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Old 30th Nov 2009, 21:24
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Tiger thoughts

Sure are putting the cat among the pigeons,,,,,so to speak....
Now, ADL - CBR gone, well since when or are we talking next year?
No business traffic, well not exactly, I know of at least one businessman who flies TT every week, for the last 5 weeks, and he is not alone.
Bad publicity from the tv show, well some may see it like that, but many I talk to can see that its the stuuuupid punters who look dumb, not the airline,,,,
Interesting days ahead.
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Old 30th Nov 2009, 21:53
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Int Rights?

So how much of the airline will need to be Australian owned for them to get the right to conduct international flights?
SN
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Old 30th Nov 2009, 22:41
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51%.

As for the Airways programe being a bad idea - how simple minded some people are! Not everyone has tertiery education i guess. I can't be bothered explaining. Didnt the number of hits on their website after 1 week of airing sky-rocket?
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Old 30th Nov 2009, 23:21
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So if they need 51% AU ownership how would they go about that, float it or go for a private investor?
SN
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Old 8th Dec 2009, 18:56
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IPO couldn't come any sooner...

Well, clearly they are financially up **** creek

Tiger battles for a bite
BUDGET carrier Tiger Airways plunged to a $50.1 million loss last year as the Singapore-listed airlines group struggled to take a share of the Australian domestic market. The costs of operating in Australian skies also stripped $S20 million ($15.8 million) from the parent company's reserves, leaving the business with just $S13.2 million in available cash.
The group loss for Tiger Singapore and its cub Tiger Airlines Australia for 2008-09 amounted to $S50.8 million, reversing the previous year's $S9 million profit.
The annual accounts of Tiger Aviation Singapore, filed nine months late, show the company owed more than it owned, with liabilities at the end of March this year exceeding assets by $S109 million.
Group assets, held by both the Singapore and Australian businesses, were valued at $S187 million contrasted by liabilities of $S296 million.
Tiger Airways Singapore declared an operating profit of $S12.2 million, its second consecutive profit and a $3 million improvement on the previous year.
Group president Tony Davis said the Australian business was "negatively impacted by the adverse impact of record oil prices and foreign exchange volatility".
During the period, Tiger launched in Melbourne with three aircraft, opened a second base in Adelaide and incurred a $17 million loss on fuel hedging as jet kerosene prices soared to more than $US170 a barrel.
Revenue rose to $S384 million, an increase of $S74 million at a time when the business incurred a $S15 million rise in staff costs and a foreign exchange loss of $4 million.
Peter Harbison, a leading aviation commentator and head of the Centre for Asia Pacific Aviation in Sydney, said the carrier seemed committed to a long-term view.
Tiger Australia will switch from a holiday route operator to high yield routes. Having launched a Melbourne-Sydney service last July it will soon begin Melbourne-Brisbane flights.
It has also announced a Sydney-Gold Coast service.
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Old 9th Dec 2009, 00:24
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Sunstar320 - before you get too excited don't forget this was at STARTUP.
Given the fact that the period covers the commencement of the operation and simultaneously the period when oil prices went crazy and the economy was in freefall that was probably an excellent result.

Tiger are now operating not only the marginal ROK and MKY type sectors but also trunk routes and are becoming well established in a far more stable environment. I would suggest that contrary to your delight that the airline is "up **** creek", they are in pretty good shape, particularly when you consider they are backed by SQ and the Ryanair investors.

Funny how I recall the naysayers making similar 'doom' comments about Virgin and Jetstar.
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Old 9th Dec 2009, 06:05
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There are no initial startup costs associated with this loss, all these costs were covered before March 2008. The $15 million in staff costs would have been avoided if a certain somebody didnt screw with some staff, hence turnover numbers were extreme.

that contrary to your delight that the airline is "up **** creek"
Not the airline, the figures.

particularly when you consider they are backed by SQ
SQ have stated that they are not injecting anything into Tiger considering their debt.
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Old 9th Dec 2009, 13:21
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From MrSheffield
Not everyone has tertiery education i guess.
Clearly.
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Old 9th Dec 2009, 20:42
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I know of quite a few guy's that have been given jobs with Tiger recently, are they losing pilots or is this the expansion? With finances like that they must be shaky hey?
SN

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Old 20th Dec 2009, 05:48
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Whats up at Tiger?

Saw alot of AFP down at the Tiger Terminal today, looked on the dep/arr board and wow. Are they that low on crews that they are cancelling daylight flights and moving them to 2am? 7.45am Maroochy flight is only 17hrs delayed, same with the afternoon hobart flight, not moving till 3am.

With 5 A320's, just confusing as every aircraft is delayed for some reason. Anyone know?
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Old 20th Dec 2009, 10:35
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With 5 A320's, just confusing as every aircraft is delayed for some reason
easy. no cabin crew. Tiger f*k the cabin crew, cabin crew f*k the tiger. good on them. make a stance. they are slowly learning. too late probably.
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Old 20th Dec 2009, 20:33
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M.S
I don't know about too late. These guy's are starting up in a very volatile and agressive market. No one is going to cut them any slack at all. They want to have the lowest costs of any carrier and as such from time to time they will make sure that they are paying only what they have to.

I'm not saying they will make it to profitabilty but I will say that if they do there is no way they will fail from that point provided they are the carrier with the lowest cost base and therefore can offer the lowest fares. I think they have a long way to go to find a balance between fare prices and service as well.

With QF giving up share to J* and VB/VA hittiing QF where it hurts that may just leave enough space at the bottom of the tank for Tiger to get established and look out if they do.
SN
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Old 20th Dec 2009, 21:21
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From MrSheffield - "easy. no cabin crew. Tiger f*k the cabin crew, cabin crew f*k the tiger. good on them. make a stance. they are slowly learning. too late probably."

And by doing so destroy thousands of passengers' Christmas travel plans - have these lazy bu##rs no idea of the consequences of their actions?

If certain cabin crew (a small, bitter and badly advised minority) aren't happy then they should go - let them find out that the world actually doesn't owe them a living.
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Old 20th Dec 2009, 22:52
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I wouldnt call cabin crew doing 170+ hours per month lazy buggers. My understanding lots of crew burnt out - calling in sick / lots fed up -resigning and no coverage to replace them
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Old 21st Dec 2009, 17:42
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Tiger's Expectations look likely to take a dive

In the same way that Tiger Woods is in danger of losing his significant other, it would seem the airline that shares his name is also receiving the cold shoulder.

Singapore-based Tiger-Airways is pre-marketing an initial public offering to insitututional investors and Street Talk understands the size of the floast has already been significantly scaled back due to a lukewarm response.

The IPO prospectus is expected to be lodged in Singapore on Monday and reports that it will be in the region of upto $S500 million ($394 million) are seen as wide off the mark, with $200 million to $250 million considered more accurate.

Moreover, the float will not even be passed under the noses of Australian investors given the scaled-back approach.

About 95 per cent has been tagged for Singapore institutions and the remainder for the country's retail shareholders.

But offshore investors are unlikely to be concerned.

In fact, they may breathe a collective sigh of relief given talk around the town is that Tiger Airways has been priced on a multiple of 10 to 15 times forward earning for fiscal 2011 - fairly toppy when you consider its major comparable airlines, Virgin Blue and AirAsia trade on roughly six times.

Tiger Airways' chief executive Tony Davis, has enough to deal with already.

Significant risks for airlines at the moment include fuel costs, interest rates (think aircraft leases on this could) and foreign exchange (a large proportion of Tiger's operating cost base is denominated in US dollars whereas US dollar revenues do not constitute a major proportion of total revenue).

Also worth noting is that part of the raising proceeds will go towards returning capital to Tigers's major shareholders including Singapore Airlines, Ryanair, and Temasek, whose stakes will be reduced.

The move by these investors to duck participation in such as small IPO suggests they don't see it future as burning bright.


Tiger Airways need the funds.
The airline recorded a pretax loss of $S47.7 million for the year ended march 31 and most of that was from the start-up costs of Tiger's aggressive Australian expansion, according to its latest accounts.

An unsuccessful float would be music to Qantas's ears.
Street Talk, AFR 16 December 2009
My bold emphasis.
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Old 21st Dec 2009, 19:52
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Interesting results for the last half year, quite an improvement. Atlhough taking into account that the SIN base is still profitable which still leaves a larger loss for the Aussie base.
Tiger's total revenue for the six months ended Sept 30, 2009 was $206.1 million (US$146.3 million), representing an increase of 12.4 per cent over the same period last year.
It posted a net loss of $8.3 million for the six months ended Sept 30, 2009 - an improvement from $25.2 million loss in the same year-ago period.

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Old 21st Dec 2009, 23:52
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Tiger IPO Link

Hi guys

You can download the draft Tiger IPO Prospectus here.

O P E R A - Offers and Prospectuses Electronic Repository and Access

I haven't had time to digest the financials (yet) but here are some interesting bits:

Increased competition in the airline industry could harm our Company
The airline industry is highly competitive. One of our shareholders, Singapore Airlines (together with its wholly-owned subsidiary, SilkAir (Singapore) Private Limited (“SilkAir”)) is a significant competitor of Tiger Airways Singapore. We neither coordinate our routes nor have any commercial cooperation agreements with
Singapore Airlines or SilkAir. Our Company and Singapore Airlines have not sought or received any exemption from Singapore competition laws and regulations. We compete with Singapore Airlines and SilkAir on 15 of our
international routes. See “Business — Competition”.

Conflicts of interest may arise between certain of our substantial shareholders, certain of our Directors and our Company

There can be no assurance that conflicts of interest will not arise between certain of our substantial shareholders, certain of our Directors and our Company, and that such conflicts can be resolved. Conflicts of interest may arise between one of our controlling shareholders, Singapore Airlines (and its wholly-owned subsidiary, SilkAir), and us with respect to our operations and business opportunities.

In addition to our competition with Singapore Airlines and SilkAir, Singapore Airlines is the controlling shareholder of SIA Engineering Company Limited
(“SIAEC”), one of our major suppliers. Each of Mr. Chan Hon Chew, Mr. Koh Swee Lim and Mr. Teoh Tee Hooi is a nominee of Singapore Airlines on our Board of Directors. Mr. Chan is senior vice president (finance) and Mr. Teoh is senior vice president (corporate services) of Singapore Airlines, and Mr. Koh is senior vice president (commercial) of SIAEC. In addition, Mr. Chow Kok Wah, divisional vice president (engineering operations) of Singapore Airlines, serves on the board of directors of Tiger Airways Australia as a nominee of our Holding Company.

We may also face conflicts of interest between Temasek Holdings, the parent of another of our substantial shareholders, Dahlia, as Temasek Holdings is the majority shareholder of Singapore Airlines and a significant investor in certain of our suppliers, such as SATS and Starhub Ltd. Temasek Holdings is also in negotiations with the Singapore government on the sale of Changi Airport Group (Singapore) Pte. Ltd. (“CAG”), which manages and runs Singapore’s Changi Airport, to Temasek Holdings. Temasek Holdings may own CAG in the future. Mr.
Lee Chong Kwee is a nominee of Dahlia on our Board of Directors.


======

Page 139 describes Tiger Airways' transactions with SIA.
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Old 23rd Dec 2009, 17:28
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First Impressions

Some comments regarding my first Tiger flight with my family.
I have flown on many flights on Easy Jet and Ryanair since their inception and filmed Easyjet and Stelios in his startup phase

Back to Tiger
Fares were very cheap, cheap enough to factor an overnight stay if the aircraft departed a day late.

Selected own seats.

72 hours min notice to alter prebooked weight of baggage is a trap, there are options with set prices for 15kg 20kg and 30 kg.


New aircraft, local sounding pilots with good communication to passengers.

Outgoing flight left on time return flight left 10 minutes late.

Cabin crew appeared happy, cohesive and were considerate friendly and helpful to passengers, the most pleasant crew I have experienced in recent times.

Explanation of Over Wing Emergency Exits to passengers seated in that row was more detailed than I have ever heard.


Luggage retrieval setup in Melbourne arrivals "shed" is an extraordinary affair but in light of the low fares is an acceptable loss of comfort to save a few $$$. But no obvious help should one have oversize baggage that wouldn't easily fit through the cattle turn-style.

From this single flight Id say that their approach is better than Ryanair as their efforts to save a few $$$ is not in your face (for instance the seats do not have the plastic backs) and the staff don't seem to have developed contempt for their passengers, although this may come in time.

If Tiger can keep the respect for passengers we experienced they would do well.
Clear communication to passengers who are new to airline travel is key to reducing instances of unnecessary angst and public displays of disapproval that begin to fray the nerves of any passenger within earshot.




I'm planning a trip to Vietnam with Tiger for the family in 2010, total cost for 3 adults and one child return from Perth is under $1500 including taxes. This is cheap enough to be happy that the plane leaves (at any time) on the days of scheduled departure.


I hope they stay in business long enough for us to take advantage of their low fares and hope that cabin staff can continue the level of service that we experienced on our first flight with them.



Mickjoebill

Last edited by mickjoebill; 23rd Dec 2009 at 17:43.
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Old 5th Jan 2010, 03:11
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So whats the aircraft delivery schedule? I heard number 8 is in the country but not sure where its going.
SN
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Old 5th Jan 2010, 08:40
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Didnt think it would be here this early, its heading off to be based in Adelaide from end of march, operating around Melbourne from 1 Feb-27 March.

Which ex Singapore aircraft is this? 9V-TAL?
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