SQ might have deep pockets, but they are not injecting anymore capital into Tiger. SQ are not going to keep flogging a dead horse, and since Tiger have pushed past -40million, no more money for Tiger they say. Going public is the only chance Tiger has to fund the next 50+ A320's that need to be financed within the next 3-4yrs.
there is no way that tgr oz are making money with 6 a/c at the prices they charge for tickets!
You think that every seat is sold sub $50? Sure, mabye on some dead days like Tue/Wed there is a greater availability of these, but its not easy to grab a $40 fare the rest of the week. Dont forget about Baggage/Seat/Oversize/Sports/CreditCard fees. As well as Ancillary revenue such as Buy on Board and Travel Insurance. Plenty of ways for Tiger to earn revenue besides the $39 fares. Tiger also get signifcantly more incentives than the others, particulary from the Adelaide Government who are paying Tiger to be there. Plus I heard that they got a good deal from Tulla and Brumby. See how they operate behind the scenes in comparison to other LCC and you get the drift of how low their cost base is.
Al E. Vator, Kev9..dont worry, Muff is just one of those 15 year old kids who just happens knows everything bout' the industry. . .
