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Old April 21st, 2005, 01:41 PM   #861
babystan03
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21 April 2005

Asia presents substantial opportunities for low cost carriers: Tiger Airways

SINGAPORE: The competition in the airline industry may be intensifying but Tiger Airways believes that there are substantial opportunities for low cost carriers in the region.

Its chief executive Tony Davis made that comment in an interview with the Center for Asia Pacific Aviation.

He views Asia as an emerging market in which budget airlines can attract customers who traditionally have not had the option to travel.

But Mr Davis noted that consolidation is inevitable - given rising oil prices and pilot recruitment pressure.

Tiger was launched in August last year - and is one of three low cost carriers currently based in Singapore. - CNA /dt

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Old April 23rd, 2005, 06:52 AM   #862
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Singapore Based Low Cost Carrier Destinations Summary
- Updated Saturday, 23 April 2005

Valuair - Way Smarter

6 International Destinations From Singapore
- Chengdu, China
- Xiamen, China (From 25 April 2005)
- Hong Kong, China
- Bangkok, Thailand
- Jakarta, Indonesia
- Perth, Australia

Tiger Airways

9 International Destinations From Singapore
- Macau, China
- Hanoi, Vietnam
- Chiangmai, Thailand
- Manila, Phillippines
- Bangkok, Thailand
- Ho Chi Minh City, Vietnam
- Phuket, Thailand
- Hat Yai, Thailand
- Padang, Indonesia (From 19 May 2005)

Jetstar Asia Airways - What's Stopping You?

4 International Destinations From Singapore
- Taipei, Taiwan
- Manila, Phillippines
- Hong Kong, China
- Bangkok, Thailand
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Old April 23rd, 2005, 10:40 AM   #863
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Wow..thks for the summary. Suddenly Tiger looks bigger then it was not too long ago....it had only 3 destinations to Thailand then!
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Old April 23rd, 2005, 11:44 AM   #864
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Quote:
Originally Posted by huaiwei
Wow..thks for the summary. Suddenly Tiger looks bigger then it was not too long ago....it had only 3 destinations to Thailand then!
Yeah loh....not Jetstar is lagging behind......
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Old April 23rd, 2005, 11:58 AM   #865
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I have the feeling that Tiger airways will replace all SilkAir destination in Indonesia. do you think?

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Old April 23rd, 2005, 02:07 PM   #866
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Please ''cut and paste'' my previous post onto a new post and edit the information as and when new destinations are added (together with their inaugural flight date) so that the list is updated and complete. Its easier for people to know more about Singapore's budget aviation scene without the need to read long news articles or surf many many websites.

Though Jetstar Asia is lagging behind, so far they offer the most ''well known'' destinations to travellers, meaning they actually bring me to the places which most people would go to, capital cities (Hong Kong, Bangkok, Taipei, Manila) and not like Hanoi or Padang, no offence intended. But, this is exactly why they are lagging behind. They should explore more ''unknown'' places.

Where does Silkair come into the picture. It doesn't brand itself as a mid frills airline like Valuair and yet the two are so similar, almost identical. Yet it is so isn't a full service nor budget carrier. What is it? To me Silkair is a mid frills airline. Hmm, SIA should just brand Silkair as mid frills, not regional arm of SIA, since Tiger Airways does the same job too. At least it adds a psychological sense of completeness to everything. And it seems like there's some duplication. Good thing is that SIA has got the mid frills, full service, and no frills sector covered by an airline belonging to them. The bad thing is that the is the market big enough for all 3?

Anyone noticed that SIA's affiliates often have success stories while competitors are like portrayed as being weak etc. Is CAAS really being protectionist? I would definitely not want to believe that but the recent bad publicity is saying the exact opposite.
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Old April 23rd, 2005, 09:13 PM   #867
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what kind of bad publicity? I dont think JSA and Valueair are exactly getting that?
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Old April 23rd, 2005, 11:02 PM   #868
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Most full-service airlines, especially in europe and the US, have a lot of headaches when it comes to narrowbody fleets. In most cases, the short-haul routes are pretty unprofitable, so the long-haul operations end up subsidizing the short-haul. SIA avoided this pretty well by making an independent narrowbody airline that makes profit on its own. Silkair is profitable, right? After all, before the LCCs, it had a virtual monopoly on a lot of destinations, making their fares ridiculously exorbitant. Silkair's existence also seems to act as a feeder for SIA, and it enables SIA to expand its route network without hurting the SIA brand by offering less service on a narrowbody. Now, with the LCCs in the picture, it'll be interesting what SilkAir will turn into
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Old April 24th, 2005, 04:14 PM   #869
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Silkair is pretty much profitable, their passengers are mostly outbound SIA passengers going to cities that doesnt have SIA direct flights .

The most profitable route i would say are Singapore - Medan and Singapore - cebu/davao.

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Old April 25th, 2005, 03:40 PM   #870
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5 dollars is the ballpark price for digital video terminals on airlines. Jetsgo offered something similar before. However, since Ryanair's flights are very short, an entertainment system is not very feasible since why would anyone pay the amount for an hour-long flight?

Ryanair to Pay $3.57B for 70 Boeing Jets
Fri Apr 22, 5:49 PM ET

NEW YORK (AP) - Irish budget airline Ryanair Holdings PLC will pay $3.57 billion for the 70 Boeing Co. airplanes it has ordered, a large discount on the listed price, the carrier said Friday.

The price for each 737-800 airplane will be about $51 million, including the engines and some optional features, Dublin-based Ryanair said in a regulatory filing.

Boeing's list price for that model, according to the Boeing Web site, is a range of $61.5 million to $69.5 million. Boeing spokesman Todd Blecher said it's not unusual for the manufacturer to offer discounts for large orders.

Ryanair will also pay around $900,000 per aircraft for equipment from third parties that Boeing will install.

The deal includes a clause that would boost the price of the airplanes, scheduled for delivery between 2006 and 2011, according to a formula based on U.S. employment costs and producer prices.

Ryanair said it will finance the new airplanes through bank loans, which are guaranteed by the Export-Import Bank of the United States, a federal agency that helps finance the export of U.S. goods to foreign countries.

U.S. shares of Ryanair fell 57 cents, or 1.4 percent, to close at $41.58 on the Nasdaq Stock Market.

Ryanair, with revenue of $1.4 billion for the year ended March 31, has a fleet of about 30 Boeing 737s and makes 1,250 flights a week. It flies nearly 6 million people on 45 routes covering Ireland, France, Belgium, Sweden, Norway, Denmark, Germany and the United Kingdom.
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Old April 25th, 2005, 10:40 PM   #871
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easyJet not yet decided on Central Europe hub - claim
25 April 2005
Airline Industry Information

Low-cost airline easyJet has dismissed a story reported in the Hungarian press that it was making Budapest's Ferihegy Terminal 1 its headquarters for Central European flights.

easyJet had not decided yet, and its decision depends on the landing and handling fees to be charged by Budapest Airport, said an account manager for MMD Communications, which represents easyJet, quoted by The Budapest Sun.
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Old April 26th, 2005, 01:30 AM   #872
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April 26, 2005

Budget airlines target China, India
Low-cost carriers in S-E Asia are moving fast to tap great numbers of potential travellers

SINGAPORE-based Valuair has launched flights to a second destination in China, while low-cost carrier Thai AirAsia has embarked on its maiden flight into mainland China, with an inaugural flight from Bangkok to Xiamen this week.

The new routes underscore where the region's budget airline industry is going.

After mushrooming across South-east Asia in the past year, discount carriers are spreading to tap great numbers of potential passengers in China and India.

There, low-cost airlines based in Singapore, Malaysia and Thailand will compete with domestic budget carriers cropping up in both countries.

Some analysts believe carriers that do not have a China-oriented business strategy should formulate one soon, or risk missing the potentially lucrative market completely.

Currently only 5.8 per cent of the Chinese people travel but the rising disposable income and the emerging urban middle class should have profound effects, with tourism forecast to grow up to 10 per cent annually, says a report in the Bangkok Post.

About 100 million passengers travel by air on domestic routes and 20 million on international flights a year in China, according to current industry estimates.

Both Boeing and Airbus, the world's two largest aircraft producers, agree that China will undoubtedly be the prime driver of growth in the world's aviation industry.

They forecast that the domestic passenger traffic and air cargo alone are set to increase by an average of about 8 per cent and 10 per cent a year for the next 20 years.

'China is definitely pulling Asia-Pacific's air traffic along,' says Mr Andrew Whittaker, vice-president for transport in Asia Pacific for Unisys, the US-based information technology service provider.

'So all of the carriers, both passengers and cargo airlines, need to have a Chinese strategy if they want to continue to survive in the Asia-Pacific marketplace.'

Many international carriers have already begun to tap the Chinese opportunities, particularly the 17 major international airlines based in Asia-Pacific.

Now the regional budget airlines are showing interest.

Last week, Valuair unveiled plans to start four-weekly flights to Xiamen.

'Xiamen is one of China's first special economic zones and is now a thriving city with a brand new airport - the fourth largest in China,' said Valuair chairman Lim Chin Beng, according to The Business Times.

Return tickets between Singapore and Xiamen will be priced at $360, a fraction of the fares charged by full service network airlines.

Malaysia's AirAsia too is upbeat.

AirAsia's next big push is China, the airline's CEO, Mr Tony Fernandes, told The Edge newspaper in Malaysia.

'We are already operating to Xiamen... we want to be in Guangzhou, Shenzhen, Kunming, Chongqing, Guilin, Nanning, Wuhan and secondary cities like that over the next few months.'

India's government has also opened its aviation sector to competition.

Already the success of India's first discount airline, Air Deccan, has lured new entrants.

Air-India, a national carrier, launched its low-cost subsidiary Air-India Express this year with routes from Delhi, Mumbai, Cochin and Trivandrum to the Persian Gulf.

In May, two more budget carriers - Kingfisher Airlines and SpiceJet - plan to start operations.

For the cost-conscious traveller, this expansion is creating a network of cheap international connections that make flying around Asia less costly than ever.

'It's happened extraordinarily quickly,' said Mr Peter Harbison, managing director of the Centre for Asia-Pacific Aviation in Sydney, according to a report in the New York Times.

Only a year ago, he said, 'there was a majority feeling that these carriers would not survive'.

Back then, many industry observers said the model used by Ryanair that has been followed by other budget carriers in Europe and in the United States would not work across a region as diverse as Asia.

The population was too poor, they argued, and the list of potential routes was limited by thorny international agreements.

They were wrong, says the report.

Copyright © 2005 Singapore Press Holdings. All rights reserved.
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Old April 27th, 2005, 09:45 AM   #873
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To be honest, I dont noe how long their pricing model can last. Prices go up when the flight time is closeby, and when that happens, they actually seem to cost as much or even higher then that of full carriers. Any logical travellor would switch to the full carrier liao what!
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Old April 28th, 2005, 12:11 AM   #874
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Ryanair routes from city soar to 13
27 April 2005
Liverpool Echo

IRISH budget carrier Ryanair has introduced three more routes from Liverpool John Lennon airport A special guest touched down yesterday to mark the occasion. The 800th Boeing 737-800 aircraft to leave the US plane-maker"s Seattle factory, in special Ryanair livery, flew the Liverpool to Pisa, Cork and Granada routes.

Next Tuesday, the Dublinbased airline will start the final new route of the 11 announced last November, from Liverpool to Shannon. It will then operate 13 routes from Liverpool.

About 1.5m extra passengers are expected to use the11 new routes this year, taking the airport"s total towards the 5m mark.

Ryanair European sales and marketing chief, Sinead Finn, said: "Routes to Cork, Pisa and Granada have been a roaring success with over 75,000 bookings
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Old April 28th, 2005, 12:39 PM   #875
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28 Apr 05

Tiger Air seeking flights to India, China

(JAKARTA) Tiger Airways Pte, Singapore Airlines Ltd's budget carrier, is seeking approval to start flights to India and China to tap growing travel demand in the world's two most populous nations, chief executive Tony Davis said.

Tiger Airways, which operates four Airbus A320 planes, operates flights to 10 cities in six countries including Singapore. The carrier will begin flying to Indonesia next month with a flight to Padang, the capital of West Sumatra province.

'The airline has applied for rights to fly to India,' Mr Davis told reporters yesterday in Jakarta. It is also looking at destinations in China. Tiger Airways plans to expand its fleet in the next 12 months to support more routes, he added.

Budget carriers such as Tiger Airways, Jetstar Asia and Valuair Ltd are expanding fleets and flying to more destinations in South-east Asia. Last year, low-cost airlines accounted for 7 per cent of passenger flights at Singapore's Changi Airport.

Passenger traffic in the region is forecast to grow an average 6.1 per cent a year until 2023, compared with a global average of 5.2 per cent, according to Boeing Co. - Bloomberg
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Old April 28th, 2005, 06:16 PM   #876
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Haha, hes in Jakarta, I guess its just a matter of time before he get rights to Jakarta and Surabaya. if that happens, its a blow to jetstar who has been unactive so far in negotiating with the transport minister.

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Old April 28th, 2005, 06:37 PM   #877
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28 April 2005

Tiger Airways may team up with other carriers to spread its wings
By Loh Kim Chin, Channel NewsAsia

SINGAPORE: Tiger Airways is mulling joint ventures with Asian carriers to speed up its regional market penetration.

The joint ventures will allow the budget carrier to get around regulatory restrictions on the operations of foreign carriers.

Tiger Airway's Chief Executive Officer Tony Davis also said this route would allow the airline to fast track its regional network development.

He added that the carrier had been approached by a number of airlines and potential partners in the region.

He revealed that the governments of Indonesia and Singapore were in talks to resolve the dispute over landing rights.

Earlier this year, Indonesia banned foreign low-cost carriers from flying to four major cities - Jakarta, Bali, Medan and Surabaya - in a bid to protect its national airlines.

The move also affected plans by the Indonesian budget carrier, AWAIR, to fly to Singapore. - CNA/ir

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Old April 28th, 2005, 07:33 PM   #878
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Quote:
Originally Posted by David-80
Haha, hes in Jakarta, I guess its just a matter of time before he get rights to Jakarta and Surabaya. if that happens, its a blow to jetstar who has been unactive so far in negotiating with the transport minister.

cheers
Maybe coz Indoensia dosent like Australia?
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Old April 29th, 2005, 05:27 PM   #879
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Hehe I dont think thats the case lah! I think its because jetstarasia has no more motivation to negotiate. Because Indonesia already received proposal from Virgin blue Australia to get rights in Indonesia. Australian airlines (Qantas low cost subsdiary for asia) is also operating in Bali. So i dont think thats the problem.

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Old April 30th, 2005, 01:25 PM   #880
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Business Times - 30 Apr 2005

Big jump in March tourists; LCCs seen providing a boost


MARCH yielded a bumper crop of tourists for Singapore. A total of 732,359 visitors arrived in Singapore, a figure 16.9 per cent up on March 2004.

It was easily the highest year-on-year growth so far this year, far outstripping February's 6 per cent growth and January's 2.3 per cent.

The influx came largely from Indonesia, which represented the top visitor-generating market last month, with 151,000 arrivals. The other top five markets were the UK, China, Japan and Malaysia. Together, these five accounted for 49 per cent of total visitor arrivals last month.

Another factor driving the good results was the double-digit growth in arrivals from some of the top 13 visitor-generating markets. They were Hong Kong, which rose 67 per cent; India, with a 50 per cent increase; Thailand, rising 34 per cent; and the Philippines, 28 per cent up.

Visitor arrivals from Singapore's other top markets - Japan and China - slid by 2 per cent each. The South Koreans are also giving Singapore a miss - visits from there fell by 9 per cent.

It is not just more visitors - each one is spending more. Singapore had an estimated $867 million in tourism receipts last month, a 19 per cent increase over March last year.

The higher visitor numbers meant good news on the hotel occupancy front too. Room revenue for Singapore hotels rose by 17.6 per cent to $100 million last month over March 2004. The increase was powered by a rise in the average occupancy rate, which was about 84 per cent last month, and an increase in the average room rate by 7.4 per cent to $130.

The better figures may also have been fuelled by low-cost carriers (LCCs). Tiger Airways, for instance, is now flying more people into Singapore than it does out. Operating to new destinations, the SIA associate said yesterday it has carried 1,000 more inbound travellers than outbound travellers this month.

'This marks a milestone as it means that our new routes from Vietnam, Macau and the Philippines are attracting lots of visitors to Singapore,' Tiger's CEO Tony Davis said. 'What's also interesting is that the number of inbound tickets we've sold to date for June and July exceeds outbound tickets by 20-50 per cent.'

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