Tiger to Avalon

[Dan Hammond]

TROUBLED Tiger Airways is believed to be in advanced talks with Lindsay Fox's Linfox about moving its operations from Melbourne Airport to Avalon.

Industry sources said the budget airline was discussing the relocation of its business to Mr Fox's Avalon Airport, the original Victorian base for Qantas' low-cost carrier Jetstar.

Like many of its industry peers around the world, Singapore Airlines-controlled Tiger is believed to be under extreme financial pressure because of the uncertain global economy and fluctuating oil prices.

A spokeswoman for the airline, Vanessa Regan, said only that Tiger was in "continual discussions with all airports about its growth strategy".

A spokesman for Mr Fox's company Linfox, Gary Max, declined to comment on whether the company was in negotiations with Tiger about a move to Avalon.

Because it is a privately-owned company, Tiger is not required to disclose in its accounts any losses it may have incurred.

However, Tiger's managing director, Tony Davis, conceded in July that Tiger was yet to turn a profit in the tough Australian market.

Tiger is believed to be under particular pressure on the busy Melbourne-Sydney route due to fierce competition from Jetstar and Virgin Blue.

Having started flying between Melbourne and Sydney only in July, Tiger is believed to have removed one flight on that route to fund its new Sydney-Coolangatta service announced last week.

Asked whether there had been that change in the flight schedule, Tiger's Ms Regan said the airline's network was "adapted in response to customer and seasonal demand".

Aviation analyst Brent Mitchell said Tiger may see an opportunity at Avalon as Jetstar was moving a lot of its services to Melbourne Airport.

``The advantage of Avalon is that it will be substantially lower cost,'' he said.

``They may see it as a way of operating a Sydney service that offersdh something different from Virgindh Blue and Jetstar.

``Those two, because they have a wider spread of services, are able to subsidise those services to compete against Tiger.''

Mr Mitchell added that Tiger's move to Avalon would be viewed negatively by the industry if it goes ahead.

``The perception of it wouldn't be good for Tiger,'' he said.

``People are going to speculate whether they're going to stay here or not.''

http://www.heraldsun.com.au/business...-1225791897632

If this goes ahead, less displays will probably be a result at the airshow

[Rhys Xanthis]

Jetstar move in to Tullamarine from Avalon.

Tiger move out to Avalon from Tullamarine.

I think that says it all really! Beginning of the end? I think so.

Are Tiger moving their entire base to Avalon- No.
Are they possibly basing the next delivery there cause Tulla is full plus a huge cash grab from Mr Brumby- Yes.

[Marty H]

Rhys, I think your on the money, if nearly two years down the track as reported they still arent turning a profit how long do the investors continue to 'flog a dead horse'?

[Owen H]

You can flog it for as long as you want when you have the investors that Tiger have!


There is a lot more at play than just simple mum and dad shareholders at Tiger.

[Steve S... 2]

Had some terrible experience with this airline.

[D Chan]

Originally Posted by Marty H

Rhys, I think your on the money, if nearly two years down the track as reported they still arent turning a profit how long do the investors continue to 'flog a dead horse'?

I think to save face the investors may indeed wield the axe, redeploy them back to Singapore, on routes that actually make money etc.

You will find that the downturn is affecting pax numbers more in Singapore than Australia. Partly the reason why this capacity is coming down here, numbers are down up north, and I would expect more capacity is coming if they dont add any more flights from Singapore. The thing is, they can pull the decent numbers down here, but their **** service is taking them nowhere and keeps dragging them down.

[Oliver Gigacz]

From ABC Online:

Melbourne-based airline Tiger Airways is expanding its services, announcing it will begin flying from Avalon Airport later this year.

It will be the carrier's third Australian base, along with Melbourne and Adelaide airports.

The airline has purchased two new aircraft and says operations at Avalon will create about 90 jobs.

Destinations will be decided based on popular demand.

http://www.abc.net.au/news/stories/2...ction=business

[Harry G]

Avalon spending $ 10ml to upgrade facilities for TT and JQ
todays business section Herald Sun confirmed TT to move to Avalon and 2 new planes will be based there
comment was they are not after moving passengers from Tullamarine but attracting new custoemrs form Avalon side of melbourne
also noted for the first time ever....... Avalon airport ran a large ad in Herlas Sun about avalon being a cut price airport with cheap parking etc etc etc, obvioulsy to go hand in hand with launch of TT services
routes - guess whatever JQ fly but notice from TT web site - like with ADL they are having a poll about where PAX wish to fly to...of interest...Broome.....JQ does not fly there and curently a very expensive destination - if TT snare it will be certainly cause concern to QF and to a lesser extent, DJ and one woulf figure that with JQ ready to launch new planes/routes Broome may be a new destination much to QG disgust I would think (another route being diminshed for the full servcie carrier)