LOW-COST AIRLINES WILL SOAR, SAYS AUSSIE TIGER AIRWAYS CHIEF

MELBOURNE, March 4 (Bernama) -- Low-cost airlines will take the market share
from larger carriers as travellers get tempted by bargain fares, Tiger Airways
Australia managing director Shelley Roberts says.

She said cheap travel would stimulate the travel market during the economic
downturn, encourage competition and make domestic travel accessible to
everyone, the Australian Associated Press reports.

"Low fares stimulate demand, with a low-cost base we are able to offer low
fares," Roberts said in her address to the American Chamber of Commerce Tuesday.

"Particularly in these economic times, it's really important to focus on the
cost rather than chase revenue.

"You sell the seat for the lowest possible price and you let the consumer
add on whatever they want," she said.

Roberts likened Singapore-based budget carrier Tiger Airways to European
low-cost carrier Ryanair and former employer easyJet which had overtaken
British Airways in passenger numbers in the past few years.

In five years, it would be the same "David and Goliath" story in
Australia with Tiger Airways, she said.

"Our model is about keeping it uncomplicated," Roberts said.

She said budget airlines offered travellers flights for as low as A$2
US$1.30) and people would ask "why not" travel to a particular destination on
offer.

"Tiger Airways has already saved Australians A$60 million (US$38 million) in
travel costs," she said.

"We will keep true to that low cost as we grow," she said.

Tiger Airways, which entered the Australian domestic market in November
2007, has bases in Melbourne and Adelaide.

Roberts said the company planned to expand in Australia.

"We have 60 aircraft on order and I plan to have 30 in Australia," Roberts
said. Singapore Airlines has a 49 per cent stake in the company.

-- BERNAMA