Tiger sharpens its claws………….
A report by Steve Creedy in The Australian says Tiger Airways has finally unsheathed its claws yesterday, delivering on its promise to provide airfares under $10 with 15,000 flights at prices ranging from $9.95 and $39.95.
Unveiling its low-cost terminal in Melbourne, the new domestic airline – whose parent company operates out of Singapore – confirmed it would start flying on November 23.
Tiger also introduced its first locally registered Airbus A320 plane and a new livery featuring the Australian flag.
The sale fares include a $9.95 tax inclusive one-way fare between Melbourne and Launceston, a $19.95 one-way Melbourne-Gold Coast fare and $39.95 one-way fares to Perth and Darwin.
The fares, for travel between November 23 and January 31, undercut Jetstar’s brief offer last week of $49 one-way on its second Perth-Melbourne service and suggest the battle for the title of Australia’s lowest-fare airline will be hard fought.
Tiger chief executive Tony Davis said the airline wanted to underscore its message that it was a a genuine low-cost airline.
“We are a low-cost airline that understands the business model,” Mr Davis said. “We don’t believe our competitors in Australia are low-cost airlines in the same mould as Tiger and we’re here for the long haul.”
But Jetstar indicated it was unlikely to give up the low fares mantle easily. “Jetstar will continue to hold up its low fares leadership position through the depth and breadth of our offers across our network,” spokesman Simon Westaway said.
Tiger plans to start services with five new Airbus A320s, and has spent $5 million refitting the Melbourne Airport low-cost terminal originally used by Virgin Blue and Impulse Airlines.
The new terminal features three gates and five aircraft parking positions to accommodate the 600 passengers expected in peak times.
It will be a basic, no-frills operation that will offer some retail facilities and conveniences but not aerobridges or business lounges.
“The terminal is now ready for the launch of services at the end of November,” Mr Davis said. “The aircraft are being delivered and … transferred on to the Australian register; our crew and staff are in place to start services.
“So it is a reality and we’re delighted that the Australian consumer is going to benefit from genuinely low fares.”
While Tiger is starting its local operations with a modest fleet, it expects to carry about two million passengers a year.
“If the consumer response to the fares we’ve been offering continues, I think you’ll see additional aircraft and additional flights coming into the Tiger domestic operations,” Mr Davis said.
Report by The Mole and The Australian
John Alwyn-Jones
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