Tiger Airways sets up new division for online revenue opportunities

Tiger Airways is setting up a new business unit built around its website www.tigerairways.com. The initiative is being taken to leverage online revenue opportunities and increase the airline’s global ranking for ancillary revenues.

Published: 18 Nov 2010

Tiger Airways is setting up a new business unit built around its website www.tigerairways.com. The initiative is being taken to leverage online revenue opportunities and increase the airline’s global ranking for ancillary revenues.

tigerairways.com” will also have the recently launched Stripes programme, a paid membership club with priority access for discounted fares and other privileges, as a core product. The hunt is now on for a managing director to drive this new business.

While sharing its results for the quarter ended 30 September 2010, the airline shared that its average ancillary revenues per passenger was $20.6, up from $18.6 for the same period last year.

Chin Sak Hin, CFO of Tiger Airways Holdings, said, “Given more than 20% of the group’s total revenues are now generated from ancillary services, the creation of a new subsidiary will enable the company to ensure that there is dedicated senior management focus on increasing an important source of profitability. We are now focused on improving from our current position of fifth globally to become one of the top three airlines in the world for the amount of revenue generated from ancillary services.”

The airline has chosen to take this initiative at a stage when it is doubling the size of its fleet over the next two years. Having grown the airline to 21 aircraft over the last six years, the group will grow to 43 aircraft by March 2013.

Earlier this month, the airline shared that its net profit after tax for the half year ended 30 September 2010 was $16.0 million, a $24.3 million improvement over the $8.3 million loss recorded in the first half of the prior financial year.

From November 2009 to October 2010, a total of 5.6 million passengers chose to fly with Tiger Airways, an increase of 39 percent over the preceding 12 months.

The airline currently operates flights to 38 destinations in 12 countries and territories across Asia and Australia.

 
 
 

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