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Low Cost Airline News - Asia / Pacific.

Airguide Online • March 17, 2008 •

Mar 17, 2008

Spring Airlines

Shanghai-based Spring Airlines posted a record net profit of CNY70 million ($9.8 million) in 2007, more than double the previous year's result. Operating revenue rose to CNY1.23 billion, but industry analysts credited effective cost control for the profit result. According to CAAC statistics, Spring's operating expenses were 18% lower than the domestic average. The carrier is one of the few profitable Chinese LCCs and operates a single fleet type (A320) with an all-economy cabin configuration. In order to reduce costs, it developed independent sales and departure systems that boosted e-commerce revenue to CNY850 million (69% of its 2007 operating revenue) and saved around CNY40 million in commissions to ticket agents. Passenger boardings numbered 2.4 million last year and load factor was 95%. Mar 13, 2008

Spring Airlines

Spring Airlines operates eight Airbus A320s to more than 20 domestic destinations. A spokesperson said the fleet will increase by 3-4 units this year. It originally had planned to add 10 aircraft in 2008 and boost the fleet to 30 in 2009, but "due to a severe pilot shortage, we have to decrease our fleet expansion. In addition, CAAC wants us to slow down for this summer's Olympic Games and the potential safety issues associated with saturated skies," the spokesperson explained. Mar 13, 2008

Tiger Airways

Tiger Airways will increase services to regional Australia to take on Virgin Blue's new E-jets and QantasLink's Q400s and 717s. Speaking last week at the National Aviation Press Club in Sydney, Tiger CEO Tony Davis told media that "destinations like Tamworth [in regional New South Wales] have seen the cost of airfares increase and their citizens are desperate for the low-cost revolution to arrive." He said the cheapest flight from Tamworth to Melbourne [Tiger's base] is on Qantas at A$356 ($332) and involves a Sydney stop. Mar 10, 2008

Tiger Airways

Tiger Airways will invite Australians to vote online for their preferred regional destination as it attempts to gauge demand. Davis expects to announce a second Australian base within three months and told media that the airline plans five operating bases in the country over the next seven years. For the New Zealand market it is eyeing Palmerston North. Mar 10, 2008

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