Tiger Airways bares its claws at AirAsia Group CEO...

[flee 5]

From the Bangkok Post:

 

Focus on core strengths, THAI told

Thai Airways International should focus on its core strength - the premium airline business - rather than getting involved in low-cost carrier (LCC) ventures, says the founder of Asia's biggest budget carrier.

 

Tony Fernandes, chief executive of AirAsia Group, questioned the need for the Thai flag carrier's contentious plan to create Thai Tiger Airways (TTA), in addition to the budget operator Nok Air, in which THAI has a 39% share.

 

"My question is, is it necessary? Is it being done for the right reasons?" Mr Fernandes asked rhetorically, referring to the proposed partnership with Singapore-based Tiger Airways.

 

THAI is very strong in its own core premium airline business, where it still has significant growth opportunities to capture, and it doesn't need another low-cost airline, Mr Fernandes said in an interview with the Bangkok Post.

 

Mr Fernandes is the latest of many industry figures who have questioned THAI's strategy. The Thai Transport Ministry also opposes the move to form a 51:49 joint venture with Singaporeans, ostensibly to fend off other fast-growing budget airlines, AirAsia in particular.

 

Mr Fernandes said other successful airlines including Cathay Pacific had not felt compelled to start LCC ventures but were concentrating on their mainstream full-service operations.

 

Although Singapore Airlines holds a stake in Tiger Airways, it is not involved in its operation and probably doesn't care too much since it makes big profits in the premium market, he said.

 

By way of analogy he asked: "Why doesn't Mercedes-Benz have a Tata Nano?

 

"Why has AirAsia not done a full-service airline? Because we know that is a business where we would fail. We're focused on what we are doing best and are passionate about, the LCC."

 

"As a businessman, I always believe in focus and discipline in my core business," said the man who started out eight years ago with two aircraft and 200 staff and now runs a global brand connecting 22 countries and 139 routes operated by 96 planes.

 

Mr Fernandes also described Tiger as an "odd" choice for a business ally, noting that it was not making much money. As well, it faces a pilot shortage that on Tuesday forced it to cancel 35% of its flights, "They have not yet been able to solve their problems, so what are they going to teach the THAI?"

 

Mr Fernandes is also sceptical about having westerners running any successful Asia-based business, referring to some Tiger Airways management.

 

"We're Asians, not a bunch of white guys running the airline," he said, explaining that Thai AirAsia was run by Thai management who know the local and Asian markets.

 

"This is Asia, Asian brand, Asian culture," added Kathleen Tan, regional head for commercial affairs of AirAsia.

 

"Thailand is not easy because it has its own culture and the market is highly competitive," she added.

 

Both THAI chairman Ampon Kittiampon and president Piyasvasti Amranand have repeatedly expressed determination to get TTA off the ground by March despite lingering disagreements.

 

The new budget carrier tentatively plans to start with eight routes: one from Phuket to Chiang Mai, and seven out of Suvarnabhumi Airport to Phuket, Chiang Mai, Kuala Lumpur, Penang, Macau, Chennai and Shenzhen.

 

A formal joint venture agreement to form TTA has yet to be signed, nor has TTA has applied for an operating licence from the Department of Civil Aviation.

 

Source: http://www.bangkokpost.com/business/aviation/201467/focus-on-core-strengths-thai-told

 

And here is Tiger's response:

 

Tiger Airways yesterday hit back at AirAsia, the region's largest low-cost airline, for what it called "racial slurs" about the Singapore-based budget carrier.

 

Saying it was "disappointed and surprised" by the comments by AirAsia chief Tony Fernandes, Tiger Airways stated that "resorting to racial slurs is unbecoming and unnecessary."

 

Mr Fernandes made a comment about "white guys" running an Asian airline in an interview with the Bangkok Post. He was expressing scepticism about having Westerners running any successful Asia-based business, referring to some Tiger management.

 

"Tiger Airways is proud of our employees' contributions regardless of their race or cultural background." the Singapore airline said.

 

"Positions are determined by merit alone. In any case, we happen to have a great racial and cultural diversity across our board, management and the rest of the organisation."

 

Tiger Airways would continue to compete against all airlines in Asia and Australia, the statement said.

 

It said that "together with Thai Airways, we will create a management team that is well qualified to lead Thai Tiger Airways", a proposed new affiliate to be owned 51% by THAI and 49% by Tiger Airways.

 

Looks like Tony Fernandes is a bit off with his comments. I thought that he "welcomes competition". But now, it looks like he has changed his mind somewhat.

[Naim 6]

"As a businessman, I always believe in focus and discipline in my core business." - TF

 

Really? I think he's all over the place too.

[Mushrif A 3]

"As a businessman, I always believe in focus and discipline in my core business." - TF

 

Really? I think he's all over the place too.

 

I guess it depends on how you define "core"

[BC Tam 2]

If Dato TF has trawled a bit in this very forum here, he will no doubt be aware that some entity closer home has plans afoot to nibble at his piece of the cake already

But then, it's likely Dato's sources of intelligence are probably a few steps ahead of what we are privileged to here

[c.lee 0]

Dato TF is the one who's always claiming that competition is good for consumers, liberate the KUL-SYD vv routes yada yada, and now he is not happy with the set up of Thai Tiger Airways, which will effectively increase the competition in Thailand and ASEAN.

 

Mr Fernandes is also sceptical about having westerners running any successful Asia-based business, referring to some Tiger Airways management.

 

"We're Asians, not a bunch of white guys running the airline," he said, explaining that Thai AirAsia was run by Thai management who know the local and Asian markets.

Mr Fernandes also described Tiger as an "odd" choice for a business ally, noting that it was not making much money. As well, it faces a pilot shortage that on Tuesday forced it to cancel 35% of its flights, "They have not yet been able to solve their problems, so what are they going to teach the THAI?"

He does not have to worry about these, unless he plans to invest his money into Thai Tiger Airways.

[Mohd Suhaimi Fariz 2]

Looks like Tony Fernandes is a bit off with his comments. I thought that he "welcomes competition". But now, it looks like he has changed his mind somewhat.

 

It sounds like he welcomes competition only if it is beneficial to HIM...

[KC Sim 2]

Bet you that if tomorrow somebody decides to establish LCCs in Port Moresby, Biak, Mandalay or in Port Blair, Dato TF would not have an opinion. But try establishing one in Thailand, Malaysia or Indonesia ... then fangs and talons will be out and all those talk of competition being good for the consumer goes flying out of the window.

 

And talk about keeping to one's core business ... I think that does not hold water. Many airlines have in the past dabbled with hotel business and most have withdrawn after realising that it is not considered a core aviation business. So whether Tune Hotels is in step with sticking to an airline's core business or out of tune, only time will tell.

 

The cat fight between the two is interesting to watch ... and it will be fun to see what the final outcome will be. Will the Tiger succeed in pouncing on the opportunity to create a cub in Thailand or will Dato TF be able to decide whether everyone can fly in Thailand.

 

One thing I know for sure, do not believe every (or any) word you hear coming out of either.

 

KC Sim

[Raymund Yeoh 1]

I guess it depends on how you define "core"

 

well I guess CORE to Mr TF is anything tht is beneficial and can generate losta $$$$ without doing much...n making it look like the other party is the bad boy

Edited October 17, 2010 by Raymund Yeoh

[c.lee 0]

n making it look like the other party is the bad boy

Agree.

[Andi C 0]

 

Check out this ad by AK

[Y. J. Foo 0]

That "Guaranteed to fly everyday" is epic

 

TR seems to have been sucker-punched...

 

 

[c.lee 0]

There is another one here.

 

Sucker-punched twice.

[Andi C 0]

Really like to see how TR will respond

Remember a few years back they 'teased' the Singapore Girls with their 'New Girl in Town'?

They are going all out to insult the 'tiger' this time

Love to see more '老虎打架' ('Tiger Fights')

[dean hizudy 0]

during firefly was newly launched back in year 2007, they make and ad which showed a firefly fokker-50 aircraft flying low and been 'attacked' by heavy rain and storm while the air asia aircraft is flying high without any problem

[EddieDaniel 0]

during firefly was newly launched back in year 2007, they make and ad which showed a firefly fokker-50 aircraft flying low and been 'attacked' by heavy rain and storm while the air asia aircraft is flying high without any problem

 

In reality, he is afraid of competition and his mouth is just too big for his head!

[Waiping 12]

This is a below-the-belt punch by AK.

[Kee Hooi Yen 0]

Check out this ad by AK

 

TF may strike another bee hive... how about.... LION Air ?

Edited October 20, 2010 by Kee Hooi Yen

[Naim 6]

In reality, he is afraid of competition and his mouth is just too big for his head!

 

both.

[dean hizudy 0]

but in the other side, air asia is a malaysian company. As a malaysian, dont you guys think that we should support air asia in this case?

[Mohd Suhaimi Fariz 2]

but in the other side, air asia is a malaysian company. As a malaysian, dont you guys think that we should support air asia in this case?

 

Yes, we should, but it's hard to support because in this case he's being hypocritical. He lambasted MH for anti-competitive behaviour yet display the exact same attitude when it comes to Tiger & Thai joining forces.

[Waiping 12]

but in the other side, air asia is a malaysian company. As a malaysian, dont you guys think that we should support air asia in this case?

Nope!

[Raymund Yeoh 1]

but in the other side, air asia is a malaysian company. As a malaysian, dont you guys think that we should support air asia in this case?

 

Well as much as I like to support a Malaysian company, in this case or more like "tiger fight" here...i believe TF has goone overboard by placing this kind of adverts....come one where is the professionalism here ?.....Wouldn't it be better for Tiger to make themselves better and provide a better competition to AK or even Jetstar or any airline for that matter

 

Ultimately we consumers are the ones who are paying for the flights .....n we want the best out of everything...rite

[Mohd Suhaimi Fariz 2]

Well as much as I like to support a Malaysian company, in this case or more like "tiger fight" here...i believe TF has goone overboard by placing this kind of adverts....come one where is the professionalism here ?

 

To be honest although it's not common here in Malaysia ads like these are very, very common in America and Europe. They're taking the move right out of the Ryanair playbook!

[Sri Ramani K. 0]

I seriously don't mind competitions like these. Remember last time, even MH came out with ads like this? Competitions like these are way healthier rather than trying your best to stop your enemy to fly to the destinations you're currently flying.

[BC Tam 2]

but in the other side, air asia is a malaysian company. As a malaysian, dont you guys think that we should support air asia in this case?

Not in this particular case, not when such coarse arrogance has been exhibited

No point in blindly supporting anything Malaysian for sake of being a 'patriotic' Malaysian

Furthermore, that 'if xxxxx is meant to fly ......' cliche is so overly lacking in originality, let alone relevance to issue currently in dispute

 

Looking at it from yet another angle, I'm opinion that TR and TG should be plenty pleased

They must have gotten something right so far to have evoked such strong response from the opposing side