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Virgin's TigerAir losing $2 million a week

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Virgin's TigerAir losing $2 million a week

Old 26th Jul 2014, 02:06
  #21 (permalink)  
 
Join Date: Sep 2002
Location: Oz
Posts: 238
I've flown with Tiger about 8 or so times. Had no problems at all. Departed and arrived on time, they got me where I wanted to go in once piece and didn't lose my bags. Sure I got stung by being a few Kg over on my baggage once, but I paid $29-00 for the ticket.

Sure the terminals, aircraft etc weren't flash. At some ports you may have to walk across the tarmac in the rain rather than have an aerobridge. Who cares, a little bit of water never hurt anyone.

As for inflight catering, I had gourmet food, thanks to the Mrs who packed me a cut lunch. A news paper and the latest copy of wheels magazine meant I was a happy contented chap.

Do you really need the frills on a 1 hr sector?
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Old 26th Jul 2014, 02:30
  #22 (permalink)  
 
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As me old mate says, Wilbur and Orville should have been shot at birth.
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Old 26th Jul 2014, 06:39
  #23 (permalink)  
 
Join Date: Feb 2002
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An informed rumour is that the Skywest numbers aren't flash either. Has Virgin/Group actually made money since inception???
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Old 26th Jul 2014, 14:16
  #24 (permalink)  
 
Join Date: Dec 2013
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Tiger always was about payback

Do you blokes recall the circumstances in which Tiger originally came to our shores? It was right after Dixon, Joyce & Co at Qantas decided that they would own Singapore with their idiotic JetStar Asia idea (one that has been an open wound ever since, money wise).

Tiger was an ancilliary holding of Temasek holdings, the investment arm of the Singapore government. Tiger was a bitch slap to Qantas for Jetstar.

Fast forward a few years after Tiger shot off both of its own feet courtesy of local managers even more tone deaf than Joyce. After years of losses and being unable to game either the public or CASA, Tiger was in trouble. Enter Virgin, who, under Borghetti, wasn't above continuing the Qantas hubris therapy, albeit on a more limited scale.

I do not think that Tiger was ever planned to make a huge profit or be self-sustaining: it was a strategic move in the both the market place and the head space of its competitors. It continues to be so, but now the losses are getting serious. (Along with, I suspect, Jetstar's. But the JQ P&L situation can only be surmised)

I don't think that anyone of the two players/four brands are making money right now...a hangover from the market share wars and the 65% petard upon which Joyce has hoist Qantas/JQ. The current truce on that front may help that a bit for Virgin and Qantas, but not their LCC offshoots in the near term. Fares and traffic are both too low everywhere right now for that.
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Old 26th Jul 2014, 14:31
  #25 (permalink)  
 
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There will be an aviation industry in Australia in a decades time. It wont bear any resemblance to today, but it'll still be there.
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Old 26th Jul 2014, 21:49
  #26 (permalink)  
 
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Did one of your many management contacts in Virgin tell you that KRUSTY?.....
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Old 27th Jul 2014, 09:27
  #27 (permalink)  
 
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Is unsubstainable because there just isn't the need for four carriers. In the UK we have nearly three times the population, probably 500 million people within two hours in our catchment area but only two LCCs. The aviation infra structure needs looking at as well. Having worked at Tulla it's a disgrace. I used to have to walk from Tulla to Airport West to get a tram. I'm in Manchester now you can get a bus, train tram you name it. Sydney is no better with rip-off train prices. If you make it easy to travel people will. As much as I love Australia, aviation wise they don't half shoot themselves in the foot.
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Old 27th Jul 2014, 09:35
  #28 (permalink)  
 
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Reducing the exorbitant senior corporate and senior executive salaries to the same level that these corporate people want pilots to work at, should solve all the airline profitability problems in one go.
There's at least one American ex-CEO, of one large Australian company who has retired very comfortably to the U.S. after extorting a "pension" of AU$1M annually from that company, for his retirement.
Naturally, it's payable to the day he dies, and no doubt it's indexed, too. This pension was in addition to all his other retirement benefits that came with his "salary package".
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Old 27th Jul 2014, 11:43
  #29 (permalink)  
 
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I find it very interesting that the US is still described as struggling economically, however over the past month United, Delta, Alaskan, American and Southwest have all announced substantial profits (the first such results for many years in most cases).

Meanwhile in Australia, where we are apparently riding the crest of the wave of a mining and construction boom (??), all of our airlines seem to be struggling.

Could it be -
  • over-capacity?
  • over-regulation?
  • or just "over"?
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Old 27th Jul 2014, 12:41
  #30 (permalink)  
 
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Anyone remember the 90's??? If this keeps up something WILL break. I made a comment some years ago that "one day there would be A320 drivers 5 deep at the bar at the local aero club talking about a career in instructing", that may well eventuate.

SN
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Old 27th Jul 2014, 17:54
  #31 (permalink)  
 
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Chimbu

The reports are of quarterly earnings. Not profit.

halas
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Old 27th Jul 2014, 23:41
  #32 (permalink)  
 
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First there was World Championship Wrestling now we have here Midget Wrestling!

I don't think either CEO can count to more than double figures....
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Old 28th Jul 2014, 06:29
  #33 (permalink)  
 
Join Date: Oct 2013
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The aviation infra structure needs looking at as well. Having worked at Tulla it's a disgrace. I used to have to walk from Tulla to Airport West to get a tram.
I think it might have been WMk2 or one of the other pilots who remarked that Tulla is "a third world airport in a first world country". Nothing could be more true.

But then airports aren't really interested in airlines. They're more interested in car parks, $8 coffees and duty free. Airlines and their demands for aerobridges, GSE parking and, what?? You want working ground power AND air con on the international bridges?? All this is simply a nuisance to the airport corporations because it's effectively a monopoly in every state: 1 capital city, 1 airport. So the airports have no desire to cater to the airlines because the airlines largely have no choice but to fly there and grit their teeth at paying exorbitant charges for s**t service and facilities.
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Old 28th Jul 2014, 09:43
  #34 (permalink)  
 
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Emergency 000

Bingo!!
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Old 28th Jul 2014, 11:32
  #35 (permalink)  
 
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Some of these airports are making 1 million dollars a day profit. Seems pretty balanced and fair.
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Old 29th Jul 2014, 07:31
  #36 (permalink)  
 
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A bit of a thread drift but good point:
But then airports aren't really interested in airlines. They're more interested in car parks, $8 coffees and duty free. Airlines and their demands for aerobridges, GSE parking and, what?? You want working ground power AND air con on the international bridges?? All this is simply a nuisance to the airport corporations because it's effectively a monopoly in every state: 1 capital city, 1 airport. So the airports have no desire to cater to the airlines because the airlines largely have no choice but to fly there and grit their teeth at paying exorbitant charges for s**t service and facilities
An enquiry into the airports is long over due. Monopoly gouging, lack of infrastructure at BNE, PER & SYD, just disgraceful.

Unless their charges and attitude towards the airlines improves there will be more corporate airline failures. Which is not good for any of us.
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Old 29th Jul 2014, 10:27
  #37 (permalink)  
 
Join Date: Mar 2003
Location: uk
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Thumbs down

The Australian aviation sector was destroyed the day the FAC was formed back in the 80s.
It added so much cost onto everything that GA died and the airlines became more and more expensive to operate thus the public copped it.
It has just gone from bad to worse since then regardless of who the operator is.
If the industry was a horse you'd shoot it.
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Old 29th Jul 2014, 12:05
  #38 (permalink)  
 
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The reason why there is no tram or light rail link to Tullamarine is that the Victorian State Government signed a deal with the owners of Melbourne's tollways that they would never build one.
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Old 29th Jul 2014, 13:12
  #39 (permalink)  
TWT
 
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Not so sure Anthill :

Public Transport Users Association (Victoria, Australia) Myth: The Citylink contract forbids airport trains
mmmmmm
mmmmmmmmm
nnnnnnnnn
nnnnnnnn
mmmmmmmmmmmmmmmmmmmmmm

Last edited by TWT; 29th Jul 2014 at 13:25.
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Old 29th Jul 2014, 19:58
  #40 (permalink)  
 
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Thanks, ah...urban myths
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