Category Archives: Tigerair Mandala

Mandala Airlines to be shut down on July 1, Tigerair pulls the funding

Tigerair Group (Singapore), which controls 35.8 percent of the Mandala Airlines (Tigerair Mandala) stock, has decided to stop funding the loss-making Indonesian carrier. The company issued this statement:

PT Mandala Airlines deeply regrets to inform customers that its airline (operating under the brand-name of  Tigerair Mandala) will cease operations from July 1, 2014.

Customers who hold a flight booking with flight designator “RI” should note the following:

All Mandala flights from now to June 30, 2014 will operate as scheduled.

The last flight to be operated will be RI 545 on July 1, 2014, HKG-DPS departure time 0235.

All other flights operated by Mandala on July 1, 2014 and thereafter will be cancelled.

As a gesture of goodwill, the Tigerair Group will assist all affected customers with either a flight transfer to a TR flight if seats are available, or a refund for tickets booked for travel on July 1 or thereafter. Tigerair has no legal obligation or responsibility to do so. All legal obligations and responsibilities still rest with Mandala.

The Board and staff of Mandala wish to thank all customers for their support and sincerely apologize for any inconvenience caused.

Mandala Airlines originally started operations in February 1970 and was resurrected on April 5, 2012 under the assistance of Tigerair (Singapore).

Read the full report from Bloomberg Businessweek: CLICK HERE

Copyright Photo: Richard Vandervord/AirlinersGallery.com. Mandala Airlines’ Airbus A320-232 PK-RMP (msn 5073) with the Tigerair tail arrives at Bangkok.

Tigerair Mandala: AG Slide Show

Tigerair (Singapore): AG Slide Show

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Tiger Airways Holdings swings to the red for the fourth quarter and the fiscal year

Tiger Airways Holdings Ltd (Tigerair) (Singapore) reported an operating loss of $24.2 million (all amounts in Singapore dollars) for the fiscal fourth quarter ended 31 March 31, 2014, compared to an operating profit of $12.7 million recorded in the previous corresponding quarter.

Total revenue declined by 32.7% to $161.9 million in the fourth quarter, while total expenses fell 18.3% to $186.1 million year-on-year, mainly due to the exclusion of Tigerair Australia from the Group’s results, as the airline ceased to be a subsidiary from July 8, 2013.

Loss after tax of $95.5 million for the fourth quarter was largely attributed to $52.4 million in exceptional charges and $21.5 million in share of losses of associate and joint venture. Exceptional charges comprised a $25.0 million provision for a planned grounding of eight aircraft and a $27.4 million impairment of associate, while the share of losses of associate and joint venture included an $11.9 million provision relating to Tigerair Mandala. These exceptional charges and provisions, which amounted to $64.3 million, demonstrate the Group’s resolve to re-set its strategy and consolidate its capacity.

For the full fiscal year ended March 31, 2014, the Group recorded an operating loss of $52.0 million compared to an operating profit of $7.3 million year-on-year. Group loss after tax widened to $223.0 million, compared to the previous year’s loss after tax of $45.4 million.

Operations Review (fourth quarter)

Despite an increase in traffic volume (+13.4%), Tigerair Singapore’s revenue for 4Q declined by 4.5% to $159.0 million, as yield fell 16.3% and load factor dropped 9.1 percentage points to 75.1%. Unit cost rose by 2.2% as the increase in expenses (+29.9%) outpaced capacity growth (+27.1%). Consequently, Tigerair Singapore recorded an operating loss of $29.4 million for the quarter compared to an operating profit of $21.5 million a year ago.

The company warned of a bleak outlook and was re-assessing its investment in Tigerair Mandala, the group’s Indonesian venture according to Reuters.

Read the full report from Reuters: CLICK HERE

Top Copyright Photo: Olivier Gregoire/AirlinersGallery.com. The pictured Airbus A320-232 F-WWDS (msn 4973) became 9V-TRE on delivery.

Image Below: Tigerair. Tigerair in March 2014 signed an Airbus deal to bring 37 new fuel-efficient A320neo aircraft from 2018 onwards. The new aircraft will be powered by a Pratt & Whitney 1100G-JM engine and equipped with large Sharklet wing tips, these new-generation aircraft deliver 15% greater fuel efficiency than the current A320ceos.

Tigerair Did You Know?

Tigerair (Singapore): AG Slide Show

Tigerair signs MOU for 37 Airbus A320neo aircraft + 13 options

Tigerair A320neo WL (13)(Flt)(Airbus)(LRW)

Tigerair (Singapore) has signed a Memorandum of Understanding (MOU) with Airbus for the purchase of up to 50 A320neo aircraft for future fleet renewal and growth. The deal covers 37 firm orders plus 13 options. The aircraft will be powered by Pratt & Whitney PW1100 engines and will be operated by the airline across its Asia-Pacific route network.

Tigerair, established in 2004 as Tiger Airways, comprises three airlines – Tigerair Singapore, Tigerair Mandala (Indonesia) and Tigerair Australia. Collectively, the Group’s network extends to over 50 destinations across 14 countries in the Asia-Pacific region. The Group currently operates an all-Airbus fleet of 48 A320-family aircraft, averaging less than three years of age.
Image: Airbus.
Tigerair (Singapore): AG Slide Show

How long will Tigerair continue to invest in Mandala Airlines?

Mandala Airlines (Tiger Airways Indonesia) (Jakarta) continues to lose money. As we previously reported, the airline was resurrected on April 5, 2012 as a joint venture between Tigerair (Singapore) (49%) and Saratoga Capital (51%) under the Tigerair brand. According to this report by Jakarta Post, Saratoga will continue to support the Indonesian carrier. There are unconfirmed reports that Tigerair will leave the joint venture.

Mandala suspended nine routes last month as it tries to cut its losses. The airline blamed high fuel costs.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-232 PK-RMQ (msn 5335) approaches the runway at Bangkok. Under the joint venture, Mandala removed its very colorful Mandala logo on the tail and instead adopted Tiger stripes on the tail. It is still operating under the Mandala name but under the Tigerair low-fare business plan.

Mandala Airlines: AG Slide Show

Current Tigerair routes:

Tigerair 3.2014 Route Map