
If Qantas is serious, expect to see news of the new start-up within this two months(as they also mentioned that they are starting at the end of the year)
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Old July 21st, 2004, 12:07 PM   #265
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A picture of Tiger airways from Straits Times

http://straitstimes.asia1.com.sg/lat...62638,00.html?



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Old July 21st, 2004, 12:22 PM   #266
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Great ! more flights in SIN JKT routes!

anyway, one is wondering...what the uniform looks like? it should looks sexy with that stewardess girls.

cheers
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Old July 21st, 2004, 12:28 PM   #267
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Geez....really hate this Tiger branding....the livery didnt change my mind!
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Old July 21st, 2004, 02:06 PM   #268
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New aircraft for Lion air, their 2nd B-737-400 in changi upon delivery to join their fleets.

http://www.airliners.net/open.file/618630/M/

they aim to get 20 more 737-400s

cheers
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Old July 21st, 2004, 02:11 PM   #269
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^
I think I saw Lion Air's B737 at changi.......

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Old July 21st, 2004, 02:17 PM   #270
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babystan whats that registration number, i cant see clear from here. thanks buddy

cheers
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Old July 21st, 2004, 02:19 PM   #271
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Quote:
Originally Posted by David-80
babystan whats that registration number, i cant see clear from here. thanks buddy

cheers
PK LIF.......
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Old July 21st, 2004, 02:32 PM   #272
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More on Tiger Airways......

Time is GMT + 8 hours
Posted: 21 July 2004 1911 hrs

Tiger Airways takes delivery of first jet
By Chua Chin Chye, Channel NewsAsia

SINGAPORE : Tiger Airways foresees a shakeout among Singapore's budget airlines that will leave only one or two survivors, and believes it will come out tops due to its single-minded focus on cost efficiency and deep pockets.

Singapore's latest no-frills carrier took delivery of its first plane -- an Airbus 320 -- on Wednesday.

And the budget carrier showed not only its stripes but also its predatory instincts -- it wants to be not just king of the jungle, but also to clear out the jungle as well.

"There will be fallout. You can't have four or five low-cost carriers operating in the same market. History will tell you, at the end of the day, there will be one, there may be two, but there won't be five," said William Franke, chairman of Tiger Airways.

"If there's greater demand, we want to fill that demand. We don't want you filling that demand. We want to fill it ourselves," he said.

Tiger Airways chief executive Patrick Gan said, "Definitely, at the end of the day, with so many LCCs, some will survive, some will not. There will be consolidation. What I can tell you is that Tiger Airways is very poised to survive. We know that basically, we will come out tops."

Tiger Airways is banking on its pedigree; its shareholders are Singapore Airlines, Indigo Partners, Irelandia Investments and Temasek Holdings -- all with deep pockets, and expertise.

In fact, Tiger claims it is Singapore's true low-cost carrier.

"We will compete primarily on cost. The lowest cost producer is the one that dictates market price. We want to lead the market. We don't want to be the follower," Mr Gan said.

And the emphasis on cost is not just skin-deep.

"If you take a look at our staff, everyone of us has got more than one function. We multi-task, and we look at all our operations in terms of how we can operate in a more efficient manner, rather than a round-about manner. This is basically the Ryanair model," said Mr Gan.

Tiger will come face to face with rivals like Valuair, AirAsia and upcoming JetStar.

And as tigers come, this one is also ready to pounce.

In fact, Tiger Airways wants to have 10 to 12 aircraft in two years. All will be new Airbus 320 jets, for lower maintenance.

The budget carrier hopes to break even within a year and foresees passenger volume growing 25 to 30 percent each year.

Flights are to start in the fourth quarter, to destinations within a four-hour radius.

Tiger hopes to sell 80 percent of its tickets through the Internet -- but at up to 40 percent lower than main carriers, and definitely lower than its no-frills rivals.

It will operate out of Terminal 1, but will switch to the low-cost carrier terminal when it is completed in 2006. - CNA

Copyright © 2004 MCN International Pte Ltd
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Old July 22nd, 2004, 03:19 AM   #273
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JULY 22, 2004

Tiger ready to take on rivals

Undaunted by the crowd of players or prospect of a price war, budget airline expects to break even within a year

By Karamjit Kaur


TIGER Airways took delivery of its first plane yesterday - and warned its budget competitors that it is aiming to break even within a year and 'dominate the region'.

The carrier, backed by Singapore Airlines (SIA), plans to offer five to 10 destinations by year-end and have a 12-plane fleet by 2006.

Its first 180-seater Airbus 320 landed at Changi Airport's Terminal 1 yesterday from Toulouse, France.

Chief executive Patrick Gan then met reporters in a confident mood, estimating that average fares would be about 40 per cent lower than the cheapest ticket on a full-service airline.

After Valuair, Singapore's first budget airline, took off in May, big players like SIA and Cathay Pacific triggered sporadic price wars.

Mr Gan said travellers can expect 'a reaction from the other carriers' when Tiger starts flying in the last quarter of the year.

Though he would not say how low its fares might go, he said the airline 'will be prepared to meet the challenges'.

SIA launched a $150-per-head promotion last month, for two passengers flying together to Jakarta or Bangkok. A Valuair ticket costs $199. To Hong Kong, SIA's lowest fare is $300, Valuair's is $350.

Tiger's other shareholders are Singapore investment agency Temasek Holdings, the founders of Irish low-cost airline Ryanair, and United States-based marketing and business strategy consultants Indigo Partners.

Like the predator it is named after, Mr Gan said Tiger will be 'aggressive and focused when hunting, or when challenged'.

Undaunted by Tiger's arrival, Valuair executive director Jimmy Lau stressed that his airline did not see itself in competition with Tiger as 'our model is different'.

Valuair, set up by SIA veteran Lim Chin Beng, is 'targeting a different segment of the market by offering more legroom, meals on board, assigned seating and extra baggage allowance'.

Other budget carriers in the region include Malaysia's AirAsia, Thailand's Nok Air, Indonesia's Lion Air and Australia's Jetstar.

Another airline to be based here is a yet-to-be-named one backed by Australia's Qantas.

On Tiger's confident front, DBS Vickers' aviation analyst Chris Sanda said: 'Tiger Airways is lagging behind airlines like AirAsia which have been around for a few years... it needs to gamble big to win big and expand quickly to make up for lost time.'

Cost discipline will be key.

Tiger will rely mainly on the Net to sell seats and passengers must pay for food and drinks. It expects passenger load to grow by 25 to 35 per cent annually over five years.

Said Mr Gan: 'There is a big hunger for low-fare travel... We intend to break even in the first year.'
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Old July 22nd, 2004, 05:20 AM   #274
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Here's Tiger Airways on the Chinese press in Singapore(Lianhe Zaobao):

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Old July 22nd, 2004, 06:10 AM   #275
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This story was printed from TODAYonline

Upbeat Tiger leaps into low-fare fray

Carrier eyes profits in a year; analysts see it swallowing rival airlines

Thursday • July 22, 2004

Tay Tsen Waye
[email protected]

THE battle for the growing market of budget air travellers is heating up and newcomer Tiger Airways thinks it has what it takes to become the dominant player in Asia.

At a ceremony to take delivery of its first aircraft yesterday, the Singapore Airlines (SIA) affiliate — which is set to be the fourth low-cost carrier to fly out of Singapore — reiterated its forecast of becoming profitable in its first year of operations.

"Tiger is here to stay. We have all the expertise and resources from shareholders … and we've got a long-term business plan to grow and dominate the region," said chief executive officer Patrick Gan.

This optimistic outlook comes amid grim warnings that the crowded budget market is set for a major shakeout in the next two years, one that could see some 15 low-cost carriers in the region whittled down to one or two major players.

With Tiger Airways and a Qantas start-up, likely to be called Jetstar Asia, to take to the skies by the year-end in Singapore, it will bring to five the total number of airlines flying out of Changi.

Thai AirAsia, a joint-venture between Malaysia's AirAsia and Thailand's Shin Corp, Indonesia's Lion Air and local carrier Valuair already operate flights out of the Republic.

Consolidation is already evident in mature markets like Europe, where three budget airlines — out of a field of 60 — have gone belly up this year.

One aviation analyst told Today that five viable carriers flying out of Singapore is "probably an overkill".

"I suspect that numbers will have winnowed down to two within 12 months," said the analyst who declined to be named. He added that the shakeout could see Tiger Airway buying over rival budget carrier Valuair.

In the cut-throat budget market, key factors to survival would include low prices and deep pockets, analysts and industry players said.

"What the consumer wants is to get from point A to B at the lowest possible fare," said Tiger Airways chairman William Franke.

"What will happen for sure is that the stronger, well-capitalised players will be ones who will be better positioned to face competition," noted Mr Sean Lee from the Singapore Aircraft Leasing Enterprise, which has leased planes to Valuair.

Some are hedging their bets on AirAsia winning the economic air travel race.

"In every market, there can only be one low-cost leader," said one analyst. "AirAsia were the first to market and they are based in low-cost markets. So, Tiger Airways is already two laps behind."

But Tiger is confident that its business model and the pedigree of its shareholders — which include SIA, Temasek Holdings and the founder of Ireland's Ryanair — will see it through the highly competitive environment.

"If you look at who our parents are, that gives a lot of confidence to fly Tiger," said Mr Gan.

Buoyed by a strong regional demand for economic air travel, Tiger Airways also anticipates a 25 to 35-per-cent growth in passenger traffic in each of the next five years.

Mr Gan confirmed that Tiger Airways will fly by the last quarter of the year, if "not earlier", and expects to expand its fleet of 180-seater Airbus A320s to 12 by 2006 — at the rate of four each year.

The airline aims to eventually increase from one to four the number of daily flights to between five and 10 destinations, within a four-hour radius from Singapore.

Tiger Airways will offer "one of the lowest if not the lowest fares in the market" — an average 40-per-cent less than what full service carriers charge, Mr Gan said. But consumers will only see this after it shifts operations from Changi's Terminal 1 to the new low-cost terminal in early 2006, he added.

As for Valuair, the carrier's executive director Jimmy Lau warned against looking to Europe and America as a mirror of what will happen in Asia.

"In the west, the low-cost carriers fly mostly domestic sectors.

"Their Asian counterparts are more likely to fly international routes," he said.

Whatever happens, the growth in the number of budget carriers makes for an exciting time for consumers, said chairman of the Singapore chapter of the Pacific Asia Travel Association Wong Soon Hwa.

They will be spoilt for choice with cheap fares and may even be able to afford to travel up to four times a year on short trips, he told Today.

Analysts Today spoke to agreed that consumers have the most to gain from the mushrooming of low-cost airlines.

Said one aviation analyst: "There's no such thing as overcrowding. The winners are the consumers. So, the market has to decide who wins and who loses.

"The argument that budget airlines won't work because Asians like luxury is wrong. People don't like spending money foolishly."

Copyright MediaCorp Press Ltd. All rights reserved.
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Old July 22nd, 2004, 09:39 AM   #276
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Business Times - 22 Jul 2004

Tiger Airways' plan to undercut by 40% may spark fresh price war
SIA's low-cost carrier expects to take off by Q4

By DANIEL BUENAS

(SINGAPORE) Cut-price carrier Tiger Airways - the low-cost airline that SIA set up with local and foreign partners - could trigger a new air-fare price war by offering tickets 40 per cent cheaper than the big players.

Speaking to reporters yesterday at a ceremony to receive Tiger's first aircraft - a new 180-seat Airbus 320 - CEO Patrick Gan said the carrier will offer 'among the lowest, if not the lowest' fares in the market.

'I'm sure, because of competitiveness in the market, that there will be reactions from the other airlines,' he said. 'Whether this leads to a price war remains to be seen. We intend (our fares) to be 40 per cent below those of network carriers.'

Mr Gan said the company will target destinations within four hours' flying time of Singapore and expects to begin operations in the fourth quarter of this year or sooner.

Some industry watchers have said there are already signs of a price war. 'I think the price war has already begun, as we have already seen some pre-emptive moves by carriers,' said aviation analyst Peter Harbison, who heads the independent Centre for Asia Pacific Aviation. 'Whether a new round of price war develops depends very much on the routes (Tiger Airways) decides to operate.'

James Ginns, country manager for Cathay Pacific, echoed this view but said that whether Tiger becomes a direct competitor remains to be seen. 'Cathay Pacific is determined to continue... as a full service carrier on all the routes we serve (from) Singapore,' Mr Ginns said.

Jimmy Lau, executive director of budget airline Valuair, said Valuair doesn't see itself as being in direct competition with Tiger because the two are looking at different market segments. 'A price war is inevitable, but Tiger Airways is competing not just with Valuair,' he said.

In the same week that Valuair began flying the popular Singapore-Hong Kong route, Cathay Pacific, Singapore Airlines and United Airlines dropped their prices for a return Singapore-Hong Kong flight by more than half in some cases.

To offer aggressive prices, Tiger plans to exercise strict cost control. It will also use the Internet extensively, and expects to sell 80 per cent of tickets online. The rest will be sold through travel agents and call centres.

Tiger is the first operator to commit to the new Low Cost Carrier Terminal at Changi, which will cut passenger service charges and office rents by an estimated 20 per cent. The terminal, ready by early 2006, will initially be able to handle 2.7 million passengers a year.

Besides the aircraft it received yesterday, Tiger will take delivery of three more A320s this year and has indicated that it plans to have 10-12 aircraft in operation by 2006 to cater to an expected 25-30 per cent growth in annual passenger volume over the next five years.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.
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Old July 22nd, 2004, 11:07 AM   #277
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I honestly think Budget airlines have the coolest livery.
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Old July 22nd, 2004, 02:14 PM   #278
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Quote:
Originally Posted by FM 2258
I honestly think Budget airlines have the coolest livery.
But all them seem to have the same white background with a huge name of the airline plus .com behind it?
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"My Settlement of Singapore continues to thrive most wonderfully - it is all and everything I could wish and, if no untimely fate awaits it, promises to become the Emporium and the pride of the East" - Sir Thomas Stamford Raffles, 10th September 1820
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Old July 22nd, 2004, 03:46 PM   #279
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Quote:
Originally Posted by David-80
Taiwan already have UNI air, thats low cost airlines too. I once tried it from Bali to Taipei, using MD-90. But why bother to use no frills airlines if China airlines is also cheap and their service is quite good?

cheers
Actually UNI air, own by EVA air, is assumed as domestic carrier more than no-frills airlines based in Taiwan eventually although some sort of short-distance regional services being operated since concessionaire grant few year ago

Most domestic carrier ex. Far East Air, Formosa Air are being flied for some charter operation regionally even with AE, fully subsidiary by CI is runing some kind of interests among there

By the way, Taiwan open air policy is still not in diaphaneity enough even though an absolutist dominated over and lead to the market

That why CI is remained
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Old July 22nd, 2004, 10:29 PM   #280
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Hmm.....there is begining to have this problem if diffrentiating clearly between what is a "budget" and a "regular" airline. For eg, I notice how the sg press called Lion Air a budget airline, when they insisted they arent?
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