Normally, companies will expand their profit-making businesses, and cut their loss-making ones. But for our SIA's TigerAir, it is doing exactly the opposite, expanding their loss-making activities to make even bigger losses. Only GLCs can come up with such "brilliant" biz strategy - expanding market share in a unprofitable market. BRILLIANT! 
http://www.news.com.au/heraldsun/story/0,21985,25024955-664,00.html
Tiger defies downturn
Geoff Easdown
February 09, 2009 12:00am
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TIGER Airways intends to defy the troubled aviation market by pressing ahead with its plan to expand its loss-making activities in Australia.
The Singapore Airlines-controlled low-cost operator says it will resume morning flights from Melbourne next month and will proceed with its plan for a second Australian base in Adelaide with two new aircraft.
The moves come despite an operating loss in Australia last financial year of $12.8 million and start-up costs of $7.8 million in 2007 which Tiger has yet to recover.
Tiger Aviation, the parent company of Tiger Airways and Tiger Airways Australia, generated a $S9.9 million ($A10.6 million) consolidated profit from its various airline business last financial year, turning around the $S14.8 million loss reported a year earlier.
This month the Australian business suspended all morning flights from Melbourne, claiming it was better to leave aircraft on the ground than take off with cabins near-empty during the post-holiday period in which all airlines report low passenger numbers.
At the same time Tiger has shelved a joint venture project with the the Incheon Metropolitan City Government to operate a new airline servicing China, Japan, east Russia and Mongolia from South Korea.
The South Korean business, which was due to begin services in August, came up against regulatory hurdles imposed by the Korean Ministry of Transport, which sought to protect local carriers from outside competition.
It is not clear how the failure of its South Korean venture will impact future aircraft deliveries.
Tiger has seven A320s scheduled for delivery in 2009.
Industry specialists, including Sydney's Centre for Asia Pacific Aviation, suggest the collapse of the partnership could put extra pressure on the Australian and Singapore-based Tiger businesses.
Matt Hobbs, the official spokesman for Tiger, said yesterday that rather than firing people the airline was hiring staff and acquiring aircraft.
Two new 180-seat jetliners -- one of which has arrived in Melbourne this month from the Airbus factory in Toulouse, and a second due at the end of the month -- will be based in Adelaide.
Both are scheduled to fly five new interstate services each day from the South Australian capital to Perth, Canberra, Melbourne, the Gold Coast and Alice Springs.
Forty new staff, including pilots and flight crew, had been hired for the Adelaide operation, Mr Hobbs said, adding that the four A320 jets operating from Melbourne would return to normal schedules from March.
"Contrary to what some people have been thinking, we are not pulling out -- we are growing the business," Mr Hobbs said.
Qantas and Virgin Blue have cut services during the last few months to match falling demand.
http://www.news.com.au/heraldsun/story/0,21985,25024955-664,00.html
Tiger defies downturn
Geoff Easdown
February 09, 2009 12:00am
<!-- Split page --> <!-- Lead Content Panel -->
TIGER Airways intends to defy the troubled aviation market by pressing ahead with its plan to expand its loss-making activities in Australia.
The Singapore Airlines-controlled low-cost operator says it will resume morning flights from Melbourne next month and will proceed with its plan for a second Australian base in Adelaide with two new aircraft.
The moves come despite an operating loss in Australia last financial year of $12.8 million and start-up costs of $7.8 million in 2007 which Tiger has yet to recover.
Tiger Aviation, the parent company of Tiger Airways and Tiger Airways Australia, generated a $S9.9 million ($A10.6 million) consolidated profit from its various airline business last financial year, turning around the $S14.8 million loss reported a year earlier.
This month the Australian business suspended all morning flights from Melbourne, claiming it was better to leave aircraft on the ground than take off with cabins near-empty during the post-holiday period in which all airlines report low passenger numbers.
At the same time Tiger has shelved a joint venture project with the the Incheon Metropolitan City Government to operate a new airline servicing China, Japan, east Russia and Mongolia from South Korea.
The South Korean business, which was due to begin services in August, came up against regulatory hurdles imposed by the Korean Ministry of Transport, which sought to protect local carriers from outside competition.
It is not clear how the failure of its South Korean venture will impact future aircraft deliveries.
Tiger has seven A320s scheduled for delivery in 2009.
Industry specialists, including Sydney's Centre for Asia Pacific Aviation, suggest the collapse of the partnership could put extra pressure on the Australian and Singapore-based Tiger businesses.
Matt Hobbs, the official spokesman for Tiger, said yesterday that rather than firing people the airline was hiring staff and acquiring aircraft.
Two new 180-seat jetliners -- one of which has arrived in Melbourne this month from the Airbus factory in Toulouse, and a second due at the end of the month -- will be based in Adelaide.
Both are scheduled to fly five new interstate services each day from the South Australian capital to Perth, Canberra, Melbourne, the Gold Coast and Alice Springs.
Forty new staff, including pilots and flight crew, had been hired for the Adelaide operation, Mr Hobbs said, adding that the four A320 jets operating from Melbourne would return to normal schedules from March.
"Contrary to what some people have been thinking, we are not pulling out -- we are growing the business," Mr Hobbs said.
Qantas and Virgin Blue have cut services during the last few months to match falling demand.
