Virgin Australia COO Sean Donohue, speaking at the CAPA Australia Pacific Aviation Summit, stated (07-Aug-2013) the rationale behind the acquisition of Skywest Airlines in Apr-2013 is to better compete in the Australian regional and charter market, while the 60% acquisition in Tigerair Australia is to compete in the low-cost market. Mr Donohue noted the carrier's
Virgin Australia rationale for the acquisition of Tigerair Australia is to compete in the LCC market
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CAPA Perspectives: Tigerair Australia has finally lost its teeth
The Tigerair Australia adventure has rarely gone smoothly, but it has finally lost its teeth. Indeed it may cease to exist in the coming months with a possible rebranding. Originally part of the Singapore-based Tiger Airways Holdings, the carrier had bumpy beginnings culminating in the honour of being the first Australian airline to be grounded by CASA. Now fully-owned by Virgin Australia, to call Tiger stagnant in 2016 would under-represent a carrier flying less domestic ASKs than it was two years ago but with a larger fleet.
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.