Tigerair Australia Unveils Expansion Plans

To compete with budget airline Jetstar, Tigerair Australia is vowing “sharp pricing” schemes on its fares, in the hopes of luring more travellers.

As analysts put it, next year’s flights are already oversupplied that low-cost airlines will have to deal with the challenge. Tigerair has plans of doubling its operations by 2018, and thus, have to come up with competitive rates. Jetstar, its biggest competition, has already stated that it will hold its position in the domestic market.

Rob Sharp, chief executive of Tigerair said that its the company is aiming to get “a sustainable domestic business” and notes that the company is growing sensible. Mr. Sharp reiterates, however, that even with their plans of expansion at work, they will not be sacrificing yields just to fill up flights. Mr. Sharp presented Tigerair’s long term plans with the board that includes the CEO of Virgin, Mr. John Borghetti.

With majority stakeholder Virgin behind them, the company is hopeful it will become profitable in the next two years.

Tigerair has had a huge setback a few years back when it had been grounded by the airline authorities. It experienced a loss of $226 million, but have started to bounce back, specifically in Australia in 2007.

Early this year, the airline has added new destinations to its list, such as Coffs Harbour and Alice Springs. In the following months, the company is keen on delivering two more Airbus A320s to their current fleet with 13 aircrafts.

Added Mr. Sharp, “Competition is good. This is not just about putting in $99 fares for the sake of it. It will be market driven.”