There is no doubt that Tiger Australia is improving financially. Tiger were losing $10 million a month when they started in November 2009 for their first 4 months of operating here, which would have sent them to the wall if that continued (Tiger Singapore was profitable during this period), and with only 3 Aircraft during this period it seemed a disaster. This previous year shows a loss of around $2 million per month and considering they have bedded down their operations now. Putting into consideration extreme fuel prices, low demand in some months, I wouldn't think Tiger Australia would be fully responsible for that $22m loss, as those fuel prices would have hit harder up north when putting their network into the picture and the amount of longer haul flights TR does. Low demand seems to impacting harder up there, and Tiger Singapore has reduced alot of flights and pulled out of a few places whilst still retreating some of their Malaysian routes (AirAsia is doing the same too). But TR has been proven as significantly profitable considering their first ever profit managed to hit SG$40million.
Since then 8 months has passed and you could say they have doubled in size, Sydney has started, a new base has commenced, extra frequencies everywhere, shocking TV show showing their brand, more advertising, another A320 has landed in Melbourne, and Sheffield said their brand is growing and loads are growing. Chopping some low pax routes from Adelaide is a good start, looks like the Melbourne to Rockhampton service is gone, and Canberra looks as finished come next year. Getting rid of these in the short term will help acheive a profit sooner, returning to these ports when the brand is profitable and expanded in a few years would be more logical. I dont know if they are just in Canberra for strategic reasons, but they are to small to be sending their aircraft here, and the market is not great from Adelaide and Melbourne is also quite slow at times it has seemed. Adelaide to Hobart is another melon, released figures show its average loading is just less than 60%. They would be giving Virgin a headache in Adelaide. Killed them to Hobart, doing the same to Canberra, and to the Gold coast which was downgraded to E190 and is commonly canceled. All of a sudden 3 extra ADL-SYD sectors have popped up between JQ/TT which would be affecting DJ's 4/5 Daily more than their Melbourne ops. Yet Tiger now throwing in Brisbane by subsidizing Melbourne to Coolangatta is 1 Daily is suicide. You cannot grow this route to four daily slowly then just retreat one of the countries and Tiger most busiest route. I dont know the logic in this nor if this is the sign of a new Gold Coast base, but it is showing the full 3 Daily on weekends so I am skeptical about anymore additions.
Im no financial guru, but we might see a small profit from Tiger Australia for this current March09/March10 year. Otherwise it would be a smaller loss, possibly a loss bigger up north than down south seing fleet numbers are just about level at both. But who knows, they would be losing some significant amounts out of Malaysia and out of Sydney to Melbourne at the moment.
Last edited by Sunstar320; 30th Nov 2009 at 08:34.