The Entry of Tiger Airways into the Australian Aviation Market
Increased traveling of international tourist arrivals. With Tiger’s stakeholder affiliations with Singapore Air Lines, there are a good potential for international tourists from Singapore, China, etc destinations to Australia to increase which will again boost domestic air travel as well.Possibilities of Quantas., the national carrier being taken over by outside parties such as Air Line Partners Australia (APA) which had offered a take over bid which will erode the brand loyalty of local travelers if their national carrier is to be owned by foreigners (Bartholomeusz 2007).Quantas Group restrictions on Jetstar which limits Jetstar from flying in major routes in which Quantas is flying reduce the number of competitors of certain routes which is an opportunity for Tiger ( Knibb, 2007)Legislature and industry imposed targets on emission control levels will mean the aircraft carriers will need to be upgraded at high costs, practice new measures that are deemed environmentally friendly, and pursue the targeted emission controls (Aviation industry backs emissions plan 2006).Saturated market conditions due to the aging population, developments in telecommunication substituting business travel are acting as dampeners of air travel worldwide. “The Centre for Asia Pacific Aviation estimates the number of airlines worldwide will decline from 300 to 200” (Strategic Plan 2002 – 2006 – Aviation”, 2006).Rising fuel costs and fluctuating currency situations with the escalation of political and terrorist turmoil in the Middle East will be a threat. In addition, the “depreciating world currencies and rising third party insurance costs” will add to the cost burden which can threaten low-cost carriers such as Tiger (Strategic Plan 2002 – 2006 – Aviation”, 2006).Threats of terrorism and incidents such as Bali bombing have affected the tourism industry in Australia.