Tiger feeling the force of tsunami

TIGER Airways, the low-cost Asian carrier backed by Ryanair founder Tony Ryan, said today its route to Phuket had been hammered by the tsunami, but vowed to continue serving the Thai island.

Tony Davis, the bmibaby veteran recently appointed Singaporebased Tiger's chief executive, said its daily service to Phuket was now operating just one-quarter full.

Davis said Tiger, 16% held by Ryan's private investment fund, was set to slash fares to help revive the route.

Tiger also serves the Thai capital Bangkok and Hat Yai, a city in the south of the country.

Its founding shareholders would within weeks decide whether to pursue further, rapid expansion that could delay a hopedfor breakeven within its first year of operations, or retain its current fourplane fleet, he added.

Tiger launched flights last September.

Its other major backers include Singapore Airlines, which holds 49% of the company, and Temasek Holdings, the Singapore government's main investment fund, which has 11%.

'Post the tsunami, and with the fuel price rise, we've had a few knockbacks,' Davis admitted in a briefing on the company's strategy.