In the midst of its month-long shutdown earlier this year, Tiger Airways emailed customers claiming that prices from its rivals had gone up by more than 30 per cent once it stopped flying. That seemed like an odd claim to us, and now Tiger has been forced to withdraw it after the ACCC determined it had no clear factual basis.
The ACCC has told Tiger to issue a retraction after determining that there was not sufficient evidence to back that claim (Tiger said it had sourced that information to a Goldman Sachs report). Making misleading representations can represent a breach of the Competition and Consumer Act 2010.
When we’ve looked previously at the impact of Tiger on overall pricing, we’ve noted that it’s very hard to draw any definite conclusions based on actual evidence about its effect on pricing, and that cheap flights can be found on most carriers if you plan properly. Quite aside from that, the fact that Tiger made a claim that it couldn’t substantiate to seemingly try and shore up its battered reputation won’t do much for potential customers not sure how trustworthy the carrier is.