Tiger Airways

[CityFarmer]

Post mortem review by the chairman. The biggest mistake is the Australian operation, IMO.

Tigerair chairman regrets excessive plane orders

The outgoing chairman of beleaguered Tigerair has acknowledged that the budget carrier made some mistakes over the years, from ordering too many planes to failing to keep a close eye on its Australian operations.

J.Y. Pillay also told the firm’s annual general meeting that the airline may have listed too early, adding that while tough operating conditions have hit the industry as a whole, “Tiger's experience was perhaps more severe.”
http://www.theedgesingapore.com/the-dail...rders.html

[greengiraffe]

Alamak, Tiger should go to sleep and make way for Scoot since Scoot is much better as a budget airline...

Scoot and Tigerair link up
Jamie Freed
337 words
11 Aug 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Singapore Airlines' budget medium-haul arm Scoot has received the green light to co-ordinate on pricing, scheduling and marketing with Tigerair Singapore, in a move that could lead to better connections for Australian travellers heading to Asia.

The Competition Commission of Singapore on Friday approved an anti-trust immunity application that had been lodged in December.

"That will allow us to align schedules, talk about pricing, jointly market, perhaps integrate our reservation systems more closely so it is a more seamless experience for the customer," Scoot chief executive Campbell Wilson told The Australian Financial Review on Friday. "Obviously in jurisdictions where we require the local anti-trust regulator to adjudicate – i.e. Australia – we wouldn't do so. But other routes we would."

Scoot and Tigerair Singapore both offer flights between Perth and Singapore. Mr Wilson said the airlines would consider applying to the Australian Competition and Consumer Commission to allow for more co-ordination now that the Singapore application had been approved. Scoot could also consider forming closer ties with Tigerair Australia to allow for better domestic connections within Australia.

Low-cost carriers are increasingly turning their attention to connecting traffic rather than focusing only on point-to-point travel.

Nearly half of rival AirAsia X's passengers on flights from Australia to Kuala Lumpur connect to onward flights throughout Asia. AirAsia X has also flagged it could consider resuming flights from Kuala Lumpur to Europe once it receives A350 aircraft later in the decade, which could bring lower prices on the Kangaroo route.

Mr Wilson said he did not have an exact figure on how many of Scoot's customers were connecting in Singapore because tickets were often booked separately, but he said it would be in the "double digits".

Scoot flies to Singapore from Sydney, the Gold Coast and Perth, and will consider adding other destinations such as Melbourne, once it boosts the size of its fleet from the middle of next year.


Fairfax Media Management Pty Limited

Document AFNR000020140810ea8b00023

[greengiraffe]

http://www.businesstimes.com.sg/companie...4m-q2-loss

SIA rescues bleeding Tigerair after shock S$182.4m Q2 loss
Budget carrier to become subsidiary; Aussie joint venture sold to Virgin for A$1

By
Angela Tanangelat@sph.com.sg
32967445.jpg SINGAPORE Airlines (SIA) has come to the rescue of Tiger Airways again – this time with hard cash. The national carrier will be injecting up to S$140 million to plug the budget carrier's haemorrhage - PHOTO: SPH
18 Oct5:50 AM
Singapore

SINGAPORE Airlines (SIA) has come to the rescue of Tiger Airways again – this time with hard cash. The national carrier will be injecting up to S$140 million to plug the budget carrier's haemorrhage.

The funds will be part of a proposed rights issue Tigerair announced on Friday to raise S$234 million.

With its regional ambitions savaged by fierce competition, Tiger on Friday unveiled a staggering net loss of S$182.4 million for its fiscal second quarter ended Sept 30, 2014, compared with a net profit of S$23.8 million a year ago.

It also proposed a rights issue of about 1.2 billion new shares priced at 20 Singapore cents each, a 38 per cent discount to its close of 32.5 cents a share on Thursday.

SIA, which holds a 40 per cent stake in the company, said it will subscribe to its entitlement and excess rights shares, up to S$140 million. "Singapore Air is rescuing Tigerair," said K Ajith, a Singapore-based analyst at UOB Kay Hian. "With the conversion of securities and rights offering, there will be less risk to the balance sheet. I don't foresee Tigerair needing more funds after this."

Prior to the rights issue, SIA will convert its 189.39 million perpetual convertible capital securities (PCCS) holdings into shares. The conversion will raise SIA's stake in Tigerair from 40 per cent to about 55 per cent, and possibly up to 71 per cent after the rights issue, assuming SIA is the only one to subscribe for its rights and convert its PCCS.

SIA will not be making a general offer as Tigerair's minority shareholders had approved a whitewash resolution in March 2013 to waive their rights to receive a general offer as a result of the PCCS conversion.

In another telling development, Tigerair said it was exiting Australia, barely months after it exited Indonesia and the Philippines. It will sell its remaining 40 per cent stake in loss-making Tigerair Australia to Virgin Australia for A$1 – Virgin paid A$35 million for its existing 60 per cent stake barely 14 months ago. The estimated net loss arising from the sale is S$60.1 million.

"We need to now stem the losses arising from this joint venture and divert our resources back towards our Singapore-based airline in the execution of the turnaround plan," said Lee Lik Hsin, Tiger's chief executive since May and an SIA veteran for 20 years.

Dubbed the "Sale of the Century" by some analysts, the move was largely expected given that Tigerair Australia has been suffering operating losses since it started its services in Australia in 2007.

Its financial woes worsened after safety breaches grounded its entire fleet in Australia in 2011.

Already, the group's plunge into the red for the second quarter ended Sept 30 included S$161.1 million in one-off accounting provisions, comprising S$59.8 million for the divestment of Tiger Australia and S$99.3 million related to the sublease of surplus aircraft which it was forced to sublet at a discount to address its over-capacity headaches.

While analysts said it made sense for Tigerair to do a reset and focus on its Singapore carrier and its tie-up with Scoot - SIA's other no-frills, low-fare airline - many were surprised by the extent of the "value destruction".

"Shareholders must ask SIA and Tigerair for an explanation. Who's running the show? Details are sorely lacking," said an analyst.

Tigerair also needs to convince investors it still has a growth strategy, now that its regional wings have been clipped.

"They need to address a strategy going forward because they have divested Australia, they are out of Indonesia, out of the Philippines, so what next now?" said Derrick Heng, analyst at Maybank-Kim Eng. "Are they going to stay as a standalone unit just in Singapore? That will put them at a disadvantage to other players like AirAsia, which is growing across the whole region."

It is too early to say if SIA was throwing good money after bad. "On paper, all these make sense. Scoot and Tigerair have lots of synergies they can tap. But how the alliance will pen out, it is still a wait-and-see situation," said an analyst with a foreign bank.

Tigerair shares fell almost 11 per cent to a record low of S$0.29 apiece before recovering to end Friday at S$0.31, down 4.6 per cent on the day and nearly 40 per cent so far this year. SIA, a unit of Temasek, was unchanged at S$9.65 a share.

In Australia, local media reported that Virgin Australia signalled it plans to cut a bloated Tiger Australia fleet that has hobbled its own turnaround efforts.

[specuvestor]

It's a continuation of what we discussed on the SIA thread in April last year. Since then it seems those around me who takes SIA have good things to say about Emirates or Qatar Air

http://www.valuebuddies.com/thread-261-p...l#pid46224

If people are amazed at the value destruction in Tiger, they should be awed by the same in SIA

[cfa]

Years back , SIA changed its website for flight booking and the new website was so unfriendly for customers to book online. The management refused to accept negative feedbacks from its customers . SIA thought customers have no other choices ?

[Obama]

over the years so much value destroyed in this counter

[CY09]

As I have mentioned in SIA thread's, SIA is facing intense competition in their segment against Emirate and Qatar. To put it in an analogy, its like a private property developer (SIA) competing against HDB (Gulf airlines) to provide $300 psf flats of reasonable quality, amenities and services to Singaporeans.

So how about the LCC? In the latest results, it is revealed even Scoot, the more successful of the two is making losses. However, I feel scoot will eventually make a slight profit as it is still in its early stages of operation. Secondly, it can be seen that Tiger and Scoot are starting to cooperate unlike in the past where the two operated on same flight routes and fought each other in price. This resulted in Tiger incurring large losses as it was losing out to Scoot in terms of advertising presence and pricing. In fact, I think Tiger's Aussie JV and Tiger airways started making larger losses with the incorporation of Scoot besides the safety fiasco in Aussie. This is no mere coincidence.(*Scoot operating losses is 60M while Tiger is expected to make about 71M operating loss)

While Tiger mgmt are partly at fault for this, I feel SIA mgmt should also be blamed for Tiger's plight. The introduction of Scoot is really a nail in the coffin for Tiger. Moving forward, Tiger's non one off losses will be less as there are now less overlaps with Scoot. My advice to Tiger is to terminate its Sin-Taipei-Narita route and concentrate on its <3 hr flights which scoot has less of a presence. My advice to SIA mgmt will be to kill off Tiger and put its profitable routes into Scoot

[BlueKelah]

SIA just sold tiger off to virgin for a dollar liao.

Both scoot and tiger were avenues for SIA to get rid of their old planes.

No one stupid enough to buy old planes anymore so SIA has to think of ways to recycle their planes...

via Xperia Z1 with Android 4.4.4 tapatalk.

[tonylim]

If you attend the AGM and try talking to the CEO , likely you will lose confidence in the management.
EQ is very important in conducting biz , especially in service industries. (Just my opinion)
I sold all my holdling after first AGM with him.

[hh488]

I am stuck with this Tiger using CPF fund.

Now they are calling for another rights. Should I continue with it?

Since they are so confident abt future, how come SIA or Temasek cannot come in & buy out the minority shares? Give a good price say 70ct & close the chapter, just like MAS.