Tiger moving to Avalon?
 

There's an article in today's herald-sun that claims Lindsay has lured Tiger down to Avalon. Set to be announced at the end of the month if everything goes right. Entire Melbourne operation to move by years end.

No online article available yet.

This can't be a good thing for Tiger can it?

More like having Avalon as it's 3rd base. Tullamarine will continue.

Fox lures Tiger to Avalon

* John Beveridge
* From: Herald Sun
* February 03, 2010 12:38PM

Fox lures Tiger to Avalon | Herald Sun

LINDSAY Fox will have a broader smile on his dial than usual after successfully wooing Tiger Airways down the Geelong Road to Linfox's Avalon Airport.

While the deal is still being kept under wraps, my usually reliable spy tells me it is set to be announced later this month, barring any last-minute problems.

Under the proposed deal, Tiger would start to hand back its terminal space at Melbourne Airport and progressively move all of its operations and flights to Avalon later this year.

The attraction for the recently floated Tiger is much lower flight costs -- the same reason fellow budget airline and Qantas offshoot Jetstar originally decided to base many of its flights out of Avalon.

With Jetstar now offering flights from both Avalon and Melbourne airports, Tiger has struggled to profitably compete on the main Melbourne/Sydney, Melbourne/Coolangatta and soon to launch Melbourne/Brisbane route against the combined juggernaut of Qantas/Jetstar and Virgin Blue.

With very frequent flights and the ability to compete strongly on price, the larger airlines have made it very tough for Tiger to continue with its aggressive growth plans and become a profitable airline in Australia.

While the move will help Tiger contain costs and expand its flight schedule, Linfox is the biggest winner because the move cements Avalon's position as effectively Melbourne's low-cost carrier airport.

Many other countries have successfully run low-cost carrier airports despite larger distances from city centres.

Passenger movements at Avalon could now rise dramatically from the current million a year to several times that, depending on Tiger's successful expansion.

While Tiger only operates seven A320 aircraft in Australia at the moment, most of the $200 million it raised in its recent float on the Singapore stock exchange is earmarked for an aggressive Australian fleet expansion.

Managing director Tony Davis hopes to expand Tiger's international fleet -- including Australia -- to 68 A320s by 2015.

A move to Avalon also allows Tiger to really push its "bargain fares" model to include cheaper airport parking, although the greater distance from Melbourne will be a sticking point for some travellers.

While Tiger has lost more than $70 million since launching in Australia in 2007, Davis has claimed that the airline is here for the long haul and is already cash-flow positive.

Wrong. What MrSheffield said is correct.

Problem is, Tullamarine is full and no other state is willing to offer such huge incentives that Tiger is chasing.

So does that mean customs and immigration 24/7 at Avalon?

There are no international flights from Avalon, Tiger cant fly international at the moment, so really just an increase in security/aerocare staff if anything.

These journos are unbelievable.

Who is this "reliable" :rolleyes: spy Mr Beveridge? Someone in the QF PR department i suspect.

What was your reward for this piece of 2nd rate story telling?

You mean journalists can write an article and make references to "my usually reliable spy" ????!?!?!?!?!

Is this what is meant by a free press?

This is all good for Tiger's current cost negotations with Melbourne Airport :)

Rural

Anyone from Tiger like to comment that an annoucement is to be made soon.My spies tell me that up to 7 bays likely by the end of the year and the new extensions to the terminal already nearly complete. :suspect:

... of course this could just be a beat up from Tiger to help push down the price of terminal access in negotiations with Melbourne Airport....

speaking to a Capt in Tiger yesterday, he seems to think BNE will be their next base...

b.

Well BNE-ROK could be on request of BNE, mabye as a trial/contract or something to allow Tiger to set up a hub there.

Otherwise I see no logic in joining this slow route, why not Mackay...

ML-MK
 

Tiger are not pulling out of Rockhampton. It will be served via Brisbane. MKY will be "rested" for a short period, it will be returning late this year/early next year. Not necessarily from Melbourne.

Davis in Australia later this month for AVV/BNE base discussions.

'Rested' is such a nice term, I'll take your word for it!

Thanks for the info!