Tiger Airways to up revenue contributed by ancillary services
Tiger Airways kicked off cargo trials in January this year on five routes from its Singapore base.
Its latest earnings showed that revenue from such services more than doubled on-year.
Tiger now plans to expand its cargo services, and is also looking into other new opportunities.
The Singapore-based low cost carrier Tiger Airways is seeing some success in its efforts to grow its ancillary services.
This is just one way in which the carrier has been seeking to grow its ancillary services to make more money, and it plans to extend trials to other countries by the end of the month.
“We’ve looked at cargo recently, we’ve started services on cargo to Malaysia and Thailand,” said Tony Davis, chief executive officer of Tiger Aviation.
“We’re rolling that out now, we’ve announced today that we’re going to expand the cargo operation to include Vietnam and to include China. As you know we just started services earlier this month to Hong Kong.”
For the first nine months of its fiscal year, Tiger said that revenue from ancillary services amounted to about SG$66 million, almost double from the same period the previous year.
Ancillary revenue now account for some 20% of total revenue, and Tiger wants to raise that to 25%.
Meanwhile, the carrier is also exploring opportunities created by the integrated resorts in Singapore.
“We’ve done a deal with Resorts World Sentosa where we will be operating an aircraft for them to bring more tourists and visitors into Singapore,” said Davis.
Resorts World Sentosa will take over the lease of the aircraft, with Tiger providing crew. The service is expected to start later this year.
Tiger did not say if it was also in talks for a similar deal with the upcoming Marina Bay Sands integrated resort, but said it is open to all such partnerships and tie-ups.
Amid an improving economic outlook, Tiger said it is not worried about business travellers returning to full service carriers.