After a very slow start, south-east Asia’s fast-expanding budget
airlines are starting to gain traction in China, particularly in
southern cities. The latest to announce a new economy route opening is
Singapore-based Tiger Airways, which will begin flying to Xiamen in
October – with fares starting from USD49.99 for a one-way trip.
The Xiamen service will add to Tiger Airways' destinations in southern
China as the carrier focuses its expansion plans on the area, said Tony
Davis, Chief Executive of Tiger Airways Group. Xiamen is the fifth city
in China with Tiger Airways flights, after Shenzhen, Haikou, Macau and
Guangzhou.
Davis said the carrier was enjoying “strong growth momentum,” with
passenger expansion of 46.3 per cent year-on-year in the first quarter
of 2007, and gross revenues up 84 per cent. “We are maintaining a very
strong growth momentum... so we are very, very, very happy with our
financial performance at the moment,” said Mr Davis. “[But] I am not
going to tell you if we are profitable or not,” he added.
Tiger Airways, which is 49 per cent owned by national carrier Singapore
Airlines, has been expanding its network in the Asia-Pacific region in
recent months.
It will launch flights to India next month, with services to Chennai
and Kochi. It has also targeted entry into Australia, and has set up a
national base in Melbourne.