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Steve Creedy, Aviation writer
February 08, 2007

JETSTAR will add planes to its domestic fleet and expand operations in Western Australia amid speculation of a home-turf challenge from Singapore-backed Tiger Airways.
The Qantas offshoot has also targeted Korea and Taiwan as its next overseas destinations and has not ruled out more wide-body aircraft to service the routes before the arrival of its first Boeing 787s next year.

Tiger is expected to announce an Australian investment tomorrow, possibly involving a link with Perth-based Skywest Airlines that would see Tiger-branded A320s operating from the Western Australian capital.

Aviation sources speculated yesterday that Tiger would use Skywest to put Airbus A320s on the Australian market, amid rumours it was seeking to operate from Perth to the eastern states as well as on the "golden triangle" of Brisbane, Sydney and Melbourne.


If that proves correct, the airline will face more than a bigger Jetstar presence: Qantas is considering transferring more Boeing 747-300 jumbo jets to its Sydney-Perth Cityflyer service.

Singapore Airlines owns 49 per cent of Tiger and the Singapore Government's investment arm, Temasek Holdings, has 11 per cent. Other shareholders include US private investment firm Indigo Partners and Ryanair's Tony Ryan.

Jetstar chief executive Alan Joyce said his airline had been talking for some time with the Western Australian Government about basing aircraft there, and the expansion was unrelated to moves by Tiger.

"We know that we have to grow past 23 (aircraft) and the business is performing fairly well as the results tomorrow will show," Mr Joyce said.

"It's very clear that this year we've paused because of the long-haul growth.

"Short-haul has come back on the radar screen."

Mr Joyce said potential sources for new aircraft included three that were sub-let to Jetstar Asia (and due back at year's end) and second-hand planes.

He said opportunities in short-haul included growth on domestic routes and establishing international services.

"Perth is a very good example of that, where the A320 has the range to get to a lot of South-East Asian destinations," he said.

"And the third opportunity is really the Tasman.

"Our Christchurch operations are really going very, very well and domestic New Zealand and extra flying across the Tasman fall into a category we would want to look at as well."

Tiger last month announced it would start four flights a week from Perth to Singapore and chief executive Tony Davis is on the board of Skywest's parent, Advent Holdings.

Mr Davis last month told Singaporean media that some of his carrier's new A320s would go to an unnamed joint venture in the region.

He said the new venture would be more comprehensive than a previous agreement with Philippines-based carrier SEair, but that the Singaporean carrier was "not interested in investing lots of money to buy an existing airline".

Tiger provided SEair with two new A320 aircraft as well as technical and operational experience to operate Tiger-branded flights from a new hub at Clark Field in the Philippines.

http://www.theaustralian.news.com.au/story/0,20867,21189872-643,00.html
 

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The Qantas offshoot has also targeted Korea and Taiwan as its next overseas destinations and has not ruled out more wide-body aircraft to service the routes before the arrival of its first Boeing 787s next year.
God help them if they don't fly from Melbourne.
 

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http://www.theage.com.au/news/Business/Tiger-Airways-to-roar-in-domestic-market/2007/02/09/1170524266338.html

Tiger Airways to roar in domestic market

February 9, 2007 - 9:49AM

International low cost carrier Tiger Airways has announced its intention to enter the Australian domestic market and is seeking federal approval to do so.

Tiger Airways chief executive officer Tony Davis said the Singapore-based carrier would seek to aggressively compete with Qantas and Virgin Blue.

"Fares are too high in Australia. We see the opportunity to deliver consistently low fares on all our routes," Mr Davis said.

"Unlike others in this market, we won't be a low cost airline selling high fares. We'll be low cost and very low fare," he said

Tiger Airways said its business model would be based on the successful low cost European carrier, Ryanair, whose founders had a stake in Tiger.

"We certainly benefit from the experience and knowledge available to us through having the Ryan family as investors in Tiger Airways," Mr Davis said.

The company met with federal ministers in Canberra on Thursday and said it had already advised the Civil Aviation Safety Authority and the Foreign Investment Review Board of its plans.

Tiger already flies four times a week between Darwin and Singapore and will open a Perth-Singapore route on March 23.

___

weee?
 

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http://www.theage.com.au/news/business/airfare-war-looms-as-tiger-roars/2007/02/09/1170524266082.html?page=fullpage#contentSwap1

Airfare war looms as Tiger roars


Scott Rochfort
February 9, 2007 - 11:22AM

Singapore Airlines backed Tiger Airways has announced its plans on becoming Australia's third domestic airline by late 2007, sparking expectations it will trigger the mother of all low-cost domestic airfare wars.

In a sign Tiger is intent on smashing the cosy duopoly enjoyed between Virgin Blue and Qantas-Jetstar, its chief executive Tony Davis, said in a statement: "Fares are too high in Australia. We see the opportunity to deliver consistently low fares on all our routes.''

It is expected to take Tiger at least six months to receive an Air Operators Certificate to allow it to fly domestic flights.

Mr Davis told smh.com.au Tiger would offer "single digit'' one-way fares for its domestic launch.

The airline already offers $8 one-way fares from Darwin to Singapore and is currently advertising S$21.50 ($18) one way fares from Perth to Singapore for the launch of this service next month.

Out of its homebase in Singapore, there is a joke around aviation circles that the airline at times can offer a ticket for the same price as a six pack of Tiger beer. The company has offered S$1 fares in the past.

Tiger is yet to detail which cities it hopes to service. The airline is running a poll for Australians on its website, asking them where they would like to fly.

"We're looking at the whole country. Our objective is volume. It's not yield,'' said Mr Davis.

When asked to respond to Qantas deputy chief executive Peter Gregg's comments that Jetstar would continue to have the lowest costs for any Australian story, Mr Davis said: "Good Luck, good luck.''

"We are committed to having the lowest base in Australia and we are committed to having the lowest fares in Australia,'' he said.

"Our business model is about sustainable low fares. It's in our DNA, it's what we do.''

Tiger's business model is loosely based on the Europe's largest low-cost airline RyanAir, whose founders helped set up the airline. "Our business model is that we give consumers the lowest possible airfares.''

"Australians love our model and are supporting it already in their thousands. We are now keen to extend that model to the overpriced domestic market,'' said Mr Davis referring to the success of Tiger's services into Darwin.

The airline was established in 2004 by Singapore Airlines, the founders of Irelands's Ryanair and a private equity form Indigo Partners to tap into the fast growing South East Asian low cost airline market.

The airline hopes to fly five A320s domestically this year, and employ 1000 staff "both direct and indirect'' in Australia.

Tiger is also expected to test the nerves of unions, given signs it could seek individual workplace agreement. When asked if Tiger would seek to establish union endorsed enterprise bargaining agreement, Mr Davis said: "It's up to the employees.''

"Our staff are incentivised and we have remuneration packages that reward the high efficiency levels we get from our business.''

Tiger is already advertising for Australian-based pilots, cabin crew and engineers on its web site.

Unlike failed previous airline's such as OzJet and Compass, Tiger Airways has the backing of Singapore Airlines. Tiger insists it runs independently from Singapore Air - its 49 per cent shareholder.

The move echoes Qantas's attempts to crack the South East Asian airline market by establishing a Jetstar Asia franchise in Singapore in late 2004.

The 44.5 per cent Qantas-owned airline has racked up an estimated $100 million in losses with its other Singapore subsidiary Valuair, and has never appeared to be a serious threat to Singapore Air or Tiger Airways.

Qantas chief financial officer and Jetstar Asia chairman Peter Gregg rejected suggestions Qantas was about it quit its Singapore investment yesterday.

Mr Gregg also hit out at a report in the Herald which mentioned the large number of flight cancellations on the airline, and its ongoing losses.

"It is ridiculous to equate a number of operational cancellations - which are in the process of being resolved - and a claim about pilot shortages, with concerns over the airline's future, as some media reports today have done,'' he said. He said Jetstar Asia made its first profit in December.

He said January however was a quiet month.

theage.com.au
 

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http://www.theage.com.au/news/business/airfare-war-looms-as-tiger-roars/2007/02/09/1170524266082.html?page=fullpage#contentSwap1

Tiger's business model is loosely based on the Europe's largest low-cost airline RyanAir, whose founders helped set up the airline. "Our business model is that we give consumers the lowest possible airfares.''
Ryan Air model eh? Have fun lads with long queues, poor service, having to pay for everything liitle thing, including extra for having any luggage that can't be carried on by yourself and cramped planes. Guess I'll stick with Qantas to fly domestic next time I'm in Oz, as Virgin blows as well.
 

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They're destination poll still has Darwin on top :lol:

I voted for Sydney #1, Perth #2 from Melbourne.

Perth would be a better city to get routed through to Singapore IMO.
 

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Virgins fine. I mean unless your going to Perth it's probably a max of 2.5 hours. Oh dear you can't live without food or TV for 2.5 hours. For Domestic flights, as long as I get there and the employees provide a good service, I really don't care if I have to pay for food or any of that kind of stuff.
 

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They're destination poll still has Darwin on top :lol:

I voted for Sydney #1, Perth #2 from Melbourne.

Perth would be a better city to get routed through to Singapore IMO.
That's probably because they service Darwin currently, so therefore they are some of the few that actually know about the airline.

And it is equal to Brisbane!
 

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I wonder if they'd fly to Avalon? Do Jetstar lease the tin shed at Avalon or do they own it?

The other option would be the Rex/Other (5th) pier at the far south side of Tullamarine, no?
 

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I wonder if they'd fly to Avalon? Do Jetstar lease the tin shed at Avalon or do they own it?

The other option would be the Rex/Other (5th) pier at the far south side of Tullamarine, no?
Airlines can't own airports in Australia. Though there is some weird deal with Avalon whereby Jetstar seems to have exclusive use. So Tiger/Skywest will probably fly to Melbourne Airport.
 

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Melbourne is on top of the Tiger poll now.

If we do see the mother of all price wars I think it will be Virgin that will suffer the worst. With the backing of SIA I think Tiger's pockets would be deeper than Virgin's.
 

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Ipggi: The terminals, not the whole aerodrome - i.e Qantas owns the extension it made to the Tulla domestic terminal...?
 

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that's what I thought (wasn't absolutely sure though ;)).

Anyhow, like any sane person (people from Geelong are not sane :D), I'd prefer Tulla naturally.
 

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could be just the catalyst to kick start the de-lopsiding (or re-symetricalisationism (or something :D) of Tulamarine :D



plenty of space to extend, swing an extended new departures road on ramp aroun that watertower (much like what they did outside Q Domestic) and bob's yer aunty.
 

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Virgins fine. I mean unless your going to Perth it's probably a max of 2.5 hours. Oh dear you can't live without food or TV for 2.5 hours. For Domestic flights, as long as I get there and the employees provide a good service, I really don't care if I have to pay for food or any of that kind of stuff.
Usually I eat at the airport anyway so don't eat the food unless it's an international long haul. But what I mean is it's the whole experience KJ, maybe it won't be the same in Australia, but flying Ryan Air is just saps the joy out of flying anywhere, from the time that you have to rush to get seat on the plane because there's no assigned seating (pain in the ass if there are two or three of you travelling), to the chav's on welfare who use it to go for a weeks boozing down in Ibiza, to the fact you have to pay for milk as an extra when you ask for a cup of tea. The whole thing is very degrading! Took them once, because they had the only flights to from Venice out of London, but never again.

As for Virgin, I don't know about their domestic ops in Australia, but, and I know this puts me in the minority, but I hate Virgin Int'l as well. Three times, I've flown with them, each time in business, and three times the service and the planes have been completely rubiish. The only time I've ever been moved to write to tell an airline how shit they were, was after flying with Virgin. But, as I said I've not used them in Australia, so I guess I can't judge.
 
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