Tiger Airways

Topics: Low-cost carrier, Airline, Social media Pages: 3 (1149 words) Published: January 24, 2013
Tiger airways have a few critical issues which could be solved. Tiger airways did not seem to have a very good relationship with their consumers. For one, despite the attempts to connect with the consumers through social media sites like Facebook and Twitter, consumers were regularly complaining about the company on these sites. Instead of clarifying matters and executing a good customer relations strategy, Tiger deleted negative comments off their official Facebook page and remained silent for 72 hours after the grounding took place. Tiger also allowed an Australian television channel to air a program documenting all the negative and dismal areas of Tiger’s operations. All these actions only served to reduce consumer confidence and trust. With consumers being the driving force behind Tiger’s profitability, the company should focus on building goodwill and trust, and in light of the grounding, to also reassure them of their values of low cost and safety. The solution is to offer complimentary flights to affected consumers and make use of this opportunity to build good relations with them. Tiger can also turn this into an opportunity for positive media coverage showing the company’s sincerity in righting the wrongs. Encourage two-way communication between tiger and its stakeholders. Start being more proactive in communicating with consumers and anticipate their grievance. Come up with a contingent communication strategy and how to deal with consumers to build goodwill and trust. Or they can improve the consumer hotline and reassure customers about their safety by hiring a third party to vouch for them (ingratiation strategy). Tiger airway is also facing issues with the investors. As soon as the grounding took place, Tiger’s SGX stock price plunged, showing a lack of confidence on the part of investors. Interesting to note was that share prices continued to plummet even after tiger resumed its flights. This would not probably be because airline capacity was...
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