Abstract
Case study: On Saturday 2 July 2011, the Civil Aviation Safety Authority (CASA) suspended the operations of Tiger Airways Australia Pty Ltd due to concerns about the airline's safety protocols. Tiger Airways Australia is part of Tigerair, established in 2004 as a low-priced airline targeting budget travellers across the Asia-Pacific region. The airline operates from four bases in Singapore, Australia, Indonesia and the Philippines and currently flies to over 50 destinations in 13 countries in the Asia-Pacific region. Tiger Airways’ key value proposition on the market is centred around offering travellers affordable, memorable and safe air travel in a market that is dominated by big players such as Virgin and Qantas. However, the airline’s proposition was severely tested by its suspension by CASA in 2011, This resulted in Tiger Airways suspending flights until it had satisfied CASA’s safety requirements. Inevitably the suspension had a negative impact on the airline’s already depressed financial and operational performance, resulting in a loss in 2011. More importantly, air travel is an experience- and perception-driven service; therefore, Tiger’s main challenge in its recovery was inevitably going to be in establishing confidence and a positive image of the brand among air travellers who already have other options for low-cost travel. Whether Tiger Airways managed to recover from this crisis remains a key question, which the marketing team at the airline continues to grapple with in shaping the brand’s future in a cutthroat competitive sector.
| Original language | English |
|---|---|
| Title of host publication | Marketing |
| Editors | Dhruv Grewal, Michael Levy, Shane Mathews, Paul Harrigan, Tania Bucic |
| Place of Publication | North Ryde, N.S.W. |
| Publisher | McGraw Hill Education |
| Pages | 331-336 |
| Number of pages | 6 |
| ISBN (Print) | 9781743077023 |
| Publication status | Published - 2015 |
Keywords
- Tiger Airways Australia
- airlines
- safety
- marketing