AVIATION | Tony Chua, Singapore

Tiger Airways still top generator of ancillary revenues in Asia

The carrier’s ancillary revenue as a percentage of total revenue increased to 20.5% from 19.4% in 2009.

For the second year running, Tiger Airways has emerged as the leading airline in Asia and Australia and the world’s fifth leading airline for ancillary revenues, according to a worldwide study.

The study, which was released by IdeaWorks, a consultancy focused on airline ancillary revenues and Amadeus, a global technology provider for the travel industry, researched financial filings made by 104 airlines all over the world, as mentioned in a Tiger Airways report.

Among the top 10 carriers, Tiger Airways was the most successful airline in the Asia-Pacific. Only two other low-cost Asian airlines appeared on the chart in 7th and 8th place; but were overshadowed by Tiger Airways, who outstripped them by a margin of 2 percentage points.

Tony Davis, President and Group CEO of Tiger Airways Holdings, said, “We are delighted to once again be the most successful airline for ancillary revenues in Asia and Australia. We proved last year that smaller and newer players could win on the world stage by giving customers what they want, and this year we are proud to again cement our place amongst the world’s best.

“Tiger’s low-fare model allows us to truly customise our offerings, and this allows our passengers to only pay for the services which they value.”

Last year, for the first time, Tiger Airways achieved record numbers to break into the circle that was previously dominated by larger and older Western carriers, by achieving fifth position in the global study with 19.4 per cent of its total revenue generated by ancillary services. In 2010, Tiger augmented its position by increasing its ancillary revenue as a percentage of total revenue to 20.5 per cent.

“Ancillary revenues contribute to approximately 20 per cent of our total revenue stream, so the services we offer our passengers are essential to our success. Our new products such as Stripes, boardmefirst, switchmyflight and web check-in have been well received by our customers, contributing to our ancillary revenue growth of 8.8% to SGD 21.0 per passenger last year. We will continue to innovate to develop value-added services that benefit our clients,” Davis added.

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