What is the cost strategy adopted by Tiger Airways In Singapore.?

Question

What is the cost strategy adopted by Tiger Airways In Singapore.

Can Anyone pls tell me wat is cost strategy : is it just only product differentiation & cost advtange only

Thanks.

appreciate for all your great help

Answer 1

Its cost strategy is keep it as low as possible by cutting out all frills. No designer uniforms for its stewardesses, no multi-course meals, only simple meals, no free-flow liquor, etc. Cost is kept to a minimum in order to enable charging the low fares they do to remain competitive. Let's hope that cutting costs does not include slacking on airplane maintenance, cos in the long run, it's going to be more expensive for them. SIA can charge the type of fares they charge cos they provide a different product and people are willing to pay for it. You get what you pay for. Put another way, pay peanuts, get peanuts.

Answer 2

There are a number of criteria an airline must fall into to be considered a true low costs airlines. Just selling below others is only one of them. The library have books on this fascinating subject.