Wirraway
24th Aug 2004, 04:05
"The Straits Times" Interactive
Tiger to soar with a roar a month ahead of schedule
The second budget carrier starts flying early next month to Bangkok thrice daily, followed by Phuket and Hat Yai
By Karamjit Kaur
TIGER Airways has received the official nod to begin commercial services out of Singapore and will take to the air early next month, at least a month ahead of schedule.
It will start with three flights a day to Bangkok, said its chief executive Patrick Gan, without disclosing the date of the maiden flight.
Speaking to the media yesterday, shortly after the airline received its Air Operator's Certificate from the Civil Aviation Authority of Singapore, he was also tight-lipped about how much it would be charging travellers, but promised they would be 'impressed' by the fares.
He would only say that Tiger's average fare would be about 40 per cent less than the average lowest fare of full-service airlines.
At the moment these carriers are charging about $170 to Bangkok with conditions, such as setting a minimum on the number of people travelling together.
After Bangkok, the airline, which is 49 per cent-owned by Singapore Airlines, will fly to two more cities in Thailand, Phuket and Hat Yai.
It intends to have up to 10 destinations by September next year, and 15 by the end of second year of operations, said Mr Gan, who declined to name the cities for competitive reasons.
The carrier will be Singapore's second budget start-up. Low-cost carrier Valuair started operating in May. A third airline backed by Australia's Qantas, is expected to take off from the Republic before the end of the year.
Tiger will compete not just against Singaporean, Thai, Malaysian, Indonesian and Philippine low-cost players but also with full-service airlines, which slashed their fares when Valuair entered the market.
Asked if he was expecting the same reaction, Mr Gan said: 'We're ready for any price war...and we're very confident of the fares we have.'
He added: 'For a low-cost carrier flying within a four-hour radius, nothing else matters.'
Like AirAsia, his carrier will stagger what it charges, with early birds paying the least.
To keep its costs down, the airline - which has taken delivery of two new Airbus 320 aircraft and has two more coming by year-end - plans to sell eight out of every 10 tickets online.
Tickets can also be bought at selected Singapore Post outlets and AXS payment stations among other places.
For a start, passengers will fly out of Changi Airport's Terminal 1. Operations will eventually be moved to the new budget terminal, to which Tiger has committed. The $45 million building will be ready in 2006.
Mr Gan revealed that Tiger aims to win as many as 200,000 passengers by the end of this year and is gunning for an annual growth of between 25 and 35 per cent over the next five years.
It expects to be profitable within a year or two of taking off, he added.
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Tiger to soar with a roar a month ahead of schedule
The second budget carrier starts flying early next month to Bangkok thrice daily, followed by Phuket and Hat Yai
By Karamjit Kaur
TIGER Airways has received the official nod to begin commercial services out of Singapore and will take to the air early next month, at least a month ahead of schedule.
It will start with three flights a day to Bangkok, said its chief executive Patrick Gan, without disclosing the date of the maiden flight.
Speaking to the media yesterday, shortly after the airline received its Air Operator's Certificate from the Civil Aviation Authority of Singapore, he was also tight-lipped about how much it would be charging travellers, but promised they would be 'impressed' by the fares.
He would only say that Tiger's average fare would be about 40 per cent less than the average lowest fare of full-service airlines.
At the moment these carriers are charging about $170 to Bangkok with conditions, such as setting a minimum on the number of people travelling together.
After Bangkok, the airline, which is 49 per cent-owned by Singapore Airlines, will fly to two more cities in Thailand, Phuket and Hat Yai.
It intends to have up to 10 destinations by September next year, and 15 by the end of second year of operations, said Mr Gan, who declined to name the cities for competitive reasons.
The carrier will be Singapore's second budget start-up. Low-cost carrier Valuair started operating in May. A third airline backed by Australia's Qantas, is expected to take off from the Republic before the end of the year.
Tiger will compete not just against Singaporean, Thai, Malaysian, Indonesian and Philippine low-cost players but also with full-service airlines, which slashed their fares when Valuair entered the market.
Asked if he was expecting the same reaction, Mr Gan said: 'We're ready for any price war...and we're very confident of the fares we have.'
He added: 'For a low-cost carrier flying within a four-hour radius, nothing else matters.'
Like AirAsia, his carrier will stagger what it charges, with early birds paying the least.
To keep its costs down, the airline - which has taken delivery of two new Airbus 320 aircraft and has two more coming by year-end - plans to sell eight out of every 10 tickets online.
Tickets can also be bought at selected Singapore Post outlets and AXS payment stations among other places.
For a start, passengers will fly out of Changi Airport's Terminal 1. Operations will eventually be moved to the new budget terminal, to which Tiger has committed. The $45 million building will be ready in 2006.
Mr Gan revealed that Tiger aims to win as many as 200,000 passengers by the end of this year and is gunning for an annual growth of between 25 and 35 per cent over the next five years.
It expects to be profitable within a year or two of taking off, he added.
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