Tiger’s aggregate costs per seat/kilometre at the bottom of the operating statistics for the quarter (below) are well below those of its Australian rivals for their various operations, but so are Tiger’s revenue figures, although non-flying revenue figures in the full accounts are strong, at more than 20% of gross fare sales, which is where profitable low cost carrier business models get their cream on top.The value of ’sales in advance of carriage’ were $67.9 million at balance date, a sharp reminder that Tiger is reliant on using forward sales to pay current bills, and that continued expansion is a prerequisite for generating such a crucial revenue stream .
Currently Tiger is offering seats on selected routes and days for nothing other than the charges it has to pay to use the airports and sky. Full Story
