Tiger gets a little help from its friends
MELBOURNE – The Age in Melbourne has revealed that the Victorian Government helped cover half the set-up costs of the Singapore Government-backed Tiger Airways Australia in 2007, as part of its efforts to lure the low-cost carrier to Melbourne’s Tullamarine airport.
Opening the lid on the two years of secrecy over what sweeteners Tiger received to establish its Australian base in Melbourne, the airline’s belated release of its first set of full-year financial accounts show it was paid A$3.9 million in government grants.
These grants made up half the $7.9 million “pre-operating” expenses Tiger incurred before starting services in November 2007, said The Age.
Tiger declined to tell The Age whether it has received additional incentives from the privately owned Melbourne Airport.
The Singapore airline also declined to comment on speculation it has received a hand-out from the South Australian Government in relation to the planned establishment of its second Australian base in Adelaide next month.
“We’re not at liberty to talk about our arrangements with airports or particular governments,” said Tiger spokesman Matt Hobbs.
South Australia has been desperate for an airline to base itself there since the opening of Adelaide Airport’s $260 million terminal in 2005, The Age noted.
Despite its hand-out, Tiger’s accounts for the year to March 31, 2008, show the airline had lost A$20 million four months after its launch.
Despite market conditions deteriorating since then, the airline has rejected growing worries in the travel and aviation industry that it is in financial trouble.
Mr Hobbs explained a recent scaling back of Tiger services was due to seasonal factors
As for reports of multiple Tiger jets being kept in hangars during the day, Mr Hobbs said the airline usually scheduled more of its planes for maintenance during quiet periods. “We try to do a fair bit of it in February,” he said.
Tiger is 49 per cent owned by Singapore Airlines, whose largest shareholder is the Singapore Government’s investment vehicle Temasek Holdings.
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists