IndianicWorld
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Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 12:29 am

With all the challenges that TT have had since their start in Australia in 2007, what is the future course people see it taking?

1/ Merger with another carrier (VA possibly?)
2/ Standalone and thrives
3/ Cease ops

Given that its network has been realligned to focus on MEL and now SYD as the 2nd base, and the airline looks to focus on gaining higher yields than it was achieving, it seems to be on the right path, but it sure will be challenging IMHO.
 
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huaiwei
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 2:09 am

4) Alliance between SQ, Scoot, Tiger and VA. Of course SQ and Scoot are already naturally allied, but SQ is potentially mulling buying up all of Tiger. VA can then serve the mainstream market, while Tiger focuses on the LCC market in Australia, both of which are connected to the rest of the SQ network through SQ and Scoot.

This is actually the obvious SQ's game plan since day one. They have yet to fully make it work thou.
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qf002
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 3:36 am

Quoting huaiwei (Reply 1):
This is actually the obvious SQ's game plan since day one.

I disagree. They went pretty hard up against DJ when they first brought TT to Australia... Surely a joint venture (a la JQ Japan) would have been a better option if they always wanted to partner with VA...

My view is that TT will survive, but they will never be a major player to rival QF/VA. Their expansion will be nowhere near as rapid this time around, and I think they've realised that this market cannot handle an absolutely bare LCC. A new terminal space in MEL will make a huge difference to their marketability and should allow them to rise up to the level of JQ.

I wouldn't totally rule out a partnership with JQ. I understand the barriers, but working with JQ would really do wonders for TT.

My goal would be to be operating 25ish aircraft on mainly leisure routes, including some flights across the Tasman, in the next 4-5 years. Keep it simple, and develop the operation before you start bringing in the efficiencies (they're already moving down this path IMO -- for example, having a standby aircraft in Australia).
 
IndianicWorld
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 4:10 am

Quoting qf002 (Reply 2):
I wouldn't totally rule out a partnership with JQ. I understand the barriers, but working with JQ would really do wonders for TT.

I frankly see that as an idea that will go nowhere fast.

SQ will want to see its partnership with VA grow over any co-operation with JQ/QF.

Quoting qf002 (Reply 2):
My goal would be to be operating 25ish aircraft on mainly leisure routes, including some flights across the Tasman, in the next 4-5 years.

Getting to 25 aircraft would likely come at the cost of JQ or VA in a fairly big way.

Trying to sustain that level of service across its network here would likely be a huge challenge.

Its tried many new routes in the past, like Rockhampton and Mackay from Melbourne and found the going tough. There are not that many other viable options out there that are not already covered. It will need to eat away at other carriers market share on main routes, like the MEL-SYD, MEL-BNE and SYD-BNE sectors to really make some decent returns.

Quoting qf002 (Reply 2):
Keep it simple, and develop the operation before you start bringing in the efficiencies (they're already moving down this path IMO -- for example, having a standby aircraft in Australia).

I agree. They have learnt some lessons, but time will tell how successful things are.
 
Gemuser
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 4:53 am

Quoting qf002 (Reply 2):
including some flights across the Tasman

Some legal difficulties there as TT is a SIN airline, but their Trans Tasman flights would not be 5th freedom as they don't originate in SIN. Problems could be sorted out if both the AUS & NZL governments agree.

Gemuser
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qf002
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 5:07 am

Quoting IndianicWorld (Reply 3):
It will need to eat away at other carriers market share on main routes, like the MEL-SYD, MEL-BNE and SYD-BNE sectors to really make some decent returns.

I think this is what they need to do if they want to be successful here. The marginal niche routes don't work on niche airlines (see Strategic/Air Australia, for example), they only work with bigger brands with some market power. TT doesn't need to be huge, but needs to establish themselves as a proper competitor to JQ.

Small carriers don't survive long term in Australia, even less a LCC which depends on volume rather than high yielding traffic.

Quoting gemuser (Reply 4):
Some legal difficulties there as TT is a SIN airline, but their Trans Tasman flights would not be 5th freedom as they don't originate in SIN. Problems could be sorted out if both the AUS & NZL governments agree.

What about forming an airline in NZ? What are the rules for NZ airlines flying to Australia? Do they have the same ownership restrictions?

Otherwise, an Australian partnership would go a long way to overcoming this barrier...
 
IndianicWorld
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 5:37 am

A joint venture with VA would appear to be the best way forward, which would also give them some room for international options to be actioned.

VA is at a point that it wants to be viewed more as choice for business and higher yielding travelers, and a move to utilise TT for a low cost option may make their task easier. One brand trying to be everything for everyone can be very difficult.

A VA/TT vs QF/JQ battle would be very interesting indeed.
 
Gemuser
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 6:17 am

Quoting qf002 (Reply 5):
What about forming an airline in NZ? What are the rules for NZ airlines flying to Australia? Do they have the same ownership restrictions?

Assuming you mean a 100% SIN owned carrier in NZL, yes exactly the same problem, because TT is not an AUS or NZL company. The two governments could agreed to allow it, then no problem.

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nzrich
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 11:21 am

Quoting qf002 (Reply 5):
What about forming an airline in NZ? What are the rules for NZ airlines flying to Australia? Do they have the same ownership restrictions?

Sorry but many airlines have tried and failed against NZ . The NZ market is really a 1.25 airline market . Air NZ has the NZ to itself and the other airlines get the little that is left over . There are many that have tried AN QF and others all that have ultimately failed .
NZ has the market share and flights to all the regions no other airline will be able to compete .
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qf002
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RE: Tiger Australia : Whats Its Future Direction?

Sun Apr 22, 2012 11:27 am

Quoting nzrich (Reply 8):
Sorry but many airlines have tried and failed against NZ . The NZ market is really a 1.25 airline market . Air NZ has the NZ to itself and the other airlines get the little that is left over . There are many that have tried AN QF and others all that have ultimately failed .

Firstly, JQ has been pretty successful...

Secondly, I was referring to setting up an airline in NZ to operate Tasman flights for TT, not an airline to operate domestically within NZ... That market is waaay too full as it is (as you said...)

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