Tiger Airways:
Tiger Airways was formed and have been in operation since 2004 as the LCC (low-cost-carrier) of Singapore Airline. The Tiger Airline's 49% share held by Singapore Airline, 16% held by Irelandia Investment Ltd, 24% held by Indigo Partners, and 11% held by Temasek (Poon and Waring, 2010). Tigerair business model is based on LCC that is intended to remain low operational cost, operational simplicity, and maintain better positioning. The airline have been generating revenues through the stipulation of additional products and services. LCC, Low cost carrier refer to those air services providers focus on reducing their cost in order to achieve low tariff comparable with competitors, and this is their major competitive strategy on the particular LCCs (low cost carriers) market place
Industry Analysis:
Low cost airlines trend is increasing in last ten-twelve years. This trend is also well supported by biggies such as Singapore Airlines, which has 49% stake in Tiger Airways to maintain and regain the …show more content…
However, the Group had disclosed aggressive plans to grow their businesses by setting up joint ventures in Thailand ( 39.0%), Philippines (SEAIR: 32.5%) & recently Indonesia (Mandala: 33.0%). Tiger Airways, SEAIR had commenced operations with 2 fleet, while the commencement date of operations for the other two Joint Ventures are going to be announced soon. . They believe that these 3 Joint Ventures would collectively require the balance of the net increase in aircrafts/fleet to be delivered in year 2011-12. They also discoursed that this strategy of setting up JVs across Asia would give them more flexibility of deploying their aircrafts/fleet to seek the best potential returns. However, they had not factored in potential earnings and investments into these Joint Ventures yet as earnings visibility are not clear at the