SIA’s budget airline, Tiger Airways, set to capture Asian budget travel market

Singapore Airlines’ (SIA) budget airline, Tiger Airways, is set to capture the still untapped budget travel market.

In a press briefing Monday night before its inaugural flight to Clark, Pampanga, Tiger Airways president and chief executive officer Tony Davis assured that it is not out to grab market share from regular commercial airlines.

Instead, according to Davis, Tiger Airways is set to "grow" the market by tapping budget travelers who could not, otherwise, afford the regular commercial airfares.

Likewise, Tiger Airways will not compete for space at the already congested Ninoy Aquino International Airport (NAIA) but has instead chosen to tap the still under-utilized Diosdado Macapagal International Airport (DMIA) in Clark, Pampanga.

Tiger Airways, in many ways, is set to usher in a new way of travelling for Filipinos with just basic air travel and no frills.

A one-way ticket from Clark to Singapore will cost just P1,368 or $25 excluding travel tax and airport fees for midweek travel from June 6 to July 31 this year.

Davis explained that midweek travel would generally cost less than weekend flights which are normally in demand.

Booking would be done directly through the internet by travelers.

Tiger Airways, Davis explained, does not necessarily go through travel agents and instead wants to establish a personal relationship with its clients.

Although the cost of travelling on Tiger Airways will not include any meals and a limited baggage allowance of just 15 kilos, Davis explained that the traveler can still buy food on board or pay for extra baggage allowance.

The airline, Davis admitted, would discourage passengers from bringing their own food.

Initially, Davis revealed, only sandwiches, soft drinks and some alcoholic beverages would be sold on board.

However, Tiger Airways is already testing some hot food items.

Tiger Airways is initially scheduling three flights a week to Clark, but plans to increase the frequency to five times a week depending on the response of Filipinos.

The budget airline will also offer a P300 shuttle service from SM Megamall to Clark for passengers from Metro Manila.

The choice of using DMIA-Clark, Davis said, was logical since the airport is under-utilized, giving Tiger Airways more flexibility to schedule its flights.

Further down the line, Davis said, Tiger Airways may be interested in flying to Cebu or Davao.

At present, Tiger Airways flies to nine destinations in five countries.

Tiger Airways started flying in September 2004.

It is majority controlled by Singapore Airlines (49 percent) and the Singapore Government through Tomasek Holdings (11 percent).

The remaining 40 percent is owned by Indigo Partners of Bill Franke of Ameri Quest and Islandia Air of Tony Ryan of Ryan Air.

Tiger Airways is not investing anything in ground staff or facilities in Clark, Davis explained, primarily to keep cost down.

It currently has six brand new Airbus A320 to fly its nine international routes.

It flies to Macau in China; Bangkok, Chiang Mai, Phuket and Hat Yai in Thailand; Hanoi and Ho Chi Minh City in Vietnam and to Clark-Pampanga in the Philippines.