More new jets for Tiger!

[StripeyJet]

From Channel News Asia!

"SINGAPORE : European aircraft maker Airbus said it will sell eight A320 jets to Singapore-based regional budget carrier Tiger Airways, with the first of the 180-seater planes to be delivered in March 2006.

Airbus did not say how much the deal is worth, but aviation industry sources in Singapore estimated its value at around US$500 million.

It marks the first time that Tiger Airways will be acquiring its own planes instead of leasing since it started flying in September last year.

Tiger Airways is 49 percent-owned by Singapore Airlines and currently has a fleet of four leased A320s. It flies to Indonesia, Macau, the Philippines, Thailand and Vietnam.

"We are delighted to be adding further Airbus A320 aircraft to our rapidly expanding fleet which will enable us to consolidate our position as Singapore's largest low-fare airline," said Tony Davis, the airline's chief executive.

"The A320 has proved popular with both passengers and crews of Tiger Airways and provides the airline with the economics and range necessary for our continued success," he added in a statement issued by Airbus.

The A320 is popular with low-cost carriers worldwide, accounting for 81 percent of all aircraft ordered last year by discount airlines, according to Airbus."


The big question now.... given that Tiger is going to be bigger than JetstarAsia and Valuair combined (and soon), will it have them both for breakfast this year or next??

Grrrrrrrr....

Stripey

[ScootCargoOps]

Does SQ have a share in Jetstar Asia as well?

[StripeyJet]

Not as far as I know - it's Qantas backing JSA.

[NZLeardriver]

Temasek holdings owns 19% of Jetstar Asia. Temasek is the government investment arm and also owns 51% of SIA .

[Tutaewera]

Temasek owns a chunk of almost every sizeable foreign business in SIN. You can't do the deal without them getting a chunk - rules of the game... So that shouldn't give any bias.

Good luck to all...

Meow

:E

[SIDSTAR]

Good for Tiger. They seem to be the only real LCC of the three in Singapore. Word in financial circles is that Valuair have enough cash left to last about two months and after that it's byye-bye unless Father Christmas comes early.

Rumours on the street that all is not well inside Tiger with lots of new management arriving in the recent past. That usually means some will be leaving shortly.

JetstarAsia seems to have bitten off more that it can chew. They are now leasing pilots out to anyone who'll have them and rumour has it that Valuair may be about to follow suit. Just shows they haven';t a clue about how to organise an LCC. How long will Qantas hang in there? Or how big is Dixon's ego and how much will it cost Qantas before they seethe light and cut their losses.

[asianfly]

Tiger, given its links to SIA, has gone the favourable ear of the aviation authorities in Singapore...and thus access to routes. Valuair are muddling around and dont seem to know quite what they are (LCC or a 'value' carrier, whatever the hell that is). JetstarAsia has got the ****ty end of the stick when it comes to routes. It does very well on the ones it has, but Singapore, like other countries in the region, only wants competition on its terms. Thus, the days of unbridled competition ala euroland are quite a while away. I always get the feeling that JetstarAsia is being punished by proxy for the refusal of the Australian authorities to let SIA fly the transpacific route.

[SIDSTAR]

Asianfly,

And why should Singapore be any different than Oz when it comes to this sort of thing? If Canberra can play it that way so can little places like SIN. The unions in Qantas have already brought down 3 or 4 airlines there so Qanta's time can;t be much longer. The difference in Singapore is that the government will never allow ALPA-S to control any airline the way it happens in Oz.

Free Competition is always in the eye of the beholder. Look at the USA. Father and Champion of Free enterprise and the free market - as long as it is firmly loaded towards their side. All big powers do it so Oz and SIN trying it on is now new.

What is certain though is that a genuine open skies policy really does separat the men from the boys and when (if??) that ever happens in SE Asia it'll be interesting to see which carriers really are Low Cost. My bet is that Air Asia and Tiger will be two of the biggest, probably with a few Indian one and JetstarAsia will be far behind. After all which carrier lost 25 million SIn $ in the first 3 months of operation??

[asianfly]

Sidstar
You know as well as I do how aviation policy is shaped more by government policy than by competitive factors. I agree with you that Singapore is entitled to do what it likes with regards to avialtion policy. Indeed it already does (SIN-KL for example...a nice duopoly for both MAS and SIA). Likewise with Australia.
Alas, it is the customer who gets screwed over (on the above SIN-KL sector or indeed SYD-LAX). I for one am all for LCCs regardless of who owns them or where they are registered. I just want to get from A to B without getting ripped off. Thankfully, the SIN-MNL route was opened recently and both Tiger and JetstarAsia have good loads. I presume yields are good and fares are finally more affordable.
Finally, I agree with you on Tiger and Air Asia becoming the Asian equivalents of Easyjet and Ryanair. Tiger by virtue of its parent and the desire of the political powers wanting a viable LCC and AirAsia simply becuase they are already the biggest and most powerful.
As for the US airlines....the idea of paying a fare on a so called 'full service' carrier is one I discarded a long time ago. At least the big Asian full service carriers have not forgotten the 'service' part and still offer a great ride.

Asianfly