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You cant run a safe airline when you charge $49 MEL-SYD, it should be illegal !
True, but you do realise that only maybe the first 40 seats are sold at that price, the next 30 at $59, the 20 after that at $69, etc etc
It's the same way every airline sells their seats, Tiger could just afford to go lower as they definitely had the lowest cost base..
Well this where Tiger failed. Very few pax were prepared to pay more than the base $49 fare , for example. When the $49 fare sold out it was often no more to fly DJ/JQ/QF. As a result the average fare level for Tiger was lower than needed. Then Tiger alienated themselves from any regular flyer with poor service/reliability.
In hindsight they should have focused on SYD which has a greater population based and started ops with SYD-MEL, SYD-OOL, SYD-BNE, SYD-CNS, SYD-HBT
They should have also been more transparent with charges and been easier to get along with. Pax dont like airlines that are not consumer friendly
$49 was too cheap. Totally unsustainable