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Australian Regional Tourism Operators Fear Impact of Tiger Airways Grounding

Strategic Insights

— 1 min read

Australian regional tourism operators are bracing for the worst after the grounding of Tiger Airways, with the peak national tourism body warning that a prolonged outage could have devastating effects on the industry. The Civil Aviation Safety Authority (CASA) has indicated that it may take Tiger to the Federal Court to extend the grounding, which has already affected 35,000 passengers. If the grounding continues, regional operators fear that they will lose a critical segment of the tourism market, which includes families on a budget and people who have saved for a long time for a holiday.

Key Takeaways:

  • The grounding of Tiger Airways could have a significant impact on Australian regional tourism operators, with the Tourism and Transport Forum CEO John Lee warning that a prolonged outage would "start to have a different type of impact."
  • The affected segment of the tourism market includes families on a budget and people who have saved for a long time for a holiday, which are crucial for regional leisure destinations.
  • Regional tourism destinations like the Whitsundays and Cairns are experiencing their worst year in 20 years, with more Australians holidaying overseas due to the strong Australian dollar and external factors affecting inbound tourism.
  • Tiger Airways' entry into the Australian market in November 2007 contributed to a fall in airfares, which could rise by 15 per cent if the airline leaves the market.
  • AMP Capital Investors' head of investment strategy Dr Shane Oliver warns that airfares will increase if Tiger Airways leaves the Australian market.
  • The tourism industry views more airlines as better for the industry, increasing capacity and making it more viable for other tourism operators.

Statistics:

  • 35,000 passengers affected by the grounding of Tiger Airways.
  • 19 routes across Australia serviced by Tiger Airways' fleet of 10 Airbus A320 aircraft.
  • 20 years: the worst period for regional tourism destinations like the Whitsundays and Cairns.
  • 15%: the potential rise in airfares if Tiger Airways leaves the Australian market.
  • 2: the number of weeks Tiger Airways has been grounded, with CASA considering taking the airline to the Federal Court to extend the grounding.

Sources:

  • Asia Pulse: "Tiger Airways grounding may hit tourism"
  • Australian Associated Press (AAP): "Regional tourism operators fear impact of Tiger Airways grounding"

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