Just five months after Qantas suspended its Perth-Singapore service, low cost carrier Tigerair yesterday announced it too will be dropping its service in February 2015.
A Tigerair Singapore spokesperson said “The suspension of the Perth route is part of Tigerair’s network review process and is in line with our route rationalisation strategy. In order for Tigerair to continue providing low fares to our customers, we review our network regularly and make careful adjustments where necessary, to ensure that we’re operating efficiently as an airline”.
The last flight to depart Perth for Singapore will be TR2717 on February 7 2015.
Tigerair also announced that it will be dropping flights to Bandung, Indonesia, at the end of October and ending its Singapore-Phnom Penh route on November 11.
Until May this year, the Perth – Singapore route was served by 5 carriers being Singapore Airlines, Qantas, Jetstar, Tigerair and Scoot. Along with intense competition between these carriers, the increase in seat capacity and arrival of Middle Eastern carriers, Emirates, Qatar and now Etihad meant that overall passenger numbers to Singapore had declined.
When Qantas CEO Alan Joyce announced that the airline would cease perth- Singapore services he cited increased competition owing to "a giant wave of airline capacity that has reshaped Australian aviation", partnered with "ongoing record fuel prices", as key challenges confronting Qantas.
"I recognise that Perth has been affected by the withdrawal of some Qantas International routes – routes that were unprofitable," Joyce said, explaining that "we have had to rationalise our international network in some areas."
Tigerair Singapore’s progressive withdrawal from Bandung, Phenom Penh and Perth also comes as the airline group prepares to sub-lease 12 surplus aircraft to India’s Indigo Airlines.
The majority of the 12 aircraft were previously operated by Tigerair Philippines and Indonesia’s Tigerair Mandala, Tigerair said on Friday.
“The sublease agreement resolves our excess capacity issue and puts us in a better position to focus on our Singapore operations,” Tigerair group chief executive Lee Lik Hsin said in a statement.
“We will actively explore options for the placement of the surplus aircraft subsequent to their return from IndiGo.”
Deliveries of the 12 aircraft to the Indian budget carrier were due to take place over a six-month period beginning in October, with the sub-lease lasting between three and four years.
Tigerair Philippines was sold to Cebu Pacific Air in March 2014, while Tigerair Mandala was shut down in July 2014.
Airlines across South-East Asia have been dealing with excess capacity in the market in recent times, leading to losses from a number of low-cost carrier groups.
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