Tiger Airways

Tiger Airways Singapore Pte Ltd, operating as Tiger Airways Singapore, is a low cost airline which commenced services on 25 March 2005. It is a subsidiary of Tiger Airways Holdings, a Singapore-based company, which is owned partially by Singapore Airlines. Incorporated in September 2003, it is currently the largest low-cost airline operating out of Singapore in terms of passengers carried. In 2006, the airline flew 1.2 million passengers, a growth of 75% from the previous year.

The airline was the first to operate from the Budget Terminal in Changi Airport in order to achieve operating-cost savings and its cost structure is modelled after Ryanair. Despite regional competition, the airline has reiterated its current intention to remain focused on flying within a five-hour radius from its Singaporean base. To overcome regulatory hurdles in the region, the airline attempts to buy into regional carriers to expand into a pan-Asian carrier.

Flights to India started in October 2007, and expansion to Malaysia was started in 2008. Former plans to establish new hubs at Incheon, Korea have been suspended.

Incheon Tiger Airways

On 5 November 2007, Tiger Airways announced that it would be starting a Korean-based budget airline. Incheon Tiger Airways was to have been a joint venture between Tiger Aviation and Incheon Metropolitan City, flying to destinations in Japan, China, Mongolia and the Russian Far East. The airline was to be based in South Korea's Incheon Airport and planned to begin services by 2009; however, the project was abandoned in December 2008.

Thai Tiger Airways

Tiger Airways and Thai Airways International will form an airline based in Thailand, where Thai Airways International and Tiger Airways will own 51% and 39% respectively of the newly formed airline, while RyanThai will hold the remaining 10%. Operations are expected to begin in the 1st quarter of 2011.

Tiger Activity in Philippines

In December 2010, Tiger enter the Philippines market by proxy, without setting up an airlines in Philippines. Instead, Tiger goes into partnership with South East Asian Airlines(SEAir), whereby Tiger will lease aircraft to SEAir, and SEAir will operate the aircraft in SEAir's livery, using SEAir's pilot and cabin crew. Seats on the flight operated by SEAir using aircraft leased from Tiger will be sold and marketed by Tiger for SEAir. This Tiger/SEAir partnership began with international flight departing from Clark to Singapore, Hong Kong, and Macau; it was then expanded to domestic flight from Manila(NAIA) to Cebu and Davao. These flight will only show up on Tiger's website route-map. Shortly after SEAir and Tiger launch the partnership, Philippine Airlines, Cebu Pacific, Zest Airways, and Air Philippines send a letter of protest to the Department of Transportation and Communication. They claim the partnership between SEAir and Tiger is illegal and requested the authorities to stop flights operating under the partnership.

Tiger Activity in Indonesia

Tiger Airways ventured into Indonesia market by buying 33% shares of the troubled Mandala Airlines. The new Mandala Airlines will fly Indonesia domestic destination, as well as international destination within 5 hours radius.

Corporate management

Tiger Airways is wholly owned by Tiger Airways Holdings Limited, a holding company set up in 2007 to manage both Tiger Airways and start-up Australian subsidiary Tiger Airways Australia. Tiger Airways' original founding shareholders were Singapore Airlines (49%), Bill Franke's Indigo Partners (24%); Tony Ryan's Irelandia Investments (16%) and Temasek Holdings (11%). Tiger Airways Holdings Limited is listed on SGX since 2010.

History

The airline was incorporated on 12 December 2003 and began ticket sales on 31 August 2004. The airline flew into a period of relative difficulty for the aviation industry with rising oil prices and intense competition from other airlines. The airline held off imposing fuel surcharges as its competitors had done.

With Singapore Airlines having a stake in the airline, the airline occasionally fills in the gap when SIA drops its services from certain destinations. Macau, once served by SIA before being taken up by its subsidiary, SilkAir, in 2002, terminated all flights completely by the end of 2004. Three months later, the route was taken over by Tiger Airways with flights commencing 25 March 2005. A similar pattern can be observed in Krabi, where SilkAir suspended services in February 2005 in the wake of the effects of the 2004 Indian Ocean earthquake. Tiger Airways resumed direct services to the location from 7 October 2005.

In late July 2005, it was announced that the airline would commence flights from Macau to Manila (Clark) on 30 October 2005, a much-heralded move as it may signal the establishment of a secondary base besides Singapore, allowing the airline to expand and diversify risks.

On 21 September 2005 the company produced a report card on its first year of operations, with a total of over 500,000 passengers carried, 5000 scheduled flights flown, and a flight completion rate of 98.7 per cent. 94 per cent of flight departures and 90 per cent of arrivals took place according to schedule. It acquired four aircraft and launched a total of nine routes – of which four are flown exclusively by the airline – during the year.

The airline expected to increase its fleet to nine Airbus A320 aircraft by end 2006, and to carry up to three million passengers a year by then. It also hoped to add six more routes during the year, primarily to destinations in China and India, with flights to Southern China having commenced April. The airline also announced its switch from Singapore Airport Terminal Services to Swissport for ground handling when it becomes the first airline to operate at the newly opened Budget Terminal in Changi Airport on 26 March 2006.

Tiger Airways became the first Singaporean low-cost carrier to receive operating permits from the Chinese aviation authorities to fly to the southern Chinese cities of Haikou, Guangzhou and Shenzhen in an announcement on 21 February 2006. Ticket sales to these destinations commenced 24 February 2006, with the first flight to Shenzhen taking place on 15 April, to Haikou from 26 April and to Guangzhou from 27 April 2006. The airline has since indicated that the routes were highly popular, with increased flights to Haikou and Guangzhou less than three months since their launch.