Tigerair Australia CEO Rob Sharp, speaking at the CAPA Australia Pacific Aviation Summit, stated (09-Aug-2013) the carrier plans to add one A320 in 4Q2013 and one A320 in 1Q2014. These aircraft account for the last two of the 10 A320 deliveries slated for Tiger Airways Holdings in the fiscal year ending 31-Mar-2014 (FY2014). Singapore-based Tiger Airways Holding previously said that of the group’s 10 deliveries for FY2014 that Tigerair Singapore would receive six aircraft, Tigerair Mandala would receive two aircraft and the other two had not yet been allocated. Tiger Airways Holdings recently completed the sale of a 60% stake in Tigerair Australia to Virgin Australia, leaving Tiger with a 40% share. Tigerair Australia currently operates 11 A320s entirely in the Australian domestic market. The carrier is currently reviewing network options, including opportunities for deploying the two additional aircraft that will be added to the fleet in late 2013 and early 2014.
Tigerair Australia to add two A320s late 2013/early 2014
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Tigerair Australia Pt 1: Virgin Australia LCC subsidiary completes transformation with first profit
Tigerair Australia has completed a challenging turnaround, with its first annual profit. The LCC, now a fully owned subsidiary of Virgin Australia, was profitable for the first time in its nine-year history in the year ending 30-Jun-2016.
Synergies with Virgin Australia, operational improvements and network adjustments have contributed to the transformation. Virgin Australia has joined its rival Qantas in employing an effective two brand strategy, with Tigerair Australia focused entirely on the leisure sector.
This is the first in a two-part series of reports on the recent performance and outlook for Tigerair Australia. This article will focus on its transformation and newfound profitability. The second will look at potential areas for future long-term growth, including in the international market and with partnerships.
Tigerair Australia Part 2: LCC looks to Value Alliance to drive near-term growth opportunities
Tigerair Australia has no immediate plans for expanding its international operation, which launched with three routes to Bali in Mar-2016. However, the Virgin Australia LCC subsidiary plans to expand its international network virtually by linking up with partners from the newly formed Value Alliance.
The Bali operation has been relatively successful, despite the use of aircraft wet-leased from its full service, higher-cost parent. However, for now Tigerair Australia is focused on transferring the three Bali routes to its own fleet as part of a transition from A320s to 737s, rather than pursuing growth.
The Virgin Australia LCC subsidiary could potentially pursue international growth once it secures regulatory approvals to operate international services with its own operator’s certificate. Some domestic growth is also possible once it completes the transition from A320s to 737s in 2019.