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Name: TIGERAIR AUSTRALIA
7JetSet7 Code: TAU
Status: Operational
Region: OCEANIA
City: MELBOURNE
Country: AUSTRALIA
Employees 147
Web: tigerair.com
Email: vanessa.regan@tigerairways.com
Telephone: +61 3 9330 3188
Fax: +61 3 9330 3288
Sita:
Background
(definitions)

Click below for data links:
TAU-2011-07-AIRLINE GROUNDING
TAU-2011-07-AIRLINE GROUNDING-A
TAU-2011-07-AIRLINE GROUNDING-B
TAU-2013-07 - TIGERAIR INTRO
TAU-2014-03-BRISBANE BASE
TAU-2014-03-TOP 12 AIRPORTS
TAU-2014-03-TOP 12 ROUTES

Formed and started operations in 2007. Domestic, regional, & international, scheduled & charter, passenger & cargo, jet airplane services.

Address:
Changi Airport
PO Box 82
Singapore 918413, Republic of Singapore

AUSTRALIA (COMMONWEALTH OF AUSTRALIA) WAS ESTABLISHED IN 1901, IT COVERS AN AREA OF 7,686,848 SQ KM, ITS POPULATION IS 17.9 MILLION, ITS CAPITAL CITY IS CANBERRA, AND ITS OFFICIAL LANGUAGE IS ENGLISH.

February 2007: Qantas (QAN) scotched rumors that it is contemplating cutting its investment in Singapore-based Jetstar Asia Airways (JSA). (QAN) (CFO) & (JSA), Chairman Peter Gregg said that "(JSA) is, and will continue to be, an important part of the (QAN) Group's diversification strategy." Local press reports have expressed concerns over the airline's future, following a number of operational cancellations and claims regarding pilot (FC) shortages. (QAN)'s rejection of those rumors comes as speculation mounts that (JSA) competitor Tiger Airways (TGR) is looking at launching domestic operations in Australia (as Tiger Australia (TAU)), in conjunction with Perth-based regional Skywest Airlines (SKD). (TGR) (CEO) Tony Davis joined the (SKD) board last year.

Just one day after reporting a thumping profit, (QAN) was brought back to earth, when Singapore's (TGR) unveiled plans to launch Australian domestic services by year end, with 5 new A320s operating as (TAU).

During the announcement, (TGR) President & (CEO) Tony Davis took a cheeky swipe at (QAN), saying his airline (TAU) is ready to "deliver Australians genuine low fares, competing in a market which has returned to a cozy duopoly and seen fares increase."

Australians actually enjoy some of the world's cheapest airfares, with transcontinental fares from A$189/$147 on Jetstar Airways (IMU) or A$219 on (QAN) with full service. But there is a twist. While (QAN) and Virgin Blue (VOZ) serve all major trunk routes, (IMU) connects secondary airports with major cities. (TAU) intends to bring its fares, which are similar to or lower than (IMU)'s, to major trunk routes.

Davis claimed that "Unlike others in this market, we won't be a low-cost carrier (LCC) selling high fares. We'll be low cost and very low fare." (TGR) will launch Singapore - Perth service next month, and has been flying to Darwin for some time. Davis outlined his carrier's plans to federal ministers last week, started the process to obtain an Australian Air Operator's Certificate (AOC) for (TAU), and has filed with Australia's Foreign Investment Review Board. Contrary to most countries, Australia allows 100% foreign-owned airlines to operate domestically if it is in the national interest.

The move by (TGR) has been expected, as (QAN) is the largest shareholder in Singapore-based (JSA), (TGR)'s biggest rival. (TGR)'s major stakeholder is Singapore Airlines (SIA). Centre for Asia Pacific Aviation, Executive Chairman, Peter Harbison said he "sees (TAU) more focused on a direct attack on the local market, rather than providing support to the Singapore flag carrier (SIA). But (SIA) would not weep over any adverse economic impact on one of its major rivals."

Davis is on the board of Perth-based, regional Skywest Airlines (SKD), but it is not clear what cooperation will evolve between the 2 airlines.

March 2007: Tiger Airways (TGR) will launch 4x-weekly Singapore (SIN) - Perth flights on March 23, becoming daily on May 1.

(TGR) was given the green light by Australia's Foreign Investment Review Board (FIRB) to proceed with the creation of Tiger Australia (TAU)). (TGR) said the (FIRB) found that "the creation of (TAU) was consistent with the government's foreign investment policy, and did not place any specific conditions on the creation of the new airline." (TAU) now will now work toward securing its Air Operators Certificate (AOC).

(TGR) (CEO) Tony Davis said he was "very encouraged by the support received from so many communities across the country," adding that (TAU) is in the final stages of negotiation with a number of Australian airports for the location of its principal operating base. Brisbane, Melbourne, and Adelaide are front runners.

April 2007: Menzies Aviation is the handling agent for Tiger Airways (TGR)'s new operation in Perth, Tiger Australia (TAU).

May 2007: New entrants in Australia and New Zealand, including Tiger Airways (TGR)'s foray into the market as Tiger Australia (TAU), are triggering a wave of deep discounting, according to the Sydney-based, Centre for Asia Pacific Aviation (CAPA). Qantas (QAN) subsidiary, Jetstar Airways (IMU), which celebrated its third anniversary, had 130,000 seats for sale with companion fares as low as A$2.50/$2.06 on many domestic, trans-Tasman and international routes. The sale was designed to head off (TGR)'s announcement of its choice of Melbourne Airport as its (TAU) base. Virgin Blue (VOZ) retaliated with a -25% cut of its discount fares, while (QAN) also launched a 5-day domestic sale. (CAPA) said the frenzy will cross the Tasman to New Zealand with confirmation that "Kiwijet," a new Low Cost Carrier (LCC) based on Southwest Airlines (SWA)'s business model, plans to take to the skies later this year.

June 2007: Tiger Airways (TGR) received final approval from Indian authorities to operate commercial flights from Singapore to Chennai, Cochin, Goa, Trivandrum, Kolkata, and Kozhikode. (TGR) said it will announce a schedule "fairly soon" and expects to link its Indian services to its new operation in Australia (Tiger Australia (TAU)).

(TGR)'s impending entry into the Australian market with (TAU) is altering the dynamics of the country's route structure. Recently, Qantas (QAN) low-cost carrier (LCC) subsidiary, Jetstar Airways (IMU) announced plans to operate on the major Sydney to Brisbane route from December. The move represents a departure from the convention of not linking major capital city airports, a policy that protected (QAN) from direct competition. (TAU)'s entry later this year onto major routes, plus the mammoth expansion solidified, with an order for 50 additional A320s announced at the Paris Air Show, has changed the playing field. While (IMU) flies midday, it now is likely that (QAN) will alter the schedule to fend off (TAU). (IMU) also is expected to begin serving Melbourne Tullamarine airport as it currently operates out of Avalon.

(TAU) fired the 1st shots in what is expected to be 1 of the toughest domestic fare wars yet seen in Australia. Its opening fare of A$80/$67.29 between Darwin, 1 of its 2 current entry points, and its domestic base of Melbourne is one-third the typical fare. The cities are 3,151 km apart. (IMU) responded immediately with a A$79 offering.

July 2007: The Australian domestic market is heading for intense price competition as Singapore-based Tiger Airways (TGR) announced more domestic routes and fares for its Australian Tiger Australia (TAU) launch in late November. (TAU)'s latest route announcement is Melbourne to Launceston with fares starting at A$39.99/$34.87. Its Australian operation will be based in Melbourne, and destinations include Perth, Mackay, Rockhampton, Alice Springs and Darwin. Qantas (QAN) low-cost subsidiary Jetstar Airways (IMU) bettered the Launceston fare with a A$29 offering. However, it has yet to match (TAU)'s Melbourne to Perth fare of A$59.95, recently announced. (IMU)'s best fare for that 4-hour transcontinental journey is A$99, inclusive of all charges and taxes. (TAU) plans to launch its Australian service on November 23, with all announced destinations in operation by December 1.

August 2007: Tiger Airways (TGR) chose the (V2500) for its recently ordered A320s. The order for engines for the 50 A320s plus (V2500) Select aftermarket agreements is worth S$1.3 billion. (TGR) ordered 30 A320s and took options on 20 at the Paris Air Show in June. The airplanes will underpin its aggressive expansion into the Australian domestic market with Tiger Australia (TAU), from November and the Singapore - India market from October.

October 2007: Tiger Airways (TGR) opened its new terminal for Tiger Australia (TAU) at Melbourne Tullamarine (MEL) in addition to initiating a fare war, with transcontinental routes such as (MEL) to Perth, going on sale for A$39.95/$35.90 and flights from (MEL) to Gold Coast, running at A$19.95. (CEO) Tony Davis told media in Melbourne, that 15,000 seats will be available at those fare levels. (TAU) will launch domestic services next month in Australia with 5 A320s.

(TGR) confirmed its Paris Air Show order for 30 A320s plus 20 options. (TGR) currently operates 9 A320s, with 11 scheduled for delivery by 2010. (TGR) announced in August that it had selected the (V2500) engine. The airplanes will seat 180Y. "(TGR) is expected to enjoy impressive growth from our Singapore international, and Australian domestic networks (TAU), and we are expanding our airplane fleet to meet continued strong demand for affordable air travel across the Asia Pacific region," (CEO) Tony Davis said. (TGR) is planning to launch its Australian (TAU) domestic service this fall.

A320-232 (3275, VH-VNC), (TGR) wet-leased.

November 2007: Tiger Australia (TAU) is upping the ante down under, ahead of the late-November launch of flights from its new Australian base in Melbourne, placing 40,000 tickets on sale from A$9.95/$9.13, inclusive of taxes and charges, and announcing Newcastle, Canberra, and Hobart as new destinations.

(TAU) took to Australian skies on schedule with its 1st flights from Melbourne to Gold Coast, Rockhampton and MacKay in Queensland, after being awarded its Air Operator's Certificate (AOC) 2 days earlier. Plans to operate to Alice Springs from December 1 have been grounded, after a breakdown in ground handling arrangements with Qantas (QAN). The service now will start on March 1.

A320-232 (3296, VH-VND), (TGR) wet-leased.

December 2007: Tiger Airways (TGR) has flown into the black, while claiming to have the 2nd-lowest unit costs in the world. (TGR) (CEO) Tony Davis, who has been tight-lipped on the airline's profit performance, said: "We have been cash flow positive for 2 years and profitable for the last 2 quarters." He also declared that (TGR) now "has the world's 2nd-lowest (ASK) capacity costs" behind AirAsia (ASW) and issued a warning to Australia's Jetstar Airways (IMU): "We are reducing our costs all the time." While Davis declined to provide a figure, (IMU)'s unit cost, excluding fuel, fell -7.4% last fiscal year, to 5.49 Australian cents/4.8 US cents. AirAsia (ASW) boasts (CASK), excluding fuel, of 1.56 USA cents.

Regarding (TGR)'s recently launched Australian domestic operation, Tiger Australia (TAU) Davis said that "forward sales are significantly ahead of budget, and we are pleasantly surprised by the level of demand."

(TGR) converted 20 A320 options, completing the firming of its 50-airplane order (30 firm and 20 options), announced at the Paris Air Show. The airplanes will seat 180 passengers in an all-economy (Y) configuration. (TGR) currently flies 12 A320s and will take 8 more through 2009. The final airplane now will be delivered in 2016.

A320-232 (3332, VH-VHF), delivery.

March 2008: Tiger Airways (TGR) will increase services to regional Australia to take on Virgin Blue (VOZ)'s new E-jets and QantasLink (NJS)'s Dash 8-Q400s and 717s. Speaking at the National Aviation Press Club in Sydney, Tiger (TGR) (CEO) Tony Davis told media that "destinations like Tamworth [in regional New South Wales] have seen the cost of airfares increase and their citizens are desperate for the low-cost revolution to arrive." He said the cheapest flight from Tamworth to Melbourne [(TAU)'s base] is on Qantas (QAN) at A$356/$332 and involves a Sydney stop. (TAU) plans to use 144-seat A319s for its regional push, and the airplanes also will spearhead a move across the Tasman to New Zealand later in the year. Davis sees the A319 as perfectly sized, with 20 regional airports able to handle it and another 20 requiring just a slight lengthening of their runways. He added that Tiger (TGR) has 50 A320s on order up to 2016 and a substantial number could be switched to A319s, with a fleet of up to 30 airplanes eventually based in Australia. (TAU)'s initial fleet plan involved five A320s, with the fifth arriving next month, serving 13 destinations, offered early insight into the airline's growth plans. As it did last year, Tiger (TGR) will invite Australians to vote online for their preferred regional destination as it attempts to gauge demand. Davis expects to announce a second Australian base within 3 months and told media that the airline plans 5 operating bases in the country over the next 7 years. For the New Zealand market, it is eyeing Palmerston North.

(CIT) Aerospace (TCI) will lease 2 new A319-100s to Tiger Airways Australia (TAU). The airplanes are powered by (IAE) (V2524-A5)s.

October 2008: Jetstar Airways (IMU)'s new (CEO) Bruce Buchanan, downplayed the impact of Tiger Airways (TGR) in the Australasian market (as Tiger Australia (TAU)), saying that his focus is on "bigger [low-cost] competitors with large fleets, that have a significant impact on the market. There is only one or 2 in the Asian region and I don't put Tiger (TGR)/(TAU) in that category."

Virgin Blue (VOZ) operates >50 airplanes and has local market presence, while Kuala Lumpur-based AirAsia (ASW) has 70 airplanes and has been frank about its ambitions.

(TAU) currently operates just five airplanes in Australia, but last year, (TGR) ordered 50 A320s for Asian operations. (TGR) has been coy on where they will be deployed, but short-term Australian (TAU) plans indicate a fleet of eight airplanes. "We do take them seriously and we welcome competition. It's good for the economy and it's healthy for us, keeps us nimble," Buchanan said.

(IMU)'s fleet comprises 31 A320 family airplanes with 68 more deliveries planned through 2013. (IMU) now serves 20 Australian destinations and 29 internationally from Australia, and hubs in Singapore and Hanoi. Buchanan said it is "well placed to sustainably put more low fares into the marketplace." Passenger numbers in the year ended June 30 rose +32.3% year-over-year to 5.8 million, while (RPK)s traffic soared +47.5% to 6.41 billion, with load factor at 71% LF.

December 2008: Tiger Airways (TGR) and Tiger Australia (TAU) parent, Tiger Aviation posted a +S$9.9 million/+$6.5 million profit in the fiscal year ended March 31, the Centre for Asia Pacific Aviation reported. The result compares to a -S$24.7 million loss the previous year. (TGR) reported a +S$37.8 million profit, while the new Australian subsidiary (TAU) posted a -A$12.2 million/-$8 million operating loss.

January 2009: Domestic airfares in Australia have plummeted -30% in a year to the lowest point in 17 years, according to data released by the government's Bureau of Infrastructure, Transport and Regional Economics (BITRE). While the lowest fares fell dramatically, domestic business class (C) fares eased just -1% but are expected to decline more significantly in the coming months as the economy continues to slow and business confidence sinks to its lowest level since surveys were launched in 1998. An Australian Chamber of Commerce and Industry (ACCI) investor confidence survey found that expectations for early 2009 were even worse than 2008. (ACCI) said business conditions and sales were at their lowest levels since 1998 when the survey began and profitability was at its lowest level in seven years. The (BITRE) Domestic Air Fare Index is not expressed in actual fares but as an index. The January 2008 index of 56.1 is almost half that of January 1993.

Fares also are expected to nosedive on international routes from February, with some Australia-based airline executives describing forward bookings as "extremely weak." On the Pacific, V Australia (VAZ) is due to launch 777-300ER service on February 27 with fares starting at A$1,199/$827.65 return. Delta Air Lines (DAL) will launch Atlanta to Los Angeles to Sydney flights on July 1. On shorter-range routes, both Tiger Airways (TGR)/(TAU) and AirAsia X (ASX) are offering significant discounts, with a A$206 1-way Melbourne to Singapore fare and a A$199 one-way ticket to Kuala Lumpur from Melbourne and Perth.

A320-232 (3734, VH-VNH), delivery.

March 2009: Tiger Australia (TAU) opened its newest base in Australia: Adelaide. New destinations include Perth, Gold Coast and
Hobart, complementing existing flights to Melbourne. Canberra and Alice Springs will soon follow.

February 2010: Tiger Airways (TGR) and Tiger Australia (TAU) parent, Tiger Aviation Group posted a net profit of +S$14.1 million in the fiscal third quarter ended December 31, reversed from a -S$7.9 million loss in the year-ago period. 3rd-quarter operating profit was +S$23.5 million, boosted by a +29% year-over-year increase in revenue to S$139.5 million. President & (CEO) Tony Davis said the turnaround was "driven by traffic growth across both our airlines, increasing ancillary revenues and a focus on cost containment." Unit cost fell -16% and (CASK) excluding fuel, was cut 4%. "With this result, our year-to-date underlying operating profit, excluding fuel hedging losses of -S$22.2 million and (IPO)-related expenses of S$7.6 million, was S$36.6 million, a S$68 million turnaround from the previous financial year," Davis said. Load factor rose +4.6 points to 87.6% LF on a +23.3% lift in capacity to 1.96 billion (ASK)s.

March 2010: Tiger Airways (TGR) named bmibaby (BMI) Managing Director Crawford Rix as Managing Director of Tiger Airways Australia (TAU).




July 2010: Tiger Airways Australia (TAU) is the Australian subsidiary of Tiger Airways (TGR) based in Singapore. It operates domestic services from Melbourne to the Gold Coast, Mackay, Rockhampton, and Alice Springs. Services to Darwin connect with the Tiger Airways (TGR) service to Singapore.

(IATA) Code: TT. (ICAO) Code: TGW.

Main base: Melbourne Tullamarine International airport (MEL).









A (TAU) spokesperson said (TAU) "has responded promptly and in full to (ACASA)'s inquiry, Safety underpins (TAU)'s operations at all times and (TAU) continues to operate normally with (ACASA)'s approval," the spokesperson said. (TAU) is partly owned by Singapore Airlines (SIA).

The last time (ACASA) issued a "show cause" notice to a major airline was to Ansett (ANS) in 2001 over safety breaches with its 767s.



Passengers booked on flights through August on grounded Tiger Airways Australia (TAU) are now entitled to a full refund after a deal brokered by the Australian Competition and Consumer Commission (ACCC). (TAU), grounded until at least August 1 over safety concerns, was resisting passenger demands for refunds for flights booked next month.

Australia's consumer watchdog received a commitment from (TAU) on remedies it will offer passengers affected by the suspension of flights. "The (ACCC) decision to accept this commitment from (TAU) provides clarity to affected consumers and ensures that they are not left out of pocket," said (ACCC) Chairman Graeme Samuel.

As a result of its suspension, (TAU), a subsidiary of Tiger Airways Holdings, is not selling tickets.

The (ACCC), together with other Australian consumer law regulators, have raised various concerns in relation to the treatment of consumers affected by the suspension. (TAU) has committed to automatically provide refunds to passengers who have been affected by the cancellation of flights in July.

For domestic flights booked to depart prior to August 1, (TAU) will provide a full refund, including ticket cost, taxes and any surcharges to all consumers and will refund these within 20 business days from the date the flights were canceled. For flights in August, (TAU) has agreed to allow consumers to cancel those flights without penalty. If passengers choose to cancel a booking, they will be required to advise (TAU) airline of their cancellation at any time until 7 days after the resumption of services, which is subject to regulatory clearance by the (ACASA).

Singapore-based, Tiger Airways (TGR) Holdings said former SilkAir (SLK) (CEO) Chin Yau Seng would take over as acting (CEO) to allow the company's head Tony Davis to focus on overseeing subsidiary Tiger Airways Australia (TAU)'s recovery from its grounding by regulators over safety issues.

Davis said his appointment as (CEO) of (TAU) is a "tangible demonstration" of the company's "long-term" commitment to Australia. He noted that (TAU) will not contest the extension of its grounding by Australia's Civil Aviation Safety Authority (ACASA) through August 1.

Speaking with the Australian Broadcasting Corporation (ABC), Davis said, "We're doing everything necessary to reassure (CASA) and the public that (TAU) is a safe and viable airline and has an absolute long-term future in Australia. Right now we're undertaking a comprehensive review of the operation, we're making sure that we can assure ourselves that the airline is safe and viable and we're focused on resuming services at the end of the month. So, the process is ongoing."

He emphasized to the (ABC) that Tiger Airways Holdings is "investing significantly in the long-term future of Tiger Australia (TAU). Let's complete the review, let's see what needs to be done and the commitment from the business is what needs to be done will be done."

He added that the grounding, which started July 2, is "costing us in tangible terms about A$2 million/$2.1 million a week, so obviously the fact that we've decided to suspend the services until the end of July means that that's a significant cost."

The grounding has affected up to 35,000 passengers weekly, while costing the airline approximately A$7 million/$7.8 million in lost revenue.





SEE ATTACHED "FLIGHT INTERNATIONAL" ARTICLE - - "TAU-2011-07-AIRLINE GROUNDING-A/B."









(TAU) said it would close its crew base at Adelaide and temporarily close its Avalon base. (TAU) resumed ticket sales for the Melbourne to Sydney route and said it will announce details concerning resuming more routes shortly. (TAU) will also reduce its fleet from 10 A320s to 8.





(TAU) has now resumed limited services, adding flights to Perth this month. It now services Brisbane, the Gold Coast and Sydney from Melbourne.





November 2011: Tiger Airways Australia (TAU) has received regulatory approval to operate 32 sectors daily, an increase from the current limit of 22 sectors.

The approval from the Civil Aviation Safety Authority of Australia (CASA) takes immediate effect, said Singapore-based Tiger Airways (TGR) in a stock exchange statement.

With the increase, (TAU) plans to introduce an extra daily service on the Melbourne to Perth, Melbourne to Brisbane and Melbourne to Gold Coast routes. It also intends to add 2x-daily services on the Melbourne to Sydney route. These new services will be rolled out before Christmas.

August 2012: Tiger Airways Australia (TAU) has based its 2nd airplane at the newly relaunched base in Sydney (SYD) and launched flights to Brisbane (BNE) on August 1. The A320 operator initially operates 2x-daily, increasing to 4x-daily on September 1st. The new operation faces considerable competition. Qantas (QAN) operates 136x-weekly, while Virgin Australia (VOZ) serves the market with 131x-weekly flights and fellow low cost carrier (LCC) Jetstar (IMU) operates 23x-weekly.

September 2012: Tiger Airways Australia (TAU) plans to resume its Melbourne to Adelaide service on November 1st and will operate 2x-daily flights from Melbourne's Tullamarine airport to Adelaide airport. The service will start in time for the summer holiday and upcoming new year festival season in south Australia.

Flights to and from Adelaide are still subject to regulatory approval.
"(TAU) is continuing with its Australian expansion as planned and our return to Adelaide is an important milestone on this journey," (CEO) Andrew David, said.

October 2012: Virgin Australia (VOZ) has acquired 60% of Tiger Airways Australia (TAU), 100% of Australian regional, Skywest Airlines (SKD) and has sold a 10% stake to Singapore Airlines (SIA).



























(TAU) will launch 4x-weekly, Melbourne - Sunshine Coast service on March 27, 4x-weekly, Sydney - Cairns service on April 4, and 4x-weekly service to Alice Springs from Melbourne and Sydney on April 9.

April 2013: The Northern Territory town of Alice Springs (ASP) has succumbed to the prowess of Tiger Airways Australia (TAU), which has started 4x-weekly A320 services from both Sydney (SYD) and Melbourne (MEL), each beginning on April. The 2,023 km link to Sydney will trace daily competition from Qantas (QAN), with a similar competing frequency from the same airline on the slightly shorter 1,857 km sector to the most populous city in the state of Victoria. Both (QAN) flights are operated by its 168-seat 737-800s.





Virgin Australia (VOZ) expects the transaction to be complete by mid-July.

July 2013: Low-cost carrier (LCC) Tiger Airways (TGR) has been re-branded as "Tigerair," as it seeks to improve passenger connectivity through Singapore. SEE ATTACHED - - "TAU-2013-07 - TIGERAIR INTRO." The re-branding means that its subsidiary in Australia, Tiger Airways Australia (TAU), will become "Tigerair Australia." The carrier has yet to confirm if its affiliates in Indonesia and the Philippines (Mandala Airlines (MND) and Seair (SRQ)) will be re-branded.

A contemporary grey rounded font typography, with brushing orange accents replaces the leaping tiger that used to be the main element of Tiger Airways (TGR)'s logo. SEE PHOTO - - "TAU-2013-07 - TIGERAIR."

Tigerair (TGR) said it is creating synergies between its carriers based in Singapore, Indonesia and the Philippines by allowing passengers to book connecting flights via Singapore. It also plans to introduce mobile and web check-in options, improve the capabilities available on its mobile phone applications, allow passengers to amend bookings online and give them the option to pre-order meals. "We have initiated a series of changes since late last year, and this brand identity should be seen as a reinforcement of our commitment towards a better and bolder Tigerair (TGR)," said the group's (CEO) Koay Peng Yen.

Tiger Airways Holdings slipped back into the red for the quarter ending June 30 2013 (1st Quarter, Fiscal Year FY2014) as its affiliates in Australia, Indonesia and the Philippines were again unprofitable. The group is confident its new partnership with Virgin Australia (VOZ) will soon lead to profits at Tigerair Australia (TAU) and there will also be improvements at Tigerair Mandala (MND) and Tigerair Philippines (SRQ), but challenges remain at all 3 low cost carriers (LCC)s.

Meanwhile, the group faces potential over-capacity in its home market as Tigerair Singapore (TGR) accelerates expansion. (TGR) is adding 5 airplanes over the next 9 months for a total of 26 A320s, marking the biggest expansion in 2 years, when over-capacity led to losses.

There are bigger potential opportunities for growth in Indonesia, but Tigerair Mandala (MND) has not yet become profitable. The outlook for Tigerair Philippines (SRQ), which has been stuck at only 5 A320s for the last year, is bleaker.

October 2013: (BAE) Systems commenced base maintenance support for Tigerair Australia (TAU) from its Melbourne International Airport hangar as of October 1st, 2013, providing around 20 new full time jobs.

Tigerair Australia (TAU) (CEO) Rob Sharp, says the new strategic partnership reinforces a commitment to strengthen the operational performance of the airline as part of the long term business strategy.














(TAU)'s initial based operation will feature daily services to Cairns and Darwin, as well as 6x-weekly flights to Adelaide. While on flights to Darwin the (LCC) will offer the same weekly frequency as the 3 incumbents, giving all 4 airlines an equal 25% of all flights, its share to Cairns will be just 8% and marginally better to Adelaide at 10%.

With little fanfare, Virgin Australia (VOZ) and Tigerair Australia (TAU) have made the 1st public change to their networks as part of the dual-brand strategy they are now pursuing following Virgin (VOZ)'s purchase of 1-time competitor, (TAU) that gives (VOZ) a budget off-shoot to match the Qantas Group's Qantas (QAN)-Jetstar (IMU) pairing. As stated above, (TAU) will enter the Brisbane - Darwin market at flight timings almost identical to Virgin (VOZ), which will change its timings to match (QAN).

The nuances may seem local but the implications are global: Australia will be the 1st market to see 2 full-scale dual-brand strategies compete head-to-head with each other. Product, service and brand are key ingredients to a successful dual-brand strategy, but the network underpins it. Many airlines have tried a dual-brand strategy but most bundle some (sometimes all) of the necessary components. Virgin Australia (VOZ) is not just going to attempt a dual-brand strategy but is doing so in the backyard of 1 of the airlines that pioneered it. In 1 of the ironies typical of the Australian market, (QAN) developed Jetstar (IMU) and the dual-brand strategy to combat then low-cost Virgin Blue. In response, (VOZ) started to move upmarket and reached a point where it largely had to become full-service, exposing its inability to successful target the low-end of the market. Buying (TAU) completes a nearly decade-long circle, but begins the intricate process of making the 2 airlines work alongside each other.

A320-232 (5900, VH-VNR), ex-(D-AVVO), Thames Leasing leased.





Tiger Australia (TAU) currently flies domestic sectors only, with its main operating bases being at Melbourne and Sydney, which currently control a combined 60% of its seats. However, as (TAU) continues to spread its network, the importance of these two bases has been reduced, as they were responsible for 65% of seats in the same week 12 months earlier.





In comparison to weekly data for last year, (TAU) is offering an additional 50 weekly flights (404 vs 354) in the week of March 18th - 24th 2014. Adelaide to Melbourne has seen the largest spike in weekly flights over the past 12 months, with a +21% increase from 2x-daily to 17x-weekly, whereas the Melbourne to Hobart city pair has witnessed the greatest decline, from 9x-weekly to daily (-22%). The bottom 3rd of top 12 routes are all new entrants in the last year.



May 2014: Nearly 6 months since Australia mandated the use of Automatic Dependent Surveillance-Broadcast (ADS-B), >97% of domestic and international airline flights in Australian airspace >29,000 feet (flight level 290) are being conducted using (ADS-B) surveillance, according to air navigation services provider, Airservices Australia.

The 1st (ADS-B) fitment mandate became effective December 12, 2013 for all Instrument Flight Rules (IFR) flights at or >29,000 ft. in Australian airspace. On February 6, 2014, the Civil Aviation Safety Authority (CASA) required all new (IFR) airplane registrations in Australia to be (ADS-B) capable, as well as all new transponder installations in older (IFR) airplanes.



Australia has a network of 61 (ADS-B) ground stations providing continent-wide air traffic control surveillance. Over the next 3 years, Airservices will install a further 15 (ADS-B) ground stations to provide additional surveillance coverage at lower altitudes and extend higher level coverage offshore.



June 2014: Adam Rowe has been appointed Commercial Director, replacing Carly Bear, who has left Tiger Australia (TAU). Adam is responsible for all commercial aspects of (TAU), including revenue management, network, marketing, communications, sales and distribution, and ancillary revenue.







Since Lee took the helm, the group has sold its Tigerair Philippines (SQH) operation for $15 million to Cebu Pacific (CEB), closed down its Indonesian Tigerair Mandala (MND) subsidiary following a lack of potential buyers, and subleased surplus airplanes to other carriers.













August 2015: News Item A-1: The Virgin Australia Group reported a net loss of -A$93.8 million/-$71.8 million for the full year ended June 30 (FY) 2015), narrowed from a -A$353.8 million loss in the previous financial year.

Total Group revenue and income increased +10.3% year-on-year to A$4.8 billion, inclusive of A$284.1 million of Tigerair Australia (TAU) revenue since October 17, 2014.



Current cost of capital is approximately 10%, and return on invested capital has increased +4.7% points from +1.4% a year ago to +6.1%.



The group reported a strong turnaround in Virgin Australia (VAU) Domestic business, with operating earnings (EBIT) of A$111.1 million, an improvement of +A$210.1 million on (FY) 2014, and on track for further margin improvement for (FY) 2016.

Revenue increased +4.8% year-on-year, on the back of capacity increases of +1.3%, driven by growth in the corporate and government, charter, interline and code share segments. Yield improved +5.2% compared to (FY) 2014, driven by an increased share of higher-yielding market segments.



Virgin Australia International (VAU) reported a drop in operating earnings, down -A$22.8 million year-on-year to A$68.9 million for (FY) 2015. Revenue was down -3.35% compared to (FY) 2014, on a capacity decline of -0.4%. The group said that increased competitive pressure, particularly in the SE Asian and long-haul markets, constrained yield recovery during the financial year.

The 1st phase of initiatives to improve the performance of the international business has begun to show improvement, with underlying (EBIT) improving by +A$2.4 million in the 2nd half of (FY) 2015 compared to the prior corresponding period. A 2nd phase of the plan will involve launching the Tigerair Australia (TAU) brand in the short-haul international market, to better cater to changing dynamics in the region.

The International Business is expected to be profitable by the end of (FY) 2017.





News Item A-2: Virgin Australia ((IATA) Code: VA, based at Brisbane International) (TAU) will transfer 3 737-800s to its Tigerair Australia ((IATA) Code: TT, based at Melbourne Tullamarine) (TAU) subsidiary ahead of the latter's international debut early next year. The move is part of what the Virgin Australia Group says are plans to 'optimise its international network to deliver improved fleet utilisation and meet customer demand on key trans-Tasman and short-haul international routes.'

As such, regulatory requirements aside, Tigerair Australia (TAU) will use the 3 all-economy 737s to offer scheduled services to Denpasar, Indonesia from Adelaide (5x-weekly); Melbourne Tullamarine (daily); and Perth International (daily) effective March 23, 2016. Virgin Australia (VOZ) will itself withdraw from each of the 3 routes on March 22, 2016.

(VOZ) acquired outright control of (TAU) late last year following Tigerair (TGR)'s decision to withdraw and focus on its own operations. The (LCC) currently operates 13 A320-200s on flights connecting Sydney Kingford Smith, Adelaide, Brisbane International, Cairns, Coffs Harbour, Coolangatta/Gold Coast, Hobart, Mackay, Melbourne, Perth, and Proserpine.

News Item A-3: TigerAir Australia (TAU) currently operates 13 airplanes to 1 country to 12 destinations, on 18 routes and 49 daily flights.

November 2015: Tigerair Australia (TAU) has received Boeing (TBC) 737-800 (34013, VH-VUB) this month.

The 737-800 is part of a trio of 737s (TAU) sourced from parent Virgin Australia (VAU) to operate its 1st international flights from Perth International, Melbourne Tullamarine, and Adelaide to Denpasar, Indonesia beginning in late-March of next year.

Prior to the 737's delivery, Tigerair (TAU) had been an all-Airbus Industrie (EDS) operation, plying 14 A320-200s on flights to 11 destinations across Australia from bases at Brisbane International, Melbourne, and Sydney Kingsford Smith.

(TAU) currently operates 15 aircraft, to 1 country, to 11 destinations, on 18 routes and 76 daily flights.

June 2016: "Value Alliance: the Hubs, Focus Airports and Routes Where Alliance Members Might Gain Synergies", by (CAPA), June 20,2016.

Since the Value Alliance was announced in May 2016 as the 2nd low cost carrier (LCC) alliance, there has been industry interest about how and where the alliance can deliver synergies. The 9 initial members of the Value Alliance include Cebu Pacific (CEB), Cebgo (SRQ), Jeju Air (JJA), Nok Air (NKA), NokScoot (NSC), Scoot (SCT), Tigerair Singapore (TGR), Tigerair Australia (TAU) and Vanilla Air (VNL).

Tokyo Narita is the alliance hub with more service from Value members (five) than any other. But Asia's most popular airports for Value members are not where the alliance has a local member: Taipei and Hong Kong.

In terms of frequency, Manila and Bangkok Don Mueang have the most Value flights, reflecting their local membership there. The local Value member based at an airport typically dominates the hub, accounting for >90% of Value flights. That creates a strong feed network for other members but also (potentially) competition that may be too strong. Members overlap on only 6 routes so far and their combined frequency gives them a scale advantage against non-Value (LCC)s. Although it is premature to evaluate the effectiveness of the alliance (new members will join and existing members will grow) this analysis looks at where there are network opportunities for cooperation.

* Airports most frequented by Value Alliance are not member hubs.

There are services from 3 or more members of the Value Alliance at 15 airports in Asia. This includes Tigerair (TGR) and Scoot (SCT), which have the same ownership, but excludes Cebu (CEB) and Cebgo (SRQ), since (CEB) owns (SRQ). (TGR) and (SCT) are expected to merge, with only one brand surviving.

5 airports have services from 4 or more alliance members. The 2 most popular airports (Taipei Taoyuan (6) and Hong Kong (5)) are not local hubs for the Value Alliance. Three airports have services from 4 Value members: Hanoi, Osaka Kansai, and Tokyo Narita. Only Tokyo Narita is a Value hub (served by Vanilla Air (VNL)), although Osaka Kansai is a growing focal point for (VNL) and in time, will likely become a hub.





In contrast, SE Asia has 3 wide body (LCC) operators that are belong to an alliance: Scoot (SCT), NokScoot (NSC) and Cebu (CEB). (CEB) can access NE Asia with narrow body aircraft, although it sometimes uses wide body aircraft on trunk/congested routes. There are services from 3 Value members at 10 airports, and all but 3 are Value member hubs.

* Measured by frequency, most services are at Value alliance member hubs.

This analysis next looks at the largest airports in the Value Alliance based on weekly frequencies. This analysis comprises the 21 largest airports (the 20th and 21st largest have the same number of frequencies). The 6 largest airports are all member hubs.

The 4 largest (Manila, Bangkok (DMK), Singapore, and Cebu) are significantly larger than the rest. Of the 10 largest airports based on member frequency, only 2 (Hong Kong and Taipei Taoyuan) are not member hubs.

* Largest Value Alliance airports are dominated by their members.

13 of the region's largest airports have >7 daily flights from alliance members. Each is dominated by its local alliance member. At the 2 largest (Manila and Bangkok (DMK)) the local alliance hub member operates 98% and 94% of all flights by the alliance. In other words, of all Value flights at Manila, Cebu (CEB) operates 98% at Manila, while NokScoot (NSC) and Nok (NKA) operate 94% of all Value flights at Bangkok (DMK).

A Value Alliance Member typically accounts for over 90% of alliance flights at its home. 4 airports are around the 80% mark, while there is no Value Alliance member operating flights at Bangkok (BKK) (they instead operate out of Bangkok (DMK)).

* Value Alliance members overlap on 6 routes.

There is a possibility that the Value Alliance could help (LCC)s gain scale on routes, especially where due to infrastructure constraints ( slots, air traffic, bilaterals) organic growth may not be an option.

In the week commencing June 12, 2016 the Value Alliance members overlap on only 6 routes. This excludes overlap only between Scoot (SCT)/Tigerair (TGR) (owned by the same company and expected to be merged) and Cebu (CEB)/Cebgo (SRQ) (Cebu (CEB) owns Cebgo (SRQ)). (CEB) has the most overlap (4 routes) followed by Jeju (JJA) (3), Tigerair (TGR) and Scoot (SCT) (2) and then Vanilla Air (VNL) (1).

No route has >2 operators. The frequency split varies between relatively even and lopsided. As this analysis is focused on the opportunity to offer more flights, frequency (not seats) is considered. The use of wide bodies at Scoot (SCT), and sometimes Cebu (CEB), would alter a capacity share analysis.

* Value Alliance opportunity to link NE Asia with SE Asia.

The geography of east Asia means that (LCC)s cannot serve the entire region with existing narrow body technology, although (LCC)s in some markets can come close. The final analysis in this report considers the ability of the Value Alliance to link NE Asia with SE Asia, and vice versa.

6 of the members have routes between NE and SE Asia. Vanilla Air (VNL) operates wholly within NE Asia but is examining a Taipei base to use 5th freedom rights to fly to SE Asia. Cebu Pacific (CEB) has the greatest number of flights between NE and SE Asia. This is probably unsurprising given the Philippines' geographical position, which is more between the regions. Tigerair (TGR) and Scoot (SCT) have approximately 10 routes between the regions.

Evaluating the opportunity is complex: routes are often to points where there is no service from another Value member, or there is limited frequency, and it may not enable a same-day connection, or a connection within reason. Some connections would be circuitous. But as noted earlier, it is too soon to evaluate the opportunity for the alliance.

* Outlook: long haul operator, member with central geography, could bring opportunity but also competition.

The Value Alliance faces the same conundrum as full service alliances: adding members brings opportunities but also competition. A member that is more central between the regions (such as in Hong Kong or Taiwan) could enable more links and connection opportunities.

Alternatively, that member may prefer to serve points on its own. (As (CAPA) has previously recorded, some Value members are expected to work with HK Express outside the (LCC) alliance organizations). More long haul operations could mean that an airline gains access to the strong regional hub of a partner in a different part of Asia. Alternatively, this could preclude cooperation between other members.

The opportunities for the Value members today are varied, but they do exist. With time, the synergies within the alliance should become greater. Most critically, this is all being developed with minimal cost, unlike the high joining and membership fees of full service alliances. While the gains may not seem as significant, neither are the costs.

Conclusion: As (CAPA) has previously concluded of the alliance:



* The main objective is for each member to increase their brand awareness across Asia-Pacific. The main objective is for each member to increase their brand awareness across Asia-Pacific and augment their distribution network through cross-selling. The alliance members pointed out that most of their brands are not well known outside their respective home markets.

* The members expect that the alliance will only generate a small increase in their interline traffic volumes (at least in the initial phase).

* Interline traffic for most members is a very small part of their overall business (for some it has even been non-existent) and most members do not expect that interline traffic will ever account for a large share of their overall traffic.

* The Value Alliance essentially offers its members a nothing-to-lose alternative for attempting to increase transit traffic and attract passengers in new markets who are now flying with other airlines. Even if the alliance only brings each member a +1% incremental gain in passenger traffic, it can be deemed a success, given the limited cost and the simplicity of the new offering.





January 2017: 737-8FE (34015, VH-VUD), ex-(ZK-PBG) entered service.

March 2017: News Item A-5: Air New Zealand (ANZ), Qantas (QAN) and 4 other airlines are establishing an association to lobby on common causes such as airport fees, taxes and infrastructure reform.



In a press release, the industry group said it would be self-funded and would advocate and pursue reform on public policy issues that impact the aviation sector and broader economy in the region. Airports, taxation and fees, access to efficient infrastructure and broader regulatory reform are cited as key issues.







Until 2010, (ANZ) and (QAN) were members of the Association of Asia Pacific Airlines (AAPA), which now has 16 members, including Japan's All Nippon Airways (ANA), Hong Kong flag carrier Cathay Pacific (CAT), Garuda Indonesia (GIA), Japan Airlines (JAS)/(JAI) and Singapore Airlines (SIA).



August 2017: News Item A-1: Virgin Australia (VOZ) has successfully amended its determination with Australia's International Air Services Commission to include its wholly owned low-cost subsidiary Tigerair Australia (TAU) on its USA route authority. 3 other applications to include Tigerair on New Zealand, Fiji, and Vanuatu routes were withdrawn.

"From information available to the Commission, it has reached the view that (TGR) is reasonably capable of obtaining the necessary approvals to operate on the USA route and of implementing the service in accordance with the Australia - USA air services arrangements," the Commission's Determination said.

Tigerair (TAU) currently operates within Australia domestically, with a fleet of 14 A320-200s and 3 737-800s. It previously provided services internationally to Denpasar, Indonesia, but these were suspended in early 2017 over regulatory issues.

(VOZ), for its part, currently offers services from Brisbane International, Melbourne Tullamarine and Sydney Kingsford Smith to Los Angeles International.





April 2018: Virgin Australia (VOZ) appointed Merren McArthur as (CEO) of Tigerair Australia (TAU).

Fleet:
(definitions)

Click below for photos:
TAU-A320 - 2017-01.jpg

January 2019:

1 737-800 (CFM56-7B) (34013, VH-VUB), 2015-11. 189Y.

2 737-800 (CFM56-7B) (VOZ) LEASED 2015-09. 189Y.

1 737-8FE (34015, VH-VUD), EX-(ZK-PBG) ENTERED SERVICE 2017-01. 189Y.

2 A319-100 (V2524-A5), (TCI) LEASED.

2 A320-200 (V2527-A5). 180Y.

1 A320-232 (V2527-A5) (2982, VH-VPF), (RBS) AEROSPACE LEASED 2009-09. 180Y.

9 A320-232 (V2527-A5) (3275, VH-VNC, 2007-10; 3296, VH-VND, 2007-11; 3332, VH-VHF, 2007-12; 3734, VH-VNH 2009-01; 5218, VH-VNQ - - SEE ATTACHED - - "TAU-2013-07 - TIGERAIR INTRO;" 5900, VH-VNR, 2013-12), FOR TIGERAIR AUSTRALIA (TAU) OPERATIONS. 180Y.

Management:
(definitions)

Click below for photos:
TAU-1-ROB SHARP-2014-03
TAU-3-ADAM ROWE-2014-06
TAU-7-CARLY BREAR - 2013-12

CHIN YAU SENG, CHIEF EXECUTIVE OFFICER (CEO) TIGERAIR (TGR) HOLDINGS, EX-(SLK) (2011-11).

KOAY PENG YEN, (CEO) TIGERAIR GROUP.

MERREN MCARTHUR, CHIEF EXECUTIVE OFFICER (CEO) TIGERAIR AUSTRALIA (2018-04).

ROB SHARP, CHIEF EXECUTIVE OFFICER (CEO) TIGERAIR AUSTRALIA (TAU).



CHRIS WARD, CHIEF EXECUTIVE AUSTRALIAN OPERATIONS.

CAPTAIN CHRIS MANNING, SAFETY ADVISOR (2011-07).




DAVE NARKER, HEAD OF MAINTENANCE.

WARREN GRAVELL, HEAD OF OPERATIONS.

ADAM ROWE, COMMERCIAL DIRECTOR (2014-06).
Adam is responsible for all commercial aspects of (TAU), including revenue management, network, marketing, communications, sales and distribution, and ancillary revenue.

MS CARLY BREAR, COMMERCIAL DIRECTOR, EX-(JT2)/(EZY), RESIGNED (2014-06).
December 2013 Interview by "Routesnews" Lucy Siebert:
Tigerair Australia (TAU) has been going about the business of opening a new base in Brisbane and realigning its network. (TAU) Commercial Director, Carly Brear explained more to Lucy Siebert.

It has been a year of dramatic change for low-cost carrier (LCC) Tigerair Australia (TAU). In that time, a new (CEO), Rob Sharp has come on board, while a re-brand and new livery followed in July. Just three days after the new look was revealed, it was confirmed Virgin Australia (VOZ) would be taking a 60% stake in (TAU).











While the re-branding was aimed at communicating how (TAU) has changed since the dark days of 2011, Brear said operational consistency and service delivery are now its core areas of focus. Within the Tigerair team, it is now all about the customer, she added, who are primarily the leisure, budget market. From a network perspective, the focus is on right sizing capacity to demand and utilizing existing airplanes more efficiently.









Competitive advantage





The Yorkshire-based airline Jet2.com (JT2) had small beginnings but has gone from strength to strength, now competing head to head with the likes of easyJet (EZY) and Ryanair (RYR) on leisure routes to Europe. It also operates seasonal charters to North America and has a successful tour operating division.







The re-brand, in July of this year, was an important step, said Brear, but nailing the joint venture (JV) with Virgin Australia (TAU) has really ensured Tigerair Australia (TAU) has the financial backing to move forward.

While its partner, Virgin Australia (VOZ) and Qantas (QAN) might be slugging it out on the media over the state of the Australian airline market, Brear said the Tigerair Australia (TAU) team is just happy to focus on its core leisure, or first-time flyer market, by opening up new or under-served domestic markets.



So while the war of words between the big two Aussie carriers is likely to continue for some months to come, you can expect Tigerair Australia (TAU) to be going quietly about expanding budget travel options for more people in Australia.

 
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