Tiger Airways: Case Study Of Singapore Airlines In Singapore

Tiger Airways is a company that based in Singapore, which founded in 2003 and started operations after the half passed of 2004. It 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 flew 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 past, Tiger Airways had changed
This alliance had benefits both customer and the companies. The connection allowed customers from both Tigerair and SpiceJet to enjoy better services. Recently, Tigerair had an alliance with the Cebu Pacific, which is the largest LCC in Philippines. As the third partnership in Tigerair, these have definitely widen the market share and increase competitive advantage for Tigerair. Besides, through alliances the company able to reduce the cost and time on transfer the knowledge own by the other company (Grant and Fuller, 2004).
Although these strategic alliances have effectively worked in the company, but there are disadvantages too. When building strategic alliances, one of the problems will face is the conflict of agency within the company (Grant and Fuller, 2004). Besides, alliances have a risk that when one side of partner did not manage the project properly it will cause an effect for both which cannot be control. As decisions making is still based on both sides therefore conflict might happened when both have different objectives and goals (Zamir, Sahar, and Zafar,