Tigerair expects new routes, more planes to lift sales 50% in 2014

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TIGERAIR Philippines expects revenues to increase by half in the next fiscal year to P7.5 billion due to robust demand, according to reports quoting chief executive Olive Ramos.

The low-cost carrier is on track to hit its P5-billion revenue target for its fiscal year ending on March 31 next year, Ramos said. “We expect around 50% growth in revenues especially when new aircraft come in,” she said, adding that an improving revenue base would help future earnings.

Tigerair Philippines, the local unit of Singapore-based budget airline operator Tiger Airways Holdings, operates five aircraft comprising medium-range Airbus A320s and A319s.

Ramos said the carrier plans to lease as many as three A320s by next year as part of a plan to expand its fleet to 25 planes so it could cover new international routes including Japan, for which it hopes to gain 8,000 seat entitlements.

She said the airline would be joining the Philippine government air panel in air talks with Japan on Sept. 11-13.

She said the airline is looking to launch daily flights to Tokyo, Fukuoka, Okinawa and Osaka.

The carrier is also setting its sights on South Korea, but flights to that country would only be possible once the US Federal Aviation Administration restores the Philippines’ Category 1 status. The FAA downgraded the country to Category 2 on security issues in 2008.

The Civil Aviation Authority of the Philippines said an upgrade was likely this year, possibly as early as October.

Tigerair Philippines launched flights from Kalibo to Singapore and Manila to Phuket, Thailand recently. It now flies to from Clark to Hong Kong, Bangkok and Singapore.

The carrier is set to launch flights from Kalibo to Shenzhen in November to tap into the huge Chinese market.

Photo from www.tigerair.com