Tiger Air's CEO Confirms Making Losses

[makapaaa]

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Coffeeshop Chit Chat - Tiger Air's CEO Confirms Making Losses</TD><TD id=msgunetc noWrap align=right>

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http://www.news.com.au/heraldsun/story/0,21985,25635708-664,00.html
Heraldsun.com.au, 15 Jun 2009, Geoff Easdown

TIGER airlines chief Tony Davis says the low cost carrier's local operations are throwing off enough cash to give it confidence to continue its push into the Australian market.

But he admits Tiger is not yet profitable and declines to say when there will be black ink on the airline's balance sheet.

"We are not breaking even yet, but the key thing for us is that we have demonstrated that the business is cashflow positive," he told BusinessDaily in a phone interview from Singapore.

"We are generating enough cash from our Australian operations to give us confidence to keep running the business.

"We haven't had to go to our shareholders for funds. And that indicates the business is generating enough cash."

Mr Davis acknowledged how tough the market had been since Tiger launched 18 months ago in Australia.

Record fuel prices and customer flack caused by poor client relations have not helped the company's image.

A decision to keep Tiger's call centre staff on hard-to-reach telephone lines in Singapore proved disastrous.

"Some of the cost assumptions we put together were clearly wrong," Mr Davis said.

"What we have done now is to put more services into Australia."

Tiger will soon include daily services from Melbourne and Adelaide to Sydney.

The airline has also chosen to have the heavy engineering checks on its fleet of six A320 commuter jets carried out in Melbourne, whereas it would have been done at low-cost engineering workshops in Asia.

"And, we have also shifted customer relations into Australia," Mr Davis said.

However he became defensive when asked why Tiger's recently issued full-year traffic results were written in percentages and not hard numbers.

"What we are not going to do is to lay out in graphic detail exactly how well we are doing and what routes are performing best," Mr Davis said.

"That would allow Qantas and Virgin Blue to start picking our business to pieces."

While Tiger's results for Asia and Australia show full-year seat capacity soared 43.1 per cent and that gross revenue was up 25 per cent during the past year, no one knows how these percentages translated to real earnings.

Tiger is a privately owned joint venture between Singapore Airlines, Irish-based discounter RyanAir with a third party US investor and, therefore, is not obliged to make its accounts public.
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[halsey02]

"A decision to keep Tiger's call centre staff on hard-to-reach telephone lines in Singapore proved disastrous.

In other words, they shouldn't have employed SINgapore workers to man the lines?, and outsource this to 'outer Mongolia" or "Timbutu in Afirca"?

 

[tonychat]

of course make losses lah, the way they do business only pissed the customer off. With my whole thread of more than 6 pages of complaints, it is no surprise.

 

[congo9]

Yesterday we just came back from Phuket by tiger airway. We paid extrra for allocated seats, to and fro becos we are going in groups with young kids.

When we get our sitting arrangement, my friends was shocked that their seats have been seperated. Means that they have to sit seperate from their kids.

When we enter the plane, what shocked me is that they have role 1 , 2 , 3 and then it skip rowNUMBER 4 !!!!!!!!!!!!!!!!!! and they continue with 5 and so on ! This kind of service standard is damn terok. This explain why some of my friends who got the allocated seats but force to sit seperate !

Tiger AIR ?????????????

 

[yellow_people]

"A decision to keep Tiger's call centre staff on hard-to-reach telephone lines in Singapore proved disastrous.

In other words, they shouldn't have employed SINgapore workers to man the lines?, and outsource this to 'outer Mongolia" or "Timbutu in Afirca"?

"What we have done now is to put more services into Australia."

I recall reading an article on YawningBread that struck me when I read Tony Davis comment that keeping the call centre in Singapore proved disastrous. See the article below where Alex

http://www.yawningbread.org/arch_2004/yax-360.htm

Excerpts from the essay"

And in this case, it seems Australia, despite its higher per capita income, was judged by Zuji to give better value.

I can imagine many factors in that country's favour: a friendlier people, thus a more pleasant pitching of the voice; greater ease with the English language, thus better able to articulate what the problem is and how to go about solving it. Almost surely, Australians tend to display more personal initiative (as opposed to falling back on rules), so essential to being successful in helping customers. In addition, Australia can boast of lower rents, outside of downtown Sydney or Melbourne at least.

....

And these are Singapore's weaknesses. Our slightly lower labour cost does not compensate for the much poorer quality of people that we have. Our language skills are poor, our customer service attitudes dreadful, and problem-solving skills as rare as snow on this tropical island. Not to mention how the government, through its monopolistic pricing of development charges, has raised property prices, and consequently rents, to punitive levels.

 

[tonychat]

Check out "Boycott Tiger Airways Poll"

http://sammyboy.com/showthread.php?t=27523

 

[2lanu]

Sooner the whole SEA will only have one budget airline. No prize for guessing the right one.

 

[makapaaa]

"A decision to keep Tiger's call centre staff on hard-to-reach telephone lines in Singapore proved disastrous.

In other words, they shouldn't have employed SINgapore workers to man the lines?, and outsource this to 'outer Mongolia" or "Timbutu in Afirca"?

It's not the underhanded staff's fault. The insatiably greedy Papaya dogs shaking legs at the top are the ones that should be FCUKED HARD.

 

[Cestbon]

Sooner the whole SEA will only have one budget airline. No prize for guessing the right one.

Everyone know "Everyone Can Fly". The Airline have more than 50 new A320 in the flight.

 

[tonychat]

Don't you love it when a sinkie airlines falls..

If they cannot do business, then shut it up, why trouble others and cause inconveniences,

 

[2lanu]

SG is trying to create budget airline in here and at the same time not cut into the national carrier market dominance in here. AirAsia being budget airline does not has this concern.

With budget airline, many now can do biz cheap around the region.

 

[tonychat]

SG is trying to create budget airline in here and at the same time not cut into the national carrier market dominance in here. AirAsia being budget airline does not has this concern.

With budget airline, many now can do biz cheap around the region.

yes i agree with the whole logic on why to set up a budget airline, but if you want to set up any biz, you got to do it in a way not to trouble the customer.

It is the way of doing the biz and not the logic on why it is to be set up , is of concern.

 

[johnny333]

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/432454/1/.html



AirAsia quarterly profits up 26%
Posted: 29 May 2009 0138 hrs


KUALA LUMPUR : Budget airline AirAsia said Thursday its profits rose 26 percent in the three months to March, as it defied the economic downturn and boosted passenger numbers.

"AirAsia once again delivered record profit growth despite operating in one of the most challenging economic environments," chief executive officer Tony Fernandes said in a statement.

The carrier posted net profits of 203.2 million ringgit (57.7 million US dollars) for the first quarter, compared with 161.3 million ringgit a year earlier.

Fernandes said that passenger numbers for the period grew by 21 percent to 3.1 million as the carrier captured market share from competitors and pursued an aggressive route expansion plan.

The Malaysia-based carrier has had a bullish outlook despite the economic downturn, saying it will benefit as cash-strapped travellers switch to low-cost carriers instead of fully fledged airlines.

Average fares rose by 4.5 percent and the airline also benefited from the introduction of schemes to allow passengers to pay a fee to choose their seat and upgrade their baggage allowance.

AirAsia sank into the red in the fourth quarter last year, but blamed the loss on one-off fuel hedging costs and said its performance had otherwise been "phenomenal."

 

[Alamaking]

"What we have done now is to put more services into Australia."


It means we Singaporeans are cheapos, we want ai pi, ai dua liap ni, and we like to complains also, hahahaha

Aussies are more easy to con LOL

 

[cowbehcowbu]

"A decision to keep Tiger's call centre staff on hard-to-reach telephone lines in Singapore proved disastrous.

In other words, they shouldn't have employed SINgapore workers to man the lines?, and outsource this to 'outer Mongolia" or "Timbutu in Afirca"?

Bros..many banks, gov departments..large institution have the same..'TALK TO MY MACHINE..' setup........
one can sometimes talk to the bloody machine for half and hour...then talk to a pinoy or aneh who maybe several thousand miles away........and get martian reply..that direct you..or simply cut-off...and back to talking to machine again........
solution????????