Taking on the Kangaroo
It was a bit of surprise to read in the news today that Tiger Airways is venturing into the Australian market as it moves to set up a domestic carrier there.
There are a few things that are particularly amusing about this story being the big aviation enthusiast that I am, and some things are rather interesting.
Take a look at the ownership structure of Tiger Airways: Singapore Airlines (49%), Indigo Partners LLC (24%), Irelandia Investments Ltd. (16%), and Temasek Holdings Pte. Ltd. (11%).
With a lineup like that, announcing this new foray into the already competitive domestic Australian market which is now dominated by Low Cost Carriers (Virgin Blue, JetStar which is part of Qantas), one can only begin to wonder what competitive advantage Tiger Airways would have, AND if it is trying to achieve something else just beyond establishing itself in Australia.
Don't get me wrong, we know how the "legacy" carriers (those of a more traditional structure, the antithesis of an LCC) have fared in Australia: Ansett is no more, Compass failed twice, and on domestic routes Qantas is certainly feeling the heat from LCC's. So if there is room for another carrier, the LCC route is the one that makes the most sense.
Within just the last few months, we have seen "Low-Cost, Long-Haul" take wing from Asia. Oasis Hong Kong finally took to the skies to London and now plans to launch flights to the San Francisco Bay area (Oakland to be exact). The pioneer of LCC's in Asia, AirAsia's Tony Fernandes is now onboard the LCLH bandwagon as well with his Air Asia X plans. Also don't forget JetStar is going into the LCLH business with flights to Kuala Lumpur and Honolulu.
So with the ever changing landscape of the aviation market in Australia, 49% ownership from Singapore Airlines which has tried relentlessly to get rights out of Australia to the US, and failed almost in dramatic fashion, you have to ask yourself is this FINALLY going to be the way that Singapore Airlines gets a hold (via Tiger Airways) on the route it has always sought? Granted it wouldn't be Singapore Airlines aircraft, but it might be the only way it can get access to this route.
Curtis Bergh
ArchivesThere are a few things that are particularly amusing about this story being the big aviation enthusiast that I am, and some things are rather interesting.
Take a look at the ownership structure of Tiger Airways: Singapore Airlines (49%), Indigo Partners LLC (24%), Irelandia Investments Ltd. (16%), and Temasek Holdings Pte. Ltd. (11%).
With a lineup like that, announcing this new foray into the already competitive domestic Australian market which is now dominated by Low Cost Carriers (Virgin Blue, JetStar which is part of Qantas), one can only begin to wonder what competitive advantage Tiger Airways would have, AND if it is trying to achieve something else just beyond establishing itself in Australia.
Don't get me wrong, we know how the "legacy" carriers (those of a more traditional structure, the antithesis of an LCC) have fared in Australia: Ansett is no more, Compass failed twice, and on domestic routes Qantas is certainly feeling the heat from LCC's. So if there is room for another carrier, the LCC route is the one that makes the most sense.
Within just the last few months, we have seen "Low-Cost, Long-Haul" take wing from Asia. Oasis Hong Kong finally took to the skies to London and now plans to launch flights to the San Francisco Bay area (Oakland to be exact). The pioneer of LCC's in Asia, AirAsia's Tony Fernandes is now onboard the LCLH bandwagon as well with his Air Asia X plans. Also don't forget JetStar is going into the LCLH business with flights to Kuala Lumpur and Honolulu.
So with the ever changing landscape of the aviation market in Australia, 49% ownership from Singapore Airlines which has tried relentlessly to get rights out of Australia to the US, and failed almost in dramatic fashion, you have to ask yourself is this FINALLY going to be the way that Singapore Airlines gets a hold (via Tiger Airways) on the route it has always sought? Granted it wouldn't be Singapore Airlines aircraft, but it might be the only way it can get access to this route.
Curtis Bergh
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