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Tiger Airways applies to Operate New Low Cost Domestic Australian Airline

Travel News Asia Monday, 12 February 2007

Low cost, Singapore-based airline, Tiger Airways is seeking regulatory approval to establish a new domestic Australian airline in competition with Virgin Blue and the Qantas Group.

Tiger Airways President and Chief Executive Officer, Tony Davis said the airline was ready to enter the market and deliver Australians genuine low fares, competing in a market which has returned to a cosy duopoly and seen fares increase.

“Fares are too high in Australia. We see the opportunity to deliver consistently low fares on all our routes. Unlike others in this market, we won’t be a low cost airline selling high fares. We’ll be low cost and very low fare.”

“The introduction of Tiger Airways services between Darwin and Singapore has been a major boost to regional tourism in the NT. We’re consistently selling fares on our international flights cheaper than domestic specials offered by the duopoly,” Mr Davis said.

The Tiger Airways business model is based on Europe’s successful Ryanair, which uses its very low cost base to deliver very low fares. “We certainly benefit from the experience and knowledge available to us through having the Ryan family as investors in Tiger Airways,” Mr Davis said.

Mr Davis outlined the company’s plans to Federal Ministers last week and the airline has now commenced the process to obtain an Australian Air Operator’s Certificate (AOC).

In addition to the application to the Civil Aviation Safety Authority (CASA) for the AOC, Tiger Airways has advised the Foreign Investment Review Board (FIRB) of its intent to establish a new Australian domestic airline as part of the Tiger Airways Group.

Mr Davis said that Tiger Australia’s inception would create up to a 1,000 new jobs, both direct and indirect, across Australia.

Tiger Airways has already established a successful international presence in the Australian market, currently operating four times a week from Darwin to Singapore, and will commence a new service between Perth and Singapore on March 23rd.

See other recent news regarding: Airlines, Tiger Airways

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