Saturday 10 February 2007

The flying Tiger !

Australian travellers must shake their heads in wonder at the announcement of yet another low cost airline about to enter the domestic market. History is littered with the wrecks of airlines that arrived with a fanfare, offered incredibly low fares - and subsequently went into liquidation leaving ticket holders stranded.
This time it may be different. Tiger Airways has credentials. It is 49% owned by Singapore Airlines and the rest of the stock is held by Ryanair - the successful European discount airline that has a proven track record of delivering low air fares.
There is talk of seat prices from as low as $ 10. That seems an impossible target, given that fares on a bus between Sydney and Canberra are many times that figure. Most people feel that the existing domestic airlines - Virgin Blue, Qantas with it's subsidiary Jetstar and Rex - artificially inflate ticket prices and there is room for a price drop given some real competition.
One of the problems to cheap fares is the small population of this country. Compared to such a huge market as the United States the possibility of simply rolling airplanes through terminals and filling them with passengers on the basis of the first few hundred in the cheque get a seat - and the remainder await the next plane loading a few minutes from now - is remote.
The " Flying Tiger " will be welcome, and with such distinguished parentage it has a very good chance of success. Let us hope that it has better good fortune than those that preceeded it !

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