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PanAm_DC10
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Tiger Airways, New A319 Operator

Mon Jul 24, 2006 10:04 pm

Fair use excerpt

By Chan Sue Ling July 20 (Bloomberg) -- Tiger Airways Pte, the discount carrier partly owned by Singapore Airlines Ltd., said it's in ``advanced'' negotiations to set up at least one base outside Singapore this year, as it expands in the region.

``If we're going to get to be the same size as AirAsia or one of the other major carriers in the world, we need to be able to grow,'' Davis, 40, said. ``Operating bases around the region will give us a better potential to grow than being exclusively in Singapore,'' he said.

Tiger Airways, which competes with Malaysia's AirAsia Bhd. and Singapore based Jetstar Asia and Valuair Ltd., is continuing talks with Airbus SAS to exercise an option to buy eight planes, which may include the A319 model, Davis said.

A decision may be made in ``two to three months'' and the carrier may fund the purchase through sale and leaseback agreements, he said. The airline bought eight A320s last year with an option for eight more.


[END - Fair use excerpt http://www.bloomberg.com ]


Interesting that they wish to establish a second base outside of SIN and in addition are talking of procuring A319s. IIRC, they only have A320s at this stage. Can someone confirm as this would make them a new A319 operator, no?

One thing that strikes me is that they would need to spend and invest a lot more that just 8 options to take on AirAsia given their recent ambitions, not to count what Lion Air, amongst others, have planed for their operations in the region.

Regards, PanAm_DC10
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slz396
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RE: Tiger Airways, New A319 Operator

Mon Jul 24, 2006 10:11 pm

Quoting PanAm_DC10 (Thread starter):
One thing that strikes me is that they would need to spend and invest a lot more that just 8 options to take on AirAsia given their recent ambitions, not to count what Lion Air, amongst others, have planed for their operations in the region.

Indeed!

Given the fact they are definitely serious and not just talking out of their neck, is Tiger Airways yet another LCC to eventually place another 100+ A320 order somewhere next year of the year after that?
 
MCOflyer
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RE: Tiger Airways, New A319 Operator

Mon Jul 24, 2006 10:23 pm

I thought they already did operate the A319. I couldn't find any pics in the DB.

MCOflyer
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PanAm_DC10
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RE: Tiger Airways, New A319 Operator

Mon Jul 24, 2006 11:01 pm

Quoting MCOflyer (Reply 2):
I thought they already did operate the A319. I couldn't find any pics in the DB.

They are all A320s directly ordered from Airbus though I thought they may have leased some in the past. But it appears they may convert A320 options to A319s.

Can anyone confirm?

Thanks and Regards, PanAm_DC10
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A342
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RE: Tiger Airways, New A319 Operator

Mon Jul 24, 2006 11:08 pm

Quoting PanAm_DC10 (Thread starter):
the carrier may fund the purchase through sale and leaseback agreements

Why not lease them from the start ?
Exceptions confirm the rule.
 
HB-IWC
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RE: Tiger Airways, New A319 Operator

Mon Jul 24, 2006 11:21 pm

Tiger is currently only operating A320s, and the A319 might be either a coversion of the A320s or part of a new order. The change to A319 cannot point to anything else than cut throat competition and no need for the larger A320 to be deployed in certain markets.

As to the strategic partnership and the setting up of a base outside Singapore, it is likely that Tiger is talking about a tie up with an Indonesian LCC - Mandala has been rumoured to be in talks with Tiger - and the outside base would as such be Jakarta, although Surabaya and Denpasar-Bali are of course viable alternatives.
 
slz396
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RE: Tiger Airways, New A319 Operator

Mon Jul 24, 2006 11:33 pm

Quoting A342 (Reply 4):
Quoting PanAm_DC10 (Thread starter):
the carrier may fund the purchase through sale and leaseback agreements

Why not lease them from the start ?

I think they are talking about their current fleet of A320s....
 
GneissGuy
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RE: Tiger Airways, New A319 Operator

Tue Jul 25, 2006 12:04 am

Tiger current operates all brand new 320s. They are thinking of new destinations especially in India and China.
 
MCOflyer
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RE: Tiger Airways, New A319 Operator

Tue Jul 25, 2006 12:13 am

The A319 would be great for india and china. Especially with its range. I guess it depends on how much passengers they carry to and from these destinations.

MCOflyer
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GneissGuy
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RE: Tiger Airways, New A319 Operator

Tue Jul 25, 2006 12:23 am

Quoting PanAm_DC10 (Thread starter):
One thing that strikes me is that they would need to spend and invest a lot more that just 8 options to take on AirAsia given their recent ambitions, not to count what Lion Air, amongst others, have planed for their operations in the region.

Being a typically Singaporean business, i think they will take it slow and steady.

Quoting MCOflyer (Reply 2):
I thought they already did operate the A319. I couldn't find any pics in the DB.

Nope, they do not.

Quoting HB-IWC (Reply 5):
As to the strategic partnership and the setting up of a base outside Singapore, it is likely that Tiger is talking about a tie up with an Indonesian LCC - Mandala has been rumoured to be in talks with Tiger - and the outside base would as such be Jakarta, although Surabaya and Denpasar-Bali are of course viable alternatives.

This makes a lot of sense as the geographic nature of Indonesia's archipelagic islands makes it ideal of low cost aviation.
 
Airbus A380
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RE: Tiger Airways, New A319 Operator

Tue Jul 25, 2006 1:48 am

I've heard some time ago that it was Merpati who's in talks with Tiger (or was it SilkAir?). Brunei looks set to be Tiger's next destination, followed by another four by year's end. Tiger should also be looking to introducing more flights to other Indonesian cities.
 
HB-IWC
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RE: Tiger Airways, New A319 Operator

Tue Jul 25, 2006 2:27 am

Quoting Airbus A380 (Reply 10):
Tiger should also be looking to introducing more flights to other Indonesian cities.

There are tight restrictions on extra rights for foreign LCCs into Indonesia. The Indonesian Government is wary of the local LCCs' and even the local legacy carrier's losing out against in particular Singaporean LCCs that come with a far superior product and could take the market by storm. ValuAir has done remarkably well on the SIN-CGK route, and its success has been largely detrimental for Lion Air and Adam Air, and even Garuda.

Additional rights into Indonesia are awarded based on reciprocity and as Indonesian LCCs are not currently demanding party for additional rights into SIN - what would they do with extra flights, if they are not able to sell the seats and product currently on offer - it is unlikely that the likes of Tiger and Jetstar Asia would get their hands on additional frequencies into Indoland.

The only way then to circumvent these restrictions is via a tie up with some Indonesian company and the setting up of a local base a la Indonesian Air Asia. Adam Air, Mandala and even Merpati are likely candidates for a tie up with foreign companies, but these Indonesian companies come with so many problems and government-imposed restrictions that I find it hard to believe that a Singaporean LCC of the standing of Tiger would be foolish enough to pump money into an Indonesian venture with uncertain future.
 
GneissGuy
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RE: Tiger Airways, New A319 Operator

Tue Jul 25, 2006 1:30 pm

Quoting HB-IWC (Reply 11):
The only way then to circumvent these restrictions is via a tie up with some Indonesian company and the setting up of a local base a la Indonesian Air Asia. Adam Air, Mandala and even Merpati are likely candidates for a tie up with foreign companies, but these Indonesian companies come with so many problems and government-imposed restrictions that I find it hard to believe that a Singaporean LCC of the standing of Tiger would be foolish enough to pump money into an Indonesian venture with uncertain future.

Yes, i think that's a huge dilemna for Tiger Airways. They want to do into a vast market, but don't have a reliable partner airline....... Even Air Asia is talking about setting up a Indonesian branch to commence operations there......
 
HB-IWC
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RE: Tiger Airways, New A319 Operator

Tue Jul 25, 2006 3:18 pm

Quoting GneissGuy (Reply 12):
Even Air Asia is talking about setting up a Indonesian branch to commence operations there......

They already did. It is called Indonesian Air Asia and operates a fleet of 6 B733s out of Jakarta's Soekarno Hatta's International Airport. Because of the country's strict rules on foreign investment, Air Asia is not the majority share holder in this construction, though.

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