Singapore’s budget carrier to pull out of Colombo
View(s):Tiger Airways, the Singapore based budget carrier, is set to pull out of Colombo next month citing low yields just a year operating to the Sri Lankan capital, an airline official said.
The carrier would not accept bookings out of Colombo after August as the airline’s management has stated they would be temporarily suspending operations, an official told the Business Times.
Apart from intimating to the carrier’s Colombo office that suspension of operations would be due to the non-profitability on the route, no other valid reason had been given, it was noted. Tiger Airways commenced flying to Colombo with three flights per week on May 31 last year and increased to four in September due to more demand, it was stated.
The airline’s Colombo flights were operating to destinations Singapore, Malaysia, Thailand, Philippines, China, Cambodia, Vietnam and Australia on its A320 aircraft with a capacity of 180.
ing a load factor of 85 per cent the carrier’s Singapore office was concerned about the profitability of operating on the route, officials said. They noted that since starting at Rs.17, 000 return air ticket could not be increased further and that in contrast countries like India in the same region proved to generate larger volumes and more profits as they operated from a number of destinations within the subcontinent.
Officials also said that however, they continued to have a good demand from customers.
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