Tiger brings forward more aircraft deliveries

[Marty H]

Lukas,

Correct on what your saying about sub $40 fares, now this is the disadvantage of AVV because unless your offering dirt cheap fares (pax have to take in account extra travel costs) your not going to attract passengers, so straight away your hurting your yeilds, sure you may squeeze out JQ but they have a big foothold at MEL so they may say well and good Tiger can have AVV and go bust down there, that is why JQ have slowly pulled out of their because their yeilds are that low, just to attract a passenger to the airport is a task in itself, nobody questions a $70 fare out of MEL because if they were to fly with any other airline that where they have to go anyway, going to AVV is 'going out of your way' so airlines need to compensate.

[Adrian B]

Interestingly, each flight in and out of YMAV in the last 3 months I have been on (4 returns) have been full bar 1 or 2 seats, especially the 6am ymav departure and the 2150 yssy departure. Lots of business people as well.

[Michael Morrison]

I thought JQ pulled out of AVV in preference of MEL to be more competitive with Tiger. If Tiger retreat to AVV, surely JQ are the ones with the upper hand?

[Marty H]

Pretty much Michael as I said in my last post JQ will more than likely let them go and effectively won the battle to 'squeeze' Tiger out of MEL, as I said harder to get good yield out of AVV when you have to discount fares to make AVV attractive.

[Mike W]

Isn't Tiger expanding to Avalon rather than downsizing at Melbourne? If so then it's hardly being "squeezed" out of MEL

[Marty H]

According to the article in this weeks Herald Sun they are leaving MEL and moving all operations to AVV.

Isn't Tiger expanding to Avalon rather than downsizing at Melbourne? If so then it's hardly being "squeezed" out of ME

Bingo.
The Herald Sun knows nothing about the deal. Melbourne is not changing, its just they need a place to base all these upcoming arrivals. Melbourne Airport wont take anymore than 6 Tiger A320's, Adelaide might see another aircraft in the future aside from #3 which is VNK floating around now.

For all we know, Melbourne Airport could be working out ways to base 7+ Tiger Aircraft down at T4 to avoid losing business to Avalon while this deal is still kept under wraps. But as Im sure you know Marty, there is seriously not much room overnight anymore Tiger 320's.

[Marty H]

So your saying that the Herald Sun is passing on false information The media often twist stories to make them seem more dramatic but I highly doubt they are going to make up a whole story.

[Justin L]

Marty,

Time will tell whether Tiger pulls out of MEL completely or not. Lukas M's information on Tiger has been pretty accurate during his time on the board so to me at least his comments are just as valid as the information from the "usually reliable spy" mentioned in the Herald Sun article.