Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Tiger decision day- April 24.

Old 23rd Apr 2013, 01:37
  #21 (permalink)  
 
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granted, I'm not completely familiar with the details, but how will this affect the virgin drivers? can we expect to see va be replaced on some routes by tt? similar to what jetstar did to QF? any opportunities for those va guys close to a seat change that will now miss out due to the expansion of tiger?
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Old 23rd Apr 2013, 01:47
  #22 (permalink)  
 
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Tiger decision day- April 24.

Congrats to those at TT. Must be a relief knowing that your jobs are now safe.

Also good for aviation scene in Australia. Probably the only movement this year.

The way I understand it the 2 companies are going to be operated as separate entities but I could imagine that TT will be put on the more "leisure" routes and VA will be put as pure premium carrier.
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Old 23rd Apr 2013, 02:06
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I'm glad tiger guys and girls have some certainty for their futures.
I just hope that virgin management don't see the spreadsheet advantage of carving up certain parts of the operation and do a jetstar on the vb operation.
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Old 23rd Apr 2013, 03:20
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JB might not, but the next guy will.

As long as executive management are KPI driven with part of that reducing costs, the temptation will be to do a exactly that/
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Old 23rd Apr 2013, 05:29
  #25 (permalink)  
 
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granted, I'm not completely familiar with the details, but how will this affect the virgin drivers? can we expect to see va be replaced on some routes by tt? similar to what jetstar did to QF? any opportunities for those va guys close to a seat change that will now miss out due to the expansion of tiger?
Could result in some shrinkage of Virgin if this article is anything to go by

Australian travellers are set to realise how good they've had it flying on domestic routes.

After an era of super cheap fares, they face a small amount of pain from the competition regulator freeing up Virgin Australia to forge ahead with its bid for a controlling stake in Tiger Australia.

The decision to allow the removal of an independent third player in Tiger means the fast-paced growth in capacity in the domestic market is set to slow. That will reduce the need for the country's airlines to dump fares in order to fill seats on their planes.
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The effective takeover of Tiger Australia will remove the chance of the budget airline making irrational business decisions, such as launching new routes it had no chance of turning a profit on.

Once it finalises the acquisition, Virgin is likely to shift Tiger away from the main routes – such as Sydney-Melbourne – to those focused on flying holidaymakers to their destinations.

Since launching flights here in 2007, the Singapore Airlines-backed Tiger has been a constant pest for Virgin and Qantas's budget offshoot, Jetstar – and duly forced them to respond in lowering fares.

But before passengers fire angry emails to the Australian Competition and Consumer Commission, it is important to consider the alternatives to it giving the green light to an effective return of this country's aviation industry to a duopoly between Virgin-Tiger and Qantas-Jetstar.

Tiger has notched up losses of more than $216 million in less than six years. And its Singapore parent had made it clear it would pull out of Australia if the bid was blocked.

Competition tsar Rod Sims faced scoring an own goal. He could have knocked back Virgin's bid on the basis of a potential lessening in competition, only to find the third independent player pack its bags for home.

While the super cheap fares on key routes might be coming to an end, it is important to bear in mind that the airlines cannot return to an era when gouging of travellers was the norm. A glut in capacity remains with Australia's domestic market growing this year by between 5 and 7 per cent.

The airlines, too, make a fair point that the fare wars at both ends of the market are unsustainable in the long term, and a return to moderation is not only in their interest but those of the country in the long run.

The question now is what will be the finer details of Virgin's plan to create a Qantas Mini-Me.

Virgin chief executive John Borghetti faces a big task because he has so many balls in the air.

Not only does he have to put Tiger back on the path to profitability, but he has to manage the takeover of West Australian airline Skywest and forge ahead with turning Virgin into a true upmarket competitor to Qantas. All of these tasks will chew up management's time.

Tiger's brand was also severely damaged in the eyes of many travellers after the air-safety regulator grounded its operations here for five weeks in 2011 due to safety concerns.

Borghetti is of the view that leisure passengers are more quick to forget provided both the cheap fares and the safety of the airline remains.

While the serial pest has been removed, the Tiger takeover will allow Borghetti to create a more credible competitor to the dominance of Qantas-Jetstar.

That can't be a bad thing for travellers.

Read more: Virgin-Tiger deal: short-term pain, long-term gain

Last edited by neville_nobody; 23rd Apr 2013 at 05:30.
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Old 23rd Apr 2013, 05:36
  #26 (permalink)  
 
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Maybe the ACCC should be looking at airports if they want more independent airlines in this country. Nothing will change unless we dispose of the monopolies of the capital city airports.

ACCC TO NOT OPPOSE VIRGIN AUSTRALIA’S PROPOSED ACQU
ISITION OF 60% OF TIGER AUSTRALIA

The Australian Competition and Consumer Commission
(ACCC) has announced that it will not oppose the proposed acquisition by Virgin Australia Holdings Limited (Virgin Australia) of 60% of Tiger Airways Australia Pty Ltd (Tiger Australia).

Virgin Australia is the second largest domestic airline operator in Australia, behind the Qantas Group. Tiger Australia is a domestic airline that commence
d operations in November 2007 and currently services 16 domestic routes with 11 aircraft. Tiger Australia operates under a low cost carrier model which primarily focuses on price sensitive leisure travellers.

“The ACCC’s view is that this acquisition is unlikely to lead to a substantial lessening of competition in the Australian market for domestic air passenger transport services,” ACCC Chairman Rod Sims said.
“Essential to reaching this view was the ACCC’s assessment, made after thorough and extensive testing of the issue, that Tiger Australia would be highly unlikely to remain in the local market if the proposed acquisition didn’t proceed. Absent this conclusion the acquisition raised considerable competition concerns. “In making this assessment the ACCC had particular
regard to Tiger Australia’s history of poor financial and operational performance. In six years in Australia, Tiger has never made an operating profit, and its current losses are large. These losses remain a big drag on the
entire Tiger group,” Mr Sims said. “The ACCC also tested the likelihood of Tiger Australia’s performance being improved by either its current owner (the Singapore-based Tiger Airways Holdings Limited) or other potential shareholders or joint venture partners if the proposed acquisition did not proceed. The ACCC considered it unlikely given the current circumstances that Tiger Australia would be turned around under any of these scenarios to provide vigorous competition as an independent operator. Instead its key assets, being the 11 Airbus aircraft, would very likely be redeployed into the Asian operations of its parent company.” “The ACCC would always prefer to see a greater number of independent airlines competing in the domestic market. However, our investigations showed that Tiger Australia had been
unable to establish itself as a viable competitor despite substantial investment and numerous changes of management and strategy over the years.

We concluded that it was highly likely that Tiger Australia would leave the market if this acquisition didn’t go ahead, and accordingly blocking the acquisition would not serve to protect competition,” Mr Sims said.
“Virgin Australia now has the opportunity to pursue its stated objective of transforming Tiger Australia into an effective competitor to Jetstar for price sensitive travellers.”

The ACCC consulted widely with a range of interested parties, including other airlines, airports, tourism organisations and industry bodies throughout the course of its review
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Old 23rd Apr 2013, 05:36
  #27 (permalink)  
 
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Excellent, leisure layovers!
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Old 23rd Apr 2013, 06:48
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What would be more plausible is leaving the Virgin Australia network alone, and deploying Tiger in Asia from bases like Darwin to take on Jetstar in Asia? Can't see Borghetti or anybody else for that matter cannibalising a brand they have strived hard to build up..just my observation.
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Old 23rd Apr 2013, 07:16
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Interesting that Tiger are now using Virgin's gates at Sydney.
They have always used the Virgin gates, it's in the lease agreement VAA have with SCAL.
See it's posts like these that make this forum so great

The decision doesn't seem all that surprising from a competition regulator given Tiger was providing very little competition. When they first arrived they were like the brand new IGA that provided some good things at a good price, but now they're like the struggling milk bar that barely sees a customer and is losing money trying to offer something they couldn't afford to (domestically)
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Old 23rd Apr 2013, 07:31
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Great news for TT OZ employees.

The ACCC were between a rock and a hard place on this issue, and have been pretty much saying it for some time. Hopefully now the deal has been given the green light, VA will move quickly to improve the TT bottom line.

I can't imagine acquiring 60% of an entity and allowing it to run at a loss for too long.

My two bobs worth: Crewing wise, the biggest movers in the foreseeable future will be the ATR regional, and demand for Domestic drivers for an expanded TT OZ.

Now if Jetstar ever gets it's crewing act together, some of the regional airlines just might have to reassess their crew retention policies. Those who actually have policies that is
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Old 23rd Apr 2013, 07:38
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some of the regional airlines just might have to reassess their crew retention policies. Those who actually have policies that is
I like your train of thought Krusty!

I am wondering whether there will be a gentleman's agreement in place in not poaching each other's drivers.
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Old 23rd Apr 2013, 08:47
  #32 (permalink)  
 
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Doubtful BH. I imagine the challenges ahead for VA would take priority over any "Gentleman's Agreement" with another carrier!

As far as retention of pilots from some of the second level operators go, I think we all know the answer to that one.

Buckle up guys. Interesting times again.
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Old 23rd Apr 2013, 09:30
  #33 (permalink)  
 
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My two bobs worth: Crewing wise, the biggest movers in the foreseeable future will be the ATR regional, and demand for Domestic drivers for an expanded TT OZ.
Assuming that there is no contraction of Virgin's operations. If Tiger replaces Virgin in some ports there won't be much gain unless Virgin expand either overseas or interstate. I can't see them expanding Tiger, whilst shrinking Virgin and leaving guys sitting around like QF does.

If Virgin and Tiger expand then the regionals are going to really start hurting and you might even find guys punching out of Jetstar. If that happens it might be the old pilot shortage again.......

Last edited by neville_nobody; 23rd Apr 2013 at 09:36.
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Old 23rd Apr 2013, 12:24
  #34 (permalink)  
 
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Hi all,

A friend of mine who had been through the Virgin selection process last year (and was waiting for a start date) was called up late last week and asked if he could attend a Tiger interview.

I was wondering if anyone has any info on the Tiger selection process, interview, sim, psychometric etc? Is it similar to the Virgin process?

Also what they are like to work for, pay, lifestyle? He has been overseas for a few years and has quite a few hours on the airbus and was wondering how long he would have to wait for a command?

I've used the search function but haven't found anything current.

Any info much appreciated.

PM me if you like.

Thanks in advance
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Old 23rd Apr 2013, 18:49
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Good windup Compy, we're on to you these days!
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Old 23rd Apr 2013, 19:27
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Yes, you would have expected Compylot to have done the honourable thing and changed hand[le]s!
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Old 29th Apr 2013, 02:55
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Qantas Exec to Lead Tiger

From the Fairfax website . . .

Qantas Exec to Lead Tiger

Qantas executive Rob Sharp has been appointed to run Tiger Australia, the low-cost airline confirmed this morning.

Tiger recently received regulatory approval to sell 60 per cent of the company to Virgin Australia.

Mr Sharp was the global head of commercial airport infrastructure and services at Qantas.

More to come.
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Old 29th Apr 2013, 03:15
  #38 (permalink)  
 
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Originally Posted by Pedota View Post
From the Fairfax website . . .
Head hunted by JB perhaps?
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Old 29th Apr 2013, 07:51
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Qantas executive now CEO of Tiger

The virgin group are collecting quite the talent pool!

Do you suppose himself and JB are Oldmates ?

http://blogs.crikey.com.au/planetalking/2013/04/29/former-qantas-executive-to-head-tiger-australia/
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Old 29th Apr 2013, 08:42
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New Tiger CEO

Former Qantas exec to lead Tiger Airways - The West Australian
Mr Sharp will replace Andrew David, who left Tiger in March for a role at Jetstar.....ROFLMAO

Last edited by fishers.ghost; 29th Apr 2013 at 08:43.
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