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Monday, July 30, 2012

Tiger still losing money.

Tiger are still struggling to turn a profit releasing a $21M AUD loss in the three months to June 30th.  Tiger is still recovering from the CASA grounding last year, and are fighting competition on main routes from Qantas, Virgin Australia and Jetstar.
''We may see a delay in profitability, but our competitors are going to feel it as well,'' he said yesterday.
AdvertisementBy October, Tiger plans to be operating the same number of flights - 64 sectors a day - it had before the air-safety regulator grounded it for six weeks last year. The airline is still waiting for the Civil Aviation Safety Authority to respond to its request to have all flight restrictions removed.
Tiger's return to full service will add to the glut of flights in the domestic market. The routes to have the biggest increases in seat capacity include the country's busiest, between Sydney and Melbourne (up 18 per cent year on year), and Melbourne-Hobart (up 70 per cent).
Its suffice to say if it wasn't for the deep pockets of Tiger's parent company, then this airline, like previous competitors, would not be able to survive on its own in the current economic conditions.

Read more about the trials Tiger are facing via brisbanetimes.com.au HERE

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