Ouch! TigerAir Losing $2M a Week

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A loss of $171K per frame, per week is a big number. If you applied that over the QF group fleet (assuming 335 frames?) the annual loss would be just shy of $3 Billion
 
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Never envisaged their business model being financially sustainable long term, with the next to nothing air fares constantly being spruiked by Tiger.
 
It appears that the airline industry is like the car industry - no way to make money without government support! Since there isn't a great deal of that in Australia, unless something radically changes, profits in airlines will be a thing of the past.

From what I've read, the majority of the world's airlines are unprofitable.
 
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Is the monetary loss per unit airframe particularly interesting or useful to anyone?

This can't be sitting well on the VA balance sheets, even if only 60% of the loss is attributable. Then again, red accounting seems to be par for course for all of the Australian-owned players in the game at the moment. I'm sure that other bigger competitor is looking at an average monetary loss of greater than $2M/wk.
 
AdMEL said:
This seems to back up my statement! Just to be clear, I meant US the country, not US Airways.
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I worked that bit out.....that's why I posted a link covering a good proportion of large USA airlines.

Can't provide any details on Australia as airlines aren't allowed to restructure here - apart from the majority foreign own ones.
 
Aussie_flyer said:
can you guys fly them a bit more, I need them for my JQ price beat guarantees
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I still find it mind-blowingly stupid that they bothered to go through the relaunch and ended up going from Tiger Airways to Tigerair, they knew it was losing money, they knew the brand had the cachet and appeal of a fart in an elevator and it had questions over its previous grounding by CASA yet they took all the pain of a rebrand that did not differentiate it from the previous brand. I still think a proper rebrand and PR blitz with an entirely new name and colour scheme, would have cost a bit, but possibly may have had a better chance to bring the customers in. Keeping TT separate from VA will probably be viewed in hindsight as a reasonably smart move.

At the moment the customers seem to be saying "no way will I ever fly on Tigerair full stop" or "only if they are significantly cheaper than Jetstar" (and even then grudgingly), once the flight time goes up past 1.5 hours or the fare hits 3 digits then a wall of buyer resistance seems to be hit. After all - we are talking about price sensitive low fare and often very discretionary spending here (visiting friends/family, going to football, positioning for status runs etc)
 
eastwest101 said:
I still find it mind-blowingly stupid that they bothered to go through the relaunch and ended up going from Tiger Airways to Tigerair, they knew it was losing money, they knew the brand had the cachet and appeal of a fart in an elevator and it had questions over its previous grounding by CASA yet they took all the pain of a rebrand that did not differentiate it from the previous brand.
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I thought that the best solution for Tiger overall would be a merger and rebranding into the Scoot brand. The parent of Tiger in Asia is Singapore Airlines who, wisely, when they started their new LCC, decided not to use the Tiger name. Rather than going with a slight rename from Tiger to Tigerair, the Scoot name would signify a fresh start and with connecting through fares, would open up a massive market for them. I say this as someone from Melbourne who has caught Tiger to Sydney in order to fly Scoot to Singpaore before. Scoot could then operate two sections, 777 long haul and A320 short haul, similar to Air Asia and Air Asia X.
 
I was interested to see the a320 listed in VAs fleet listing without any mention of TT
 
yohy?! said:
I was interested to see the a320 listed in VAs fleet listing without any mention of TT
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How many are listed? Don't forget that Skywest had a number of A320's in their fleet as well (it was 1 or 2 from memory).
 
eastwest101 said:
Keeping TT separate from VA will probably be viewed in hindsight as a reasonably smart move.

At the moment the customers seem to be saying "no way will I ever fly on Tigerair full stop" or "only if they are significantly cheaper than Jetstar" (and even then grudgingly), once the flight time goes up past 1.5 hours or the fare hits 3 digits then a wall of buyer resistance seems to be hit.
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Overhead conversation in QF business lounge between an EK pilot and what I assumed to be his son / teenager. Hilarious comment about Jetstar and Tiger (not my views!)

Kid - So who flies Virgin then?
Pilot - People who can't afford Qantas or are forced to fly them for work.
Kid - Jetstar?
Pilot - Bogans
Kid - Tiger
<pause>
Pilot - ummm not sure (gestures to iPad) but they certainly aren't paying for their seats, read this article about tiger....
 
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