Tiger Airways

SINGAPORE: Tiger Airways has posted a loss after tax of S$118.5 million for the quarter ended 31 December 2013.

In a media statement, the budget carrier said the third quarter loss in its financial year 2013/14 was mainly due to exceptional charges of S$88.3 million, which consist of a S$30.3 million loss on the planned disposal of Tigerair Philippines and an impairment of associates of S$58.0 million in the quarter.

The firm also recorded S$23.1 million as its share of losses from its associates.

At the operating level, total revenue declined by 30.5 per cent to S$172.1 million in the third quarter. This is mainly due to the divestment of its Australian unit which took effect from 8 July 2013, and lower revenue from its Singapore unit.

The group also recorded an operating loss of S$8.8 million in the quarter under review.

Koay Peng Yen, group CEO of Tigerair, said: "Our third quarter operating performance was dragged down by industry overcapacity which had led to weaker yields and lower load factors.

"We recorded exceptional charges on losses from associates. Consequently, the disposal of Tigerair Philippines will put us on a better footing going forward."

The Tiger is still struggling...

(not vested)

Tiger Airways to sell or shut Indonesia affiliate if no sign of turnaround: sources
03 Mar 2014 14:01
[SINGAPORE] Singapore's Tiger Airways Ltd aims to sell or close its Indonesian joint venture unless there are signs of it turning around this year, people familiar with the matter said.

PT Mandala Airlines resumed flights in 2012 after financial restructuring under which Tiger bought a one-third stake, raised to 35.8 per cent in September. Even so, Tiger lost nearly S$40 million (US$31.6 million) in the venture in April-December.

Tiger and Indonesian private equity firm Saratoga, which owns 51 per cent of the venture, are now unwilling to make further investment, said the people, who were not authorised to speak publicly on the matter and so declined to be identified. "The writing is on the wall," said one company source.
...
Ref: Business Times Breaking News

(03-03-2014, 04:33 PM)CityFarmer Wrote: The Tiger is still struggling...

(not vested)

Tiger Airways to sell or shut Indonesia affiliate if no sign of turnaround: sources
03 Mar 2014 14:01
[SINGAPORE] Singapore's Tiger Airways Ltd aims to sell or close its Indonesian joint venture unless there are signs of it turning around this year, people familiar with the matter said.

PT Mandala Airlines resumed flights in 2012 after financial restructuring under which Tiger bought a one-third stake, raised to 35.8 per cent in September. Even so, Tiger lost nearly S$40 million (US$31.6 million) in the venture in April-December.

Tiger and Indonesian private equity firm Saratoga, which owns 51 per cent of the venture, are now unwilling to make further investment, said the people, who were not authorised to speak publicly on the matter and so declined to be identified. "The writing is on the wall," said one company source.
...
Ref: Business Times Breaking News

Maybe that's why SIA started Scoot as Tiger failed to deliver.

Airliner, especially the LCCs are having tough time. The delivery has been delayed till 2018, rather than this year, a solid 4 years. That tells the overcapacity might stay for another few years.

(not vested)

Tigerair inks new S$4.8b Airbus deal, cancels existing order

SINGAPORE — Tigerair is delaying immediate plans to expand its fleet by cancelling an existing aircraft order for this year and the next, signing a new deal instead for more fuel-efficient models from 2018, as the budget carrier adjusts its business strategy amid concerns of overcapacity in the region.

The move will allow it to “optimally manage its capacity going forward, improve its cost efficiency and advance its fleet modernisation plan”, Tigerair said in a statement yesterday. It will also help the airline save an estimated S$40 million annually on fuel, it added.

The new order for 37 Airbus A320neo aircraft is valued at US$3.8 billion (S$4.8 billion) and scheduled for delivery over eight years from 2018. The new model is expected to gradually replace Tigerair’s current A320ceo fleet in Singapore that will be phased out when the leases expire. Tigerair also has an option to increase the order by up to 13 aircraft.

The existing order that Tigerair cancelled was for nine A320s, which were scheduled for delivery this year and the next.
...
http://www.todayonline.com/business/tige...ting-order

Loss-making Tigerair seeks turnaround by clipping own wings
Published on May 3, 2014 1:30 AM


Tigerair lost $223 million in the year to March 31, compared with $45.4 million in the previous 12 months. Its ventures in the Philippines and Indonesia have also not worked out well. -- ST FILE PHOTO

By Karamjit Kaur Aviation Correspondent

TIGERAIR is grounding eight planes and cutting unprofitable flights in an unprecedented move to turn its loss-making business around.

Battered by bruising competition, which has pushed the carrier into its biggest loss ever, Tiger-air will park the planes - about 15 per cent of its total fleet - until the end of March next year.

The decision to downsize comes about two months after the airline cancelled an order for nine single-aisle planes that were due to arrive this year and next.

There are just too many flights serving the region and not enough demand to fill seats, said group chief executive officer Koay Peng Yen during a media tele-conference following the release of Tigerair's financial results yesterday.

In the year to March 31, the carrier lost $223 million, compared with $45.4 million in the 12 months before that.

Mr Koay said: "We are taking firm steps to manage and right-size our fleet and network, and to address the losses we have seen... We have gone through turbulent times the past year."

With eight planes gone, Tiger-air will be left with 44 jets.

As a result of its cutbacks, passengers will have fewer carriers to choose from on some routes and pay possibly higher fares.

Tigerair will make adjustments to its route network, said Mr Koay.

Flights will be cut to cities like Haikou, Macau and Cebu, while services to stronger markets like Manila, Jakarta and Saigon will be beefed up. It will stop flying to the Indonesian cities of Lombok and Yogjakarta altogether.

Budget carriers, which first muscled their way into Asia a decade ago, have expanded massively in the last few years and this has taken a toll on profits and yields, said aviation analysts.

UOB Kay Hian's K. Ajith said: "Clearly, there is excess capacity in South-east Asia. Everybody from AirAsia to Tiger to Jetstar is adjusting capacity. You can only stimulate demand to a certain extent."

In the last financial year, for example, Tigerair Singapore grew its total capacity - a measure of the total number of seats multiplied by distance flown - by 27 per cent but managed to grow demand by just 13 per cent.

"The industry will continue to grow but not at the rates that were seen the last few years," Mr Ajith said.

A downside for Tigerair and other Singapore-based carriers is the lack of a large domestic market, he said.

Attempts by Tigerair to move into other markets through ventures in the Philippines and Indonesia have not worked out well, mainly due to bigger and stronger rivals.

Having sold its 40 per cent stake in Tigerair Philippines, the carrier is now reassessing its one-third ownership of Indonesia's Tigerair Mandala.

Mr Koay said all options, including a possible sale of the stake, which was previously reported, are being considered.

Tough times for carriers have had an impact on airports, including Changi. There were 4.49 million passengers at the Singapore airport in March - a 2.5 per cent drop from March last year. It was the second year-on-year dip in monthly traffic since July 2009.

karam@sph.com.sg

Think the common equity is probably 0 already. The remaining book largely can only cover the perpetual capital security. Given the operating outlook of Tiger, it seems that it is only a question of time that common equity holders are going to be wiped out and the perpetual capital security will be converted into equity and more new equity to be raised.

Or Tiger can close down.

Tiger has a strategic purpose for Changi Airport and a face issue for SIA

It is unlikely to be closed down but supported as far as possible, as national airlines done in the past decades. But that is unlikely to be good news for common shareholders

The Tiger story will continue with the new CEO, will he make a miracle?

Battered Tiger Airways replaces CEO with SIA executive

SINGAPORE — Tiger Airways Holdings said it would be replacing its Chief Executive with an executive from its largest shareholder, Singapore Airlines (SIA), days after the budget carrier reported a big widening in its losses.

Mr Lee Lik Hsin, a 20-year veteran of SIA, which owns 40 per cent of Tiger, will become chief executive from May 12, replacing Mr Koay Peng Yen who joined Tiger less than two years ago, Tiger said in a statement today (May 7).

“Tigerair Singapore, which had been growing at the rate of 30 per cent in the past 3 years, hit turbulence when the market sagged in mid-2013 through the imbalance of capacity and demand,” Tiger said.

“Nonetheless by the time of Mr Koay’s departure, Tigerair Singapore had started the process of consolidating its services in preparation for a decisive turnaround in its prospects.”

Tiger’s shares have declined nearly 40 per cent over the past year and are trading near a record low.

It reported a net loss of S$95.5 million in the quarter ending March, up from a loss of S$15.4 million a year ago for the same period. REUTERS
http://www.todayonline.com/business/batt...-executive

Merge Tiger into Scoot.

Become Scootiger

why not merge profits of sia with tiger...then it will become profitable?