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Tigerair

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This article is about the Singaporean subsidiary of Tiger Airways Holdings. For the Australian affiliate, see Tigerair Australia. For the Taiwanese affiliate, see Tigerair Taiwan. For the former Philippines affiliate, see Tigerair Philippines.

Tiger Airways Singapore Pte Ltd
IATA ICAO Call sign
TR TGW GO CAT
Founded12 December 2003 (as Tiger Airways)
HubsSingapore Changi Airport
Frequent-flyer programKrisFlyer
AllianceValue Alliance
Fleet size23
Destinations40
Parent companyBudget Aviation Holdings[1]
HeadquartersSingapore
Key peopleLee Lik Hsin (CEO)[2]
Websitewww.tigerair.com

Tiger Airways Singapore Pte Ltd, operating as Tigerair, is a budget airline headquartered in Singapore. It operates services to regional destinations in Southeast Asia, China and India from its main base at Singapore Changi Airport. It was founded as an independent airline in 2003, and was listed on the Singapore Stock Exchange under the Tiger Airways Holdings name in 2010. In October 2014, parent company Tiger Airways Holdings became a subsidiary of the SIA Group, who took a 56% ownership stake.[3]

Tigerair won the CAPA Low Cost Airline of the Year Award for 2006 and 2010.

On 16 May 2016, Tigerair joined the world’s largest low cost carrier alliance, Value Alliance.[4]

On 18 May 2016, Singapore Airlines established Budget Aviation Holdings, a holding company to own and manage its budget airlines Scoot and Tiger Airways following the delisting of Tiger Airways from the Singapore Stock Exchange.[2]

History

Establishment

Former Tiger Airways branding

Tiger Airways Singapore was incorporated on 12 December 2003 and began ticket sales on 31 August 2004. It has its head office in the Honeywell Building in Changi, Singapore.[5]

Services commenced on 15 September 2004 to Bangkok. Scheduled international services are operated from Singapore Changi Airport. The airline is a subsidiary of Tiger Airways Holdings, a Singapore-based company.

In 2006, the airline flew 1.2 million passengers, a growth of 75% from the previous year.

The airline was the first to operate from the Budget Terminal at Changi Airport as part of its cost-saving operations structure, similar to Ryanair's. Despite regional competition, the airline has reiterated its current intention to remain focused on flying within a five-hour radius from its Singaporean base.

As of 25 September 2012, Tigerair Singapore operates from Singapore Changi Airport Terminal 2 due to the demolition of the Budget Terminal to make way for Terminal 4, due to be completed in 2017.

Route Strategy

Tigerair A319-132 in 2009
Tigerair A320-232 approaching Singapore Changi

The airline flew into a period of relative difficulty for the aviation industry with rising oil prices and intense competition from other airlines. The airline held off imposing fuel surcharges as its competitors had done.

With Singapore Airlines (SIA) having a stake in the airline, the airline occasionally fills in the gap when SIA drops its services from certain destinations. Macau, once served by SIA before being taken up by its subsidiary, SilkAir, in 2002, terminated all flights completely by the end of 2004. Three months later, the route was taken over by Tigerair with flights commencing 25 March 2005. A similar pattern can be observed in Krabi, where SilkAir suspended services in February 2005 in the wake of the effects of the 2004 Indian Ocean earthquake. Tigerair resumed direct services to the location from 7 October 2005.

In late July 2005, it was announced that the airline would commence flights from Macau to Manila (Clark) on 30 October 2005, a much-heralded move as it may signal the establishment of a secondary base besides Singapore, allowing the airline to expand and diversify risks.

On 21 September 2005 the company produced a report card on its first year of operations, with a total of over 500,000 passengers carried, 5000 scheduled flights flown, and a flight completion rate of 98.7 per cent. 94 per cent of flight departures and 90 per cent of arrivals took place according to schedule. It acquired four aircraft and launched a total of nine routes – of which four are flown exclusively by the airline – during the year.

The airline expected to increase its fleet to nine Airbus A320 aircraft by end 2006, and to carry up to three million passengers a year by then. It also hoped to add six more routes during the year, primarily to destinations in China and India, with flights to Southern China having commenced April.

The airline also announced its switch from Singapore Airport Terminal Services to Swissport for ground handling once it became the first airline to operate at the newly opened Budget Terminal in Changi Airport on 26 March 2006.

Tigerair became the first Singaporean low-cost carrier to receive operating permits from the Chinese aviation authorities to fly to the southern Chinese cities of Haikou, Guangzhou and Shenzhen in an announcement on 21 February 2006. Ticket sales to these destinations commenced 24 February 2006, with the first flight to Shenzhen taking place on 15 April, to Haikou from 26 April and to Guangzhou from 27 April 2006. The airline has since indicated that the routes were highly popular, with increased flights to Haikou and Guangzhou less than three months since their launch.

In June 2006, flights to Da Nang were suspended. On 20 July 2006, the media reported on the airline's intentions to increase its routes from 15 to 20 and to establish a second base city by the end of the year. Possible growth regions included China, Southern India, Cambodia and Brunei.

The airline's plan for a possible initial public offering was also revealed. At the same time, it announced that it saw an increase of 81 per cent in passengers carried in the months of April to June since its move to the Budget Terminal in March, compared to the same period in the previous year. Tigerair started services from Singapore to Perth on 23 March 2007.

On 25 October 2010, Tigerair announced that it will withdraw from Bangalore effective 14 November 2010, citing no reason. Tigerair resumed its flights between Singapore and Bangalore from 31 October 2011.

On 19 August 2015, Tigerair announced it is expanding its network with the addition of Quanzhou and Lucknow as new destinations, commencing services on the 28 September and 3 December respectively.[6]

Destinations

Main article: Tigerair destinations

Tigerair currently flies from Singapore to 38 destinations within an approximate five-hour radius around the region.

Codeshare agreements

Tigerair has a codeshare agreement with:

On 16 May 2016, Tigerair joined Value Alliance, the world’s largest low cost carrier alliance.[4] The new alliance was started with Philippines' Cebu Pacific, South Korea's Jeju Air, Thailand's Nok Air and NokScoot, Tigerair Singapore, Tigerair Australia and Japan's Vanilla Air.

Corporate management

Tigerair's original founding shareholders were Singapore Airlines (49%), Bill Franke's Indigo Partners (24%); Tony Ryan's Irelandia Investments (16%) and Temasek Holdings (11%).[7]

Tigerair Singapore is wholly owned by Tiger Airways Holdings Limited, a holding company set up in 2007 to manage both Tiger Airways and start-up Australian subsidiary Tigerair Australia, which has since been disposed to Virgin Australia. Tiger Airways Holdings Limited is listed on SGX since 2010.

In October 2014, the Singapore Airlines group increased its stake to take a majority ownership in Tiger Airways Holdings, and according to the 2015 Annual Report Singapore Airlines Limited has a 56% ownership of the company:[8]

In November 2015, Singapore Airlines announced an offer to acquire the remaining 44.23% stake in Tiger Airways Holdings Limited for $0.41 per share. This represents a $0.10 premium, or 32% more than the price before the takeover was announced. The offer was conditional upon Singapore Airlines owning more than 90% of Tiger Airways, however Singapore Airlines has since extended the offer until 8 January 2016, for it currently only owns 74.5% of Tigerair.[9]

For Tiger Airways Holdings financial performance, see Tiger Airways Holdings.

The following table shows the business trends of Tigerair Singapore, excluding other Tigerair subsidiaries and associated airlines.

Year ending 31 March:
2009 2010 2011 2012 2013 2014 2015
Total Revenue (S$m) 268.0 277.9 341.8 460.9 611.0 639.0 677.4
Operating Profit (S$m) 12.2 25.0 53.8 −16.0 57.0 −59.0 −39.9
Passengers booked (thousands) 3,903 4,393 5,068 5,140
- passenger change year-on-year Increase12.6% Increase15.4% Increase1.4%
Passenger load factor (%) 85.4 81.0 84.3 78.1 82.1
Number of aircraft (at year end) 9 10 14 18 20 27 27
Sources [10] [10][11] [11] [12] [12][13] [14][15] [8][16][17]

Fleet

As of 31 October 2016, the Tigerair fleet consists of the following aircraft:[18]

Tigerair Fleet
Aircraft In Service Orders Passengers Notes
Airbus A319-100 2 — 144
Airbus A320-200 21 — 180
Airbus A320neo — 37
TBA
EIS: 2018.
Total 23 37

On 21 June 2007, Tigerair announced it had signed a letter of intent to purchase 30 aircraft worth US$2.2 billion, with another 20 on option. These would be delivered between 2011 and 2014. On 10 October 2007, Tigerair confirmed the letter of intent signed in June. The new aircraft will be deployed in Tigerair's Asia-Pacific network and the domestic operations in Australia. On 18 December 2007, Tigerair announced that it had taken up the options and made further orders to take their fleet of Airbus A320s to 70 in total.[19]

On 24 March 2014, Tigerair signed a Memorandum of Understanding (MOU) with Airbus for the purchase of 37 Airbus A320neo aircraft with 13 options. The aircraft will be powered by Pratt & Whitney PW1100 engines.

Tigerair announced on October 2014 that a total of 12 aircraft will be subleased to IndiGo for a period of three to four years to reduce excess capacity significantly and hence lower related leasing cost.[20]

In-flight

Seating

All aircraft offer single-class economy seating of 144 and 180 seats in the Airbus A319 and A320 aircraft respectively. The seat pitch is approximately 72.5 cm (28.5 in) for standard rows and 97.5 cm (38.4 in) for exit rows and seat width of approximately 46 cm (18 in).

Food and beverage

Tigerair offers food and beverages available for purchase as part of a buy on board programme - Tigerbites.[21] The menu offers light meals such as instant noodles, sandwiches and salads. Hot and cold beverages as well as liquor are also available for purchase.

Entertainment

An in-flight magazine, Tiger Tales, is provided as free reading material for passengers.

See also

References

  1. ^ http://www.channelnewsasia.com/news/business/budget-carriers-scoot/2794598.html
  2. ^ a b "SIA ESTABLISHES HOLDING COMPANY FOR SCOOT AND TIGER AIRWAYS" (Press release). 18 May 2016. Retrieved 19 May 2016.
  3. ^ "Singapore Airlines reports higher profits but future outlook hinges on Scoot & Tigerair improvements". CAPA. 31 July 2015. Retrieved 17 August 2015.
  4. ^ "APAC budget airlines form largest low-cost carrier alliance". Channel NewsAsia. 16 May 2016. Retrieved 16 May 2016.
  5. ^ "Singapore Air Operators." (Archive) Civil Aviation Authority of Singapore. Retrieved on 31 October 2012. "17 Changi Business Park Central 1, #0Singapore Airlinrs4-06/09 Honeywell Building, Singapore 486073"
  6. ^ "Tigerair Expands Network with New Services to Quanzhou and Lucknow" (PDF).
  7. ^ "Tiger Airways to roar over India skies". domain-b.com. 3 July 2007. Retrieved 1 October 2012.
  8. ^ a b "Tigerair Annual Report 2015" (PDF). Tiger Airways Holdings Limited. Retrieved 23 July 2015.
  9. ^ http://infopub.sgx.com/FileOpen/Level%20of%20Acceptances_29%20Dec%202015.ashx?App=Announcement&FileID=383881
  10. ^ a b "Tiger Airways Annual Report 2010" (PDF). Tiger Airways Holdings Limited. Retrieved 15 November 2013.
  11. ^ a b "Tiger Airways Annual Report 2011" (PDF). Tiger Airways Holdings Limited. Retrieved 15 November 2013.
  12. ^ a b "Tigerair Annual Report 2013" (PDF). Tiger Airways Holdings Limited. Retrieved 15 November 2013.
  13. ^ "Tigerair Operating Statistics: March 2013" (PDF). Tiger Airways Holdings Limited. Retrieved 15 November 2013.
  14. ^ "Tigerair Annual Report 2014" (PDF). Tiger Airways Holdings Limited. Retrieved 23 July 2013.
  15. ^ "Tigerair Operating Statistics: March 2014" (PDF). Tiger Airways Holdings Limited. Retrieved 4 May 2014.
  16. ^ "Tigerair Operating Statistics: March 2015" (PDF). Tiger Airways Holdings Limited. Retrieved 11 April 2015.
  17. ^ "List of Aircraft on the Singapore Register - 31 March 2015" (PDF). Tiger Airways Holdings Limited. Retrieved 11 April 2015.
  18. ^ "List of Aircraft on Singapore Register". Civil Aviation Authority of Singapore. 31 October 2016. Retrieved 31 October 2016.
  19. ^ "Tiger Airways looks to the future with fleet of 70 A320 aircraft" (Press release). Airbus. 18 December 2007.
  20. ^ "Tigerair to Right-Size Operations with Sublease of 12 Aircraft to IndiGo" (PDF).
  21. ^ "Tigerbites".
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