With the haze having smothered Singapore with an unpleasant, grey blanket over the past few weeks, many of us dreamed of jumping on a plane and escaping to blue skies and fresh air. And with the plethora of budget airlines available offering flights at reasonable prices, this dream became a reality for the fortunate few.
Tiger Airways Singapore known as Tigerair (SGX: J7X) is one such airline. Founded in 2004, as an independent carrier, Tigerair was one of the first no-frills airlines to hit our shores.
Following in the footsteps of European airlines such as Ryanair and EasyJet, Tiger Airways, like its Malaysian rival Air Asia (MYX:5099) was launched to offer travellers in South East Asia the chance to fly for lower prices as compared to the larger, more traditional airlines.
Charging for extras such as food, extra baggage and seat allocation made up for the lost ticket revenue and the airline served cities within a five-hour flying time of Singapore, picking airports with cheaper landing fees and terminals.
Customers were suddenly able to choose whether or not they wanted those extras – and those that didn’t often found themselves flying for rock-bottom prices.
Of course, bargain prices come at a cost and soon customers complained about the pricey checked-in luggage fees, exorbitant charges for families to sit together as well as poor service once on board. But with dirt-cheap prices on offer, many of us decided to grit our teeth and go back for more.
The company was listed on the Singapore Stock Exchange in 2010, with Singapore Airlines as its largest shareholder and changed its name to Tigerair in 2013.
But did you know…
- Tiger Airways was one of the first budget airlines granted operating permits to fly to the Chinese cities of Haikou, Guangzhou and Shenzhen.
- Tiger’s founding shareholders were Singapore Airlines (SGX: C6L) (49%), Indigo Partners LLC (24%), Tony Ryan’s Irelandia Investments (16%) and Temasek Holdings (11%).
- Tigerair was awarded “Best On-Time Performance by an Airline” at the Bengaluru International Airport Limited’s (BIAL) Pinnacle Awards 2015.
- It was also named one of Changi Airport’s “Top 5 Airlines 2015” in terms of passenger carriage and one of its “Top 5 Passenger Carriers” in 2013.
- The Tigerair motif features a tiger’s tail/smile (the ‘y’) while the two differently coloured dots are supposed to depict a friendly ‘wink’.
Whether we love them or loathe them, budget airlines seem to be here to stay. Today, Tiger Airways Holdings Ltd remains based at Changi Airport and operates a fleet of 30 Airbus A320 aircraft, flying to 39 destinations across 12 countries in Asia.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.