Singapore-based budget airlines Tiger Airways on Thursday reported gross revenue for 2008 was up 25 percent on the year earlier, despite the global economic downturn. The number of passengers rose 42.4 percent to 3.2 million people as the airline soared above the economic turbulence that has affected competitors, Tiger Aviation Group chief executive Tony Davis said.
"Tiger Airways is delighted to be bucking the industry trend being repeated by legacy airlines around the world of doom and gloom," Davis said. "This environment of lower oil prices, slightly weaker US dollar and an economic climate which is forcing people to address their expenditure... means that it is a particularly good time for us to grow our business."
For the financial fourth quarter ended March 31, Tiger Airways carried 7.6 percent more passengers compared with the same period the year before. Tiger Airways, which is not listed on the stock market, does not disclose its earnings. Davis told reporters there was "no pressing need" for a public listing as "we don't have any underlying debt, operating debt at the moment."
The carrier, 49-percent owned by Singapore Airlines, said capacity expanded 11.4 percent year-on-year in the fourth quarter with the delivery of two Airbus A319s and one A320, raising the carrier's total fleet to 16. The global downturn has hit the pockets of premium carriers like Singapore Airlines (SIA), Japan Airlines, Hong Kong's Cathay Pacific and Australia's Qantas.
SIA said last week its fourth quarter to March net profit dived 92 percent on year to 41.9 million Singapore dollars (28.5 million US) as the global slump hammered passenger and cargo demand. But Davis said business was good for budget carriers. "Our analysis suggests that consumer demand for low fare air services... remains strong and when combined with the recent significant drop in oil prices presents opportunities for continued strong growth in capacity," he said.
Tiger Airways is further expanding services in Asia and Australia and is looking to accelerate aircraft deliveries over the next three years. It has a total 56 new aircraft, all A320s, on order for delivery through to 2016. Tiger Airways currently operates from hubs in Singapore and the Australian cities of Melbourne and Adelaide. It services 32 destinations across nine countries in Asia and Australia.
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