“The Ryanair of Australia”?

Peter Negline from low cost outfit Tiger Airlines is here to talk about the challenges for new airline business models.

He expands on the benefits of Low cost carriers to local economies:

• Tourism increase
• Cross border exchange
• Economy boost
• Job creation
• Growth in second homes
• Family travel reunions
Peter tells us that the as far as Asia is concerned, the LCC market is still in its infancy – currently only 5% of Asian passengers have travelled on LCCs.

Tiger see themselves as the “Ryanair of Asia”, with Australia as their primary focus.

They’ve only got one aircraft type – A320s with 180 high density seating capacity.

It’s easy to believe Peter when he says that their business model thrives on its simplicity.

His slides show Tiger’s new focus on Australian routes but he also announces their intention to launch a new Chinese route over the next few months.

Slide 1

Slide 2

He outlines the innovations that Tiger pride themselves on:

• Checking in equipment in advance via the internet.
• Luggage upsizing.
• Credit cards
• Sponsored Cabin Crew uniforms

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2 Responses to “The Ryanair of Australia”?

  1. Christopher E. Sprauve 3 September, 2007 at 9:51 pm #

    This model is derived from the “standard” LCC start up airline model which suggest common fleet type, narrow bodied aircraft, strong utilization of technology to minimize labor and overhead and short-hauls (RYANAIR).

    I agree that we have just seen the beginning of start up airlines “world-wide”, as the current legacy carriers (Lufthansa, Singapore, United Airlines, American, British etc.) have failed in their efforts to discourage competition as more and more flyers are becoming dissatisfied with the overall passenger handling process of these International carriers as they fight to “streamline” their complex processes.

    Huge mega alliances such as “STAR ALLIANCE, ONE WORLD and SKYTEAM” while originally successful, are proving to be a challenge as the different security, national, international and IATA regulations impact their respective customer handling procedures and are resulting in record customer disatisfaction complaints. Tiger Airlines appears to have a great market as well as sound business plan, but using the A-320 with a high density seating over 180 (almost 30 more (17%!) seats than it’s counterparts here in the United States…way too small seats for any market other than the Asian markets.

    I am curious as to how Tiger Airlines will address the obvious fall out regarding:
    1)Weight Restrictions due to the warm climate of it’s destination cities.
    2)Oversales & Protection
    3)Interline Agreements both Customer and Baggage
    4)Excess Baggage left behind due to capacity and/or weight restrictions
    5)Customer satisfaction—The short-range model for an A320 is for flights 4 hours or less. With the aircraft packed at 180 seats (possible record for A320), the routing map suggest that almost all of the flights originating in Austrailia are in excess of 4 hours. Aside from people needing to stand in the aisle or walk around in order to stretch, issues such as In-flight services (including cabin cleanliness) as well as the common “bathroom line” experience becomes a challenge on a single-aisle aircraft. This compares to a market where QANTAS and the former Ansett Austrailia flew the more comfortable 747′s at fairly economical prices with far more “lift” than the A320

  2. Christopher Dye 18 September, 2007 at 11:51 am #

    Why no report or comment yet on the Wall Street Journal’s piece on Saturday claiming that Airbus has finally switched to an all-composite fuselage for the A350 (composite panels over composite frame (instead of metal)?

    Christopher D. Dye 9/18/07

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