Case Analysis Of Tiger Airways
Introduction
Tiger Airways is a company that based in Singapore, which founded in 2003 and started operations after the half passed of 2004. Tiger Airways is the subsidiary company of Singapore Airlines and it was the first Budget airline that went into Changi Airport (Changiairport.com, 2014). Within two years of operation, Tiger Airways has successfully flews 1.2 millions of passengers and achieve a major growth of 75% in 2006. Followed by, the business then expanded into Australia in 2007 and gradually to Mandala, Philippines and Taiwan (Adhikari, Alfuntukh and Binzamil, 2014). In 2010, Tiger Airways listed on the Singapore stock exchange (Destinationtravel.info, 2013).
In order to stay away from the bad reputation that built from the …show more content…
The company had chosen a low fares strategy to attract the customer. The strategy was keep the entry fares low and emphasized the profit sources from the accompaniment such as meal and luggage (Singapore Business Review, 2011). With this they have made travel affordable for the people. This strategy was used since the started of operation. In this case, Tigerair duplicated Ryanair’s way of operating, which is provides zero free services to the consumers (Destinationtravel.info, 2013). With this, it allowed them consistently offer the low rates fares to the customer at the same time make the company profitable which resulted a win-win …show more content…
With the low entry fares, Tigerair had achieved high passenger rate continuously, which able to minimize the fix cost (Singapore Business Review, 2011). As the key profit sources of Tigerair is from the add-ons that passenger spent, therefore more passenger on board will increase the company’s revenue. The company has understood the demand of consumer, which is low fare price and decide to earn the main profit from the compliance that do not really cost to the company.
With the low fares strategy, Tigerair have made the air travel more affordable for the customers. Besides, the fast growth of low fares strategy in the industry has certain affect on the business of FSCs (Aerlines Magazine, n.d.). Unlike situation before the rise LCCs, now the consumers have more choices and cheaper fares to fly to the same destination. As, the destination is same, consumer may choose the one that cost less. This is the reason that low fares strategy can affect and acquired part of the market of
Tiger Airways is a company that based in Singapore, which founded in 2003 and started operations after the half passed of 2004. Tiger Airways is the subsidiary company of Singapore Airlines and it was the first Budget airline that went into Changi Airport (Changiairport.com, 2014). Within two years of operation, Tiger Airways has successfully flews 1.2 millions of passengers and achieve a major growth of 75% in 2006. Followed by, the business then expanded into Australia in 2007 and gradually to Mandala, Philippines and Taiwan (Adhikari, Alfuntukh and Binzamil, 2014). In 2010, Tiger Airways listed on the Singapore stock exchange (Destinationtravel.info, 2013).
In order to stay away from the bad reputation that built from the …show more content…
The company had chosen a low fares strategy to attract the customer. The strategy was keep the entry fares low and emphasized the profit sources from the accompaniment such as meal and luggage (Singapore Business Review, 2011). With this they have made travel affordable for the people. This strategy was used since the started of operation. In this case, Tigerair duplicated Ryanair’s way of operating, which is provides zero free services to the consumers (Destinationtravel.info, 2013). With this, it allowed them consistently offer the low rates fares to the customer at the same time make the company profitable which resulted a win-win …show more content…
With the low entry fares, Tigerair had achieved high passenger rate continuously, which able to minimize the fix cost (Singapore Business Review, 2011). As the key profit sources of Tigerair is from the add-ons that passenger spent, therefore more passenger on board will increase the company’s revenue. The company has understood the demand of consumer, which is low fare price and decide to earn the main profit from the compliance that do not really cost to the company.
With the low fares strategy, Tigerair have made the air travel more affordable for the customers. Besides, the fast growth of low fares strategy in the industry has certain affect on the business of FSCs (Aerlines Magazine, n.d.). Unlike situation before the rise LCCs, now the consumers have more choices and cheaper fares to fly to the same destination. As, the destination is same, consumer may choose the one that cost less. This is the reason that low fares strategy can affect and acquired part of the market of