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(20-10-2014, 10:54 AM)AlphaQuant Wrote: (20-10-2014, 10:01 AM)hh488 Wrote: I learnt my lesson & am still learning too. Likely to cut loss soon.
That's true - it's always hard to cut losses but the flip side is that the funds can be redeployed elsewhere which actually gives a +ve return i/o pouring good money after bad. Even if you do not redeploy it, CPF gives 4% riskfree in nominal terms.
The best description I've read abt the airlines industry is that it "has an elastic demand with high fixed costs and a volatile input in oil". You cannot raise prices without your clients running away, and you are forever spending capex on buying planes just to stay on the spot and hedging oil is a nightmare. Perhaps for your next investments you can think abt these factors.
If you look at Ryanair and AirAsia, both of which have done decent in a tough industry, i think the main difference between them and the rest of the LCCs is the presence of CEOs like O'Leary and Fernandes who have the dare to challenge regulators, slash costs and run an extremely tight ship with all eyes on the bottomline. Some people call them charismatic, some people call them a**holes but the fact is that they are effective. I don't see someone like that at the helm at Tiger and unless that happens i doubt the turnaround will be effective.
Kind of agree that budget airlines customers are price sensitive to air ticket prices (a simple search on skyscanner will allow me know the cheapest ticket), while the industry requires huge capex and high fuel cost as a percentage of cost (I doubt oil price will stay low for extended period, and oil prices has detrimental effects on airline bottomline).
Could not appreciate the share price increase recently. Divested my stakes in Tiger, leaving the profit in shares only.
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SINGAPORE - Singapore budget carrier Tigerair has narrowed its net loss to $18.8 million for the three months to March 31, 2015, from a $95.5 million loss for the same period last year.
At the operating level, the loss fell to $2.3 million, compared to $24.2 million a year ago.
The improved performance was on the back of stronger yield, more seats being filled per aircraft and lower fuel cost, the airline said on Tuesday.
For the full year to March 31, net loss after tax was $264.2 million, higher than last year's loss of $223 million.
- See more at: http://www.straitstimes.com/news/busines...4PAQo.dpuf
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(05-05-2015, 10:59 AM)kayhian Wrote: SINGAPORE - Singapore budget carrier Tigerair has narrowed its net loss to $18.8 million for the three months to March 31, 2015, from a $95.5 million loss for the same period last year.
At the operating level, the loss fell to $2.3 million, compared to $24.2 million a year ago.
The improved performance was on the back of stronger yield, more seats being filled per aircraft and lower fuel cost, the airline said on Tuesday.
For the full year to March 31, net loss after tax was $264.2 million, higher than last year's loss of $223 million.
- See more at: http://www.straitstimes.com/news/busines...4PAQo.dpuf
With current lower oil price, Tiger is making losses? What if oil price were to go up?
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Tigerair turns S$600,000 operating profit in Q1, reversing loss in previous quarter
http://www.channelnewsasia.com/news/sing...99622.html
Turnaround in the cards
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(23-07-2015, 02:10 PM)butcher Wrote: Tigerair turns S$600,000 operating profit in Q1, reversing loss in previous quarter
http://www.channelnewsasia.com/news/sing...99622.html
Turnaround in the cards
rising tides or real turn around......
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Airline business, esp. budget airline business has wafer thin profit ...
hence difficult to build up their Asset Value and cashflow from the operating profit.
Any hiccup will certainly land them in trouble ( like Air Asia and MAS ... ) ,
don't know about others view, but personally I will avoid them like plague.
(23-07-2015, 02:55 PM)sg550319 Wrote: (23-07-2015, 02:10 PM)butcher Wrote: Tigerair turns S$600,000 operating profit in Q1, reversing loss in previous quarter
http://www.channelnewsasia.com/news/sing...99622.html
Turnaround in the cards
rising tides or real turn around......
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Anyone still keen in tiger air?
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I heard the jetstar did very well. If is true, i do not think budget airline cannot make it. The key is have they get their operational model right. Is there focus on internal institution stability. Many org makes the mistakes to focus all their money on the brightest stars in the company. The ones who bring sustain growth, strong processes and stability are typically the 2nd tier workers. They are the company fundamental.
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Takeover is here. 41 cents/share.
(not vested in airlines)
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will it go thru?
cos many could have bought it when it was a dollar odd..
now Tiger will correct to 41cents.
good esp for those that bought when it was as low as odd 30cents .
but those long time shareholders will, esp those that started in Jan 2010, when it first IPOed at $1.50 will be ....
granted, there were some rounds of stock issue..
i duunoe man. feels like low ball at first glance..
just a personal view here
(not vested in airlines atm)..
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