The Singapore LCC sector Part 2: Tigerair cuts capacity on 13 routes while Jetstar quietly expands
Singapore-based LCC Tigerair has cut capacity on 13 routes and suspended seven routes entirely as part of a network restructuring. The cuts have driven a reduction in Singapore's LCC penetration rate and led to a better supply-demand balance in a market which had been - and to some extent still is - suffering from overcapacity.
But the reductions at Tigerair also have created opportunities for competitors. While one of the other two main LCC players in the Singapore LCC sector, AirAsia, also has responded to the challenging market conditions by cutting capacity, Jetstar has quietly expanded.
Jetstar has added capacity over the last year on nine of the 13 routes it competes against Tigerair. Most of these routes have seen Tigerair reductions.
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