Woo-Hoo! Another airline bases itself outside of SYD! (Merged)
Evertonian
Thread Starter
Woo-Hoo! Another airline bases itself outside of SYD! (Merged)
Fares to fall as city sinks its claws into Tiger
Mathew Murphy
May 3, 2007
MELBOURNE will become the Australian home of budget carrier Tiger Airways, in a decision set to create hundreds of Victorian jobs and spark a price war.
The Singapore Airlines-backed carrier will today announce plans to establish its headquarters at Tullamarine. Avalon Airport is believed to have been overlooked because of its distance from the CBD.
The decision will set off a discount price war in the domestic airline market with Tiger promising to beat the prices set by Jetstar and Virgin Blue.
Jetstar pre-empted the announcement this week by selling 30,000 domestic route tickets at $3 each to its customers.
Sources confirmed to The Age that Melbourne's bid was considered superior to the other states. Melbourne had been in a "neck-and-neck" race with Brisbane to secure Tiger.
"It has been decided, Tiger will be let out of its cage in Melbourne," one source said.
Today's announcement will provide sweet revenge for Melbourne after it lost out to Brisbane in its bid to secure Virgin Blue's headquarters in 2000.
The decision, expected to be announced by Tiger's chief executive, Tony Davis, will create at least 1000 jobs in Victoria, with the airline believed to be scouting for pilots and cabin crew across the state.
Tiger, which is 49 per cent owned by Singapore Airlines, will require space at Tullamarine to house five aircraft. The fleet is expected to grow to about 20 in the years ahead. Virgin Blue operates with about 50 planes; Jetstar has about 25.
Melbourne Airport would not comment on the decision but confirmed it had "plenty of room" at Tullamarine for Tiger.
It is expected Tiger will initially offer services from Melbourne to Sydney, Brisbane, Canberra and Adelaide.
As part of Jetstar's promotion, it also began offering from midnight last night 100,000 tickets for $3 for domestic flights and tickets to Honolulu, Bangkok and New Zealand during restricted times with the purchase of another Jetsaver fare.
The "take a friend" promotion meant seats for selected flights and times in June, July, October and December allowed a second seat on the same flight for $3.
The airline could be ready for take-off in the domestic market within months. Before that happens it needs to obtain its Air Operators Certificate from the Civil Aviation Safety Authority.
A spokeswoman from CASA said Tiger's application had been received but declined to say where the process was at.
Three weeks ago, CASA said it had not received a formal application by Tiger and that it could take up to five months to process an application and issue a licence.
The airline has been given approval by the Foreign Investment Review Board to establish an Australian subsidiary.
It is not known what incentives the State Government offered Tiger but it has been lobbying hard to woo Tiger to Melbourne. The Government refused to comment on whether it knew about the airline's decision.
Sir Rod Eddington, the former chief executive of Cathay Pacific, Ansett and British Airways and now head of the Victorian Major Events Company, said the decision was "a real coup for Victoria".
With DANIELLA MILETIC
Yes, sweet revenge indeed! All over town people were high fiving each other!
Mathew Murphy
May 3, 2007
MELBOURNE will become the Australian home of budget carrier Tiger Airways, in a decision set to create hundreds of Victorian jobs and spark a price war.
The Singapore Airlines-backed carrier will today announce plans to establish its headquarters at Tullamarine. Avalon Airport is believed to have been overlooked because of its distance from the CBD.
The decision will set off a discount price war in the domestic airline market with Tiger promising to beat the prices set by Jetstar and Virgin Blue.
Jetstar pre-empted the announcement this week by selling 30,000 domestic route tickets at $3 each to its customers.
Sources confirmed to The Age that Melbourne's bid was considered superior to the other states. Melbourne had been in a "neck-and-neck" race with Brisbane to secure Tiger.
"It has been decided, Tiger will be let out of its cage in Melbourne," one source said.
Today's announcement will provide sweet revenge for Melbourne after it lost out to Brisbane in its bid to secure Virgin Blue's headquarters in 2000.
The decision, expected to be announced by Tiger's chief executive, Tony Davis, will create at least 1000 jobs in Victoria, with the airline believed to be scouting for pilots and cabin crew across the state.
Tiger, which is 49 per cent owned by Singapore Airlines, will require space at Tullamarine to house five aircraft. The fleet is expected to grow to about 20 in the years ahead. Virgin Blue operates with about 50 planes; Jetstar has about 25.
Melbourne Airport would not comment on the decision but confirmed it had "plenty of room" at Tullamarine for Tiger.
It is expected Tiger will initially offer services from Melbourne to Sydney, Brisbane, Canberra and Adelaide.
As part of Jetstar's promotion, it also began offering from midnight last night 100,000 tickets for $3 for domestic flights and tickets to Honolulu, Bangkok and New Zealand during restricted times with the purchase of another Jetsaver fare.
The "take a friend" promotion meant seats for selected flights and times in June, July, October and December allowed a second seat on the same flight for $3.
The airline could be ready for take-off in the domestic market within months. Before that happens it needs to obtain its Air Operators Certificate from the Civil Aviation Safety Authority.
A spokeswoman from CASA said Tiger's application had been received but declined to say where the process was at.
Three weeks ago, CASA said it had not received a formal application by Tiger and that it could take up to five months to process an application and issue a licence.
The airline has been given approval by the Foreign Investment Review Board to establish an Australian subsidiary.
It is not known what incentives the State Government offered Tiger but it has been lobbying hard to woo Tiger to Melbourne. The Government refused to comment on whether it knew about the airline's decision.
Sir Rod Eddington, the former chief executive of Cathay Pacific, Ansett and British Airways and now head of the Victorian Major Events Company, said the decision was "a real coup for Victoria".
With DANIELLA MILETIC
Yes, sweet revenge indeed! All over town people were high fiving each other!
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Buster..I had to check and make sure it was not April 1st....LOL
Congratulations on the news although I think Melbourne was a shoe in because Brisvegas has not got electricity on yet.
But you guys really have to get some outside interests apart from Bonnydoo and Phillip Island if you were high fiving each other because of this...
Congratulations on the news although I think Melbourne was a shoe in because Brisvegas has not got electricity on yet.
But you guys really have to get some outside interests apart from Bonnydoo and Phillip Island if you were high fiving each other because of this...
Evertonian
Thread Starter
I hope you're referring to me...I really like the irony of being called a loser, by someone whose nickname is Soldier of Fortune!
Actually Lobee...it might've been for the rain...
Actually Lobee...it might've been for the rain...
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Jetstar pre-empted the announcement this week by selling 30,000 domestic route tickets at $3 each to its customers.
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It`s not predatory pricing.
Predatory pricing is where two entities conspire to price out another. Now if Qantas start a $3 'sale', then the ACCC will have to investigate. If Virgin did it, then there might be a case also. However given how much they hate each other, both companies should be able to get away with it.
But they have classed it as a sale. And as there normal marked price is still the same, ACCC can sit in there office and continue to do nothing.
Another question. Why should an overseas operator be given any kind of special treatment or assistance? Compass, Impulse, Ozjet, all owned by Australian`s. I don`t remeber the ACCC helping anyone of them out in anyway. Bashing the Qantas group just for the sake of it is getting a bit tiresome. They are after all, an Australian company, atleast for the time being.
Predatory pricing is where two entities conspire to price out another. Now if Qantas start a $3 'sale', then the ACCC will have to investigate. If Virgin did it, then there might be a case also. However given how much they hate each other, both companies should be able to get away with it.
But they have classed it as a sale. And as there normal marked price is still the same, ACCC can sit in there office and continue to do nothing.
Another question. Why should an overseas operator be given any kind of special treatment or assistance? Compass, Impulse, Ozjet, all owned by Australian`s. I don`t remeber the ACCC helping anyone of them out in anyway. Bashing the Qantas group just for the sake of it is getting a bit tiresome. They are after all, an Australian company, atleast for the time being.
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'smoker
I believe that one operator can engage in predatory pricing against another, and this industry has shown it before.
Remember a stoush between Qantas and Virgin Blue regarding the Adl-Bne route many years ago? As usual, the ACCC finding arrived so late that the issue was no longer relevant, and the penalty was a strict instruction not to do it again.
I believe that one operator can engage in predatory pricing against another, and this industry has shown it before.
Remember a stoush between Qantas and Virgin Blue regarding the Adl-Bne route many years ago? As usual, the ACCC finding arrived so late that the issue was no longer relevant, and the penalty was a strict instruction not to do it again.
bizzybody. The AOC you have seen is for Tiger - Singapore. All foreign operators operating into Australia require an Australian AOC.
There will be a seperate AOC for operations within domestic Australia.
There will be a seperate AOC for operations within domestic Australia.
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When I see petrol prices going down at the pump two days before a long week end and on Thursday mornings, THEN and ONLy THEN shall I have confidence in the ACCC ensuring there are no anti-competetive practises in the aviation industry !
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we booked 2 return flights today with Jetstar, Sydney to Vietnam for September for $915 including all taxes. Cheap as chips!!!!
Last edited by wessex19; 3rd May 2007 at 04:12.
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I see this entry of Tiger into Australia's domestic aviation scene as one that will follow the likes of Virgin Blue.
Firstly starting off as just a domestic operator, then after a while, will expand into the international routes, then operate (amongst others) the sort after Australia to West Coast USA.
Now isn't that what they (being Singapore Airlines) were after all along?
Cheers FD
Firstly starting off as just a domestic operator, then after a while, will expand into the international routes, then operate (amongst others) the sort after Australia to West Coast USA.
Now isn't that what they (being Singapore Airlines) were after all along?
Cheers FD
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Yes. I wonder how much Romulus can reveal about that?
Not much. We'll continue to do whatever we can to make it work for them. If there's one aircraft type AAES/JHAS is set up for more than any other the A320 is it.
Not much. We'll continue to do whatever we can to make it work for them. If there's one aircraft type AAES/JHAS is set up for more than any other the A320 is it.