Tiger Air closes for good

 
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
https://www.abc.net.au/news/2020-09-10/tigerair-folds-under-coronavirus-pandemic-pressure-virgin/12652740?section=business

Another airline brand closes after forgetting that businesses are supposed to run at a profit and to do so you charge accordingly.

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  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
I still don't understand why Virgin bought it from Singapore Airlines, it was bleeding red ink for years.
  bevans Site Admin

Location: Melbourne, Australia
I still don't understand why Virgin bought it from Singapore Airlines, it was bleeding red ink for years.
don_dunstan

A very good point what was the strategy?  If it was bleeding then roll it into the virgin brand which  I i recall was supposed to be a low cost airline when it launched in Australia?
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
I still don't understand why Virgin bought it from Singapore Airlines, it was bleeding red ink for years.

A very good point what was the strategy?  If it was bleeding then roll it into the virgin brand which  I i recall was supposed to be a low cost airline when it launched in Australia?
bevans
I haven't flown anywhere this year (for obvious reasons) but I recall that Virgin was always up there with Qantas on its pricing - and frankly I'd prefer Qantas because at least you'd normally get something to eat and drink free of charge.

I think the strategy was to keep Tiger as a low-cost operator distinct from the Virgin brand like Qantas did with Jetstar but frankly I think we're just too-small a market for that many airlines. This has been proven time and time again over the last 30 years.
  bevans Site Admin

Location: Melbourne, Australia
I still don't understand why Virgin bought it from Singapore Airlines, it was bleeding red ink for years.

A very good point what was the strategy?  If it was bleeding then roll it into the virgin brand which  I i recall was supposed to be a low cost airline when it launched in Australia?
I haven't flown anywhere this year (for obvious reasons) but I recall that Virgin was always up there with Qantas on its pricing - and frankly I'd prefer Qantas because at least you'd normally get something to eat and drink free of charge.

I think the strategy was to keep Tiger as a low-cost operator distinct from the Virgin brand like Qantas did with Jetstar but frankly I think we're just too-small a market for that many airlines. This has been proven time and time again over the last 30 years.
don_dunstan

Virgin must have lifted it prices over the period because they were ultra cheap when they launched.  From what I understand they also charge you for a water.  I also fly Qantas although not at the moment for obvious reasons.  When I do go overseas in 2021 it will not be with Qantas but a partner airline as I feel Qantas service has gone through the floor.

Domestically I do not mind.
  Nightfire Minister for Railways

Location: Gippsland
I bought a few dirt cheap $99 Red Eye flights from Perth to Melbourne In the last couple of years (the others were charging deep Into the $200's)
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
I bought a few dirt cheap $99 Red Eye flights from Perth to Melbourne In the last couple of years (the others were charging deep Into the $200's)
Nightfire
Yeah well that was clearly unsustainable wasn't it. The cheapest I've ever had Melbourne to Perth or Adelaide to Perth is around the $400 return mark and that was on Jetstar.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
I still don't understand why Virgin bought it from Singapore Airlines, it was bleeding red ink for years.
"don_dunstan"


Bleeding Red ink, aligned with the Virgin strategy then isn't it!
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
I still don't understand why Virgin bought it from Singapore Airlines, it was bleeding red ink for years.

A very good point what was the strategy?  If it was bleeding then roll it into the virgin brand which  I i recall was supposed to be a low cost airline when it launched in Australia?
I haven't flown anywhere this year (for obvious reasons) but I recall that Virgin was always up there with Qantas on its pricing - and frankly I'd prefer Qantas because at least you'd normally get something to eat and drink free of charge.

I think the strategy was to keep Tiger as a low-cost operator distinct from the Virgin brand like Qantas did with Jetstar but frankly I think we're just too-small a market for that many airlines. This has been proven time and time again over the last 30 years.
don_dunstan

Virgin must have lifted it prices over the period because they were ultra cheap when they launched.  From what I understand they also charge you for a water.  I also fly Qantas although not at the moment for obvious reasons.  When I do go overseas in 2021 it will not be with Qantas but a partner airline as I feel Qantas service has gone through the floor.

Domestically I do not mind.
"bevans"


Having flown QF and EK to/from Dubai, have to say yes EK is a bit ahead, but I won't say alot. Our last flight on QF spent 3h diverting via Muscat off-loading a dead person and was 2h late leaving Mel with another medical case during the flight. QF proved its worth that day.

Overall however having flown many airlines and different routes what makes an airline trip enjoyable is not so much the airline or the brand of plane but its the crowd you are with, your fellow EC (Y) class passengers. Turkish airlines Dubai to Istambul urgh, Istambul to Helsinki great. Almost air flight to India, urgh. Flights to or from Australia not via the ME or carrying a ME crowd, much better. However I mostly choose flights by leg room, so most favorite flight in a long time, Air Azerbaijan. New plane, nice service, 2 English channels on TV, but excellent leg room for this leggy 6'4" guy, all bought for a cool $15 more.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
I still don't understand why Virgin bought it from Singapore Airlines, it was bleeding red ink for years.

A very good point what was the strategy?  If it was bleeding then roll it into the virgin brand which  I i recall was supposed to be a low cost airline when it launched in Australia?
I haven't flown anywhere this year (for obvious reasons) but I recall that Virgin was always up there with Qantas on its pricing - and frankly I'd prefer Qantas because at least you'd normally get something to eat and drink free of charge.

I think the strategy was to keep Tiger as a low-cost operator distinct from the Virgin brand like Qantas did with Jetstar but frankly I think we're just too-small a market for that many airlines. This has been proven time and time again over the last 30 years.
don_dunstan

Virgin must have lifted it prices over the period because they were ultra cheap when they launched.  From what I understand they also charge you for a water.  I also fly Qantas although not at the moment for obvious reasons.  When I do go overseas in 2021 it will not be with Qantas but a partner airline as I feel Qantas service has gone through the floor.

Domestically I do not mind.
"bevans"


The former Virgin CEO had a chip on his shoulder having lost the job of Qantas CEO to the Irishman, so he focused growing VA away from its discount airline roots to a full economy class airline to go head to head with Qantas.

Having done that (not successfully as they were loosing money in the process), they needed a budget brand, aka Tiger to take over what they left and Jetstar was being very successful at. I assume they figured like QF/Jetstar they could make the two brand VA work and make money. Problem is that they forgot the golden rules of doing business, "make a profit". If you a discount airline, you are selling a crumby flight, nothing else and they only reason your great unwashed are flying with is because you are cheap. Unlike full service airlines there is no decent reward programs, personal service, value adding to make your customer happy to hand over money. So if you giving away seats at below cost to gain market share, how do you build customer loyalty on that and then raise prices to make money?

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