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Old 20th Aug 2019, 12:10
  #10 (permalink)  
Rated De
 
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Tiger can’t do much should fuel rise. The risk here is what has happened in the past, when fuel went above one hundred, Tiger was losing fifty to sixty million.
This is precisely the problem with Low Fare Airlines: Very demand elastic and fuel price changes kill their demand.

As their target customer is fare conscious, they are price sensitive. Thus, Tiger (like Low fare airlines) can try to yield build by gently raising prices.
Should fuel price increases impact their cost structures, they find rising costs (with fuel price) combines with falling demand (a result of higher gasoline pump prices) generate the negative dual shock.
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