Tiger roams the Australian jungle from today

Tiger Airways’ Australian launch today is not so much about low fares, but the beginning of a brand war that will envelop Asia Pacific aviation in the next few years. Neutral brands, that can penetrate cross-borders, are at the cutting edge of aviation development in the region, and will steadily diminish the presence of the national identity brands, or “flag carriers”. Both will continue to have a future role to play, and profitably. But the high growth rates of the next decade will come from the new entrants and several strong brands. Jetstar, for example, has leapt into the Top 5 international outbound carriers from Australia, leapfrogging Thai Airways and Malaysia Airlines. It is aiming to have a similar impact at other Asian bases in the not-too-distant future, as is Tiger Airways, following in the footsteps of AirAsia’s trailblazing, brand building cross-border JVs. What we are seeing is nothing short of a revolution in the airline business in this region. The Asian travel market, while growing in size, is much the same as it ever was in essentials – but airline business models have changed, as airlines, led by the likes of the Qantas Group, have become more sophisticated in serving that market with separate flying brands. This will ensure the survival of more airlines in the market, as carriers compete for more clearly defined segments side-by-side, with much more appropriate and sustainable cost bases - even with oil at USD100 per barrel. "In Australia, where domestic access is liberally offered, the days of the age-old Australian airline duopoly structure are probably gone forever. Tiger is a sustainable and well funded, well managed model," said Peter Harbison, Executive Chairman of the Centre for Asia Pacific Aviation. Note to editors: About Centre for Asia Pacific Aviation The Centre for Asia Pacific Aviation (CAPA) was founded in 1990 and has since built an international reputation as the leading specialist aviation consultancy in the Asia Pacific, the Indian Subcontinent and Middle East regions. CAPA Consulting’s strategic advisory services are supported by the extensive information and data services provided by the Centre’s Market Research Unit to aviation industry leaders every day. The Centre also holds regular Aviation Leadership Summits, which provide unique opportunities for the exchange of ideas and experiences. Head Office, Sydney: Derek Sadubin, Chief Operating Officer Aurora Place, Level 4, 88 Phillip St Sydney PO Box N777, Grosvenor Place Sydney, NSW Australia 2000 Email: [email protected] Southeast Asia Regional Office: Richard Pinkham, Regional Director, Southeast Asia Email: [email protected] Indian Subcontinent and Middle East Office: Kapil Kaul, CEO Indian Subcontinent & Middle East Email: [email protected] UK/Europe Office: David Bentley, UK Associate Email: [email protected] North America Regional Office: Martti Raito, Regional Director, North America Email: [email protected] North Asia Representatives: Korea: Kyung-sup Lee. Email: [email protected] Japan: Reiko Sonoyama. Email: [email protected] More information is available on the Centre’s website: www.centreforaviation.com

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