Tag Archives: Tiger Airways

Tigerair’s quarterly loss widens to $143.3 million, Singapore Airlines jumps in and takes a majority 55% stake, will sublease 12 A320s to IndiGo

Tiger Airways Holdings Limited (Tigerair) (Singapore) has reported an operating loss of S$25.3 million ($19.8 million US) for the quarter ended September 30, 2014 (Fiscal Second Quarter), compared to an operating loss of S$12.8 million ($10.0 million US) recorded in the previous corresponding quarter last year

Tigerair Singapore recorded an operating loss of S$31.3 million ($24.5 million US) for the quarter compared to S$18.1 million $14.2 million US) a year ago. Revenue decreased by 4.9% to S$143.9 million ($113 million US) on the back of a rationalization of Tigerair Singapore’s network. The resulting improvement in load factor (+4 percentage point), was nevertheless offset by lower yields (-10.4%). Expenses increased by 3.4% to $175.2 million on higher unit cost (+3.1%).

The Group recorded loss after tax of S$182.4 million ($143.3 million US) in the Fiscal Second Quarter, compared to profit after tax of S$23.8 million $18.7 million US) a year ago. In total, the Group recorded one-off accounting provisions aggregating S$161.1 million in 2QFY15, mainly comprising S$99.3 million $126.6 million US) relating to the sublease of surplus aircraft and S$59.8 million ($46.9 million) for the divestment of Tigerair Australia.

According to the airline, “Tigerair’s largest shareholder, Singapore Airlines Limited (Singapore), has undertaken to subscribe for its pro rata entitlement, and also subscribe for excess Rights Shares, up to a total of S$140 million. Prior to the Rights Issue, SIA will convert its perpetual convertible capital securities (PCCS) holdings into Shares. The conversion will raise SIA’s stake in Tigerair from 40% to approximately 55% before the Rights Issue, effectively making Tigerair a subsidiary of SIA. 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 other news, Tiger Airways Holdings group (Tigerair) has reached an agreement with InterGlobe Aviation Limited (IndiGo) relating to the subleasing of 12 of Tigerair’s surplus aircraft by the Indian budget carrier. This sublease arrangement enables the Group to reduce excess capacity significantly and hence lower related leasing cost.

Most of these aircraft were previously operated by Tigerair Philippines and Tigerair Mandala, and had been returned to the Group upon its divestment of Tigerair Philippines in March 2014 and Tigerair Mandala’s cessation of operations in July 2014.

These 12 aircraft will be progressively delivered to IndiGo over a period of six months commencing in October 2014. Each aircraft will be subleased for between three and four years. With the lease of one of the 12 aircraft expiring in 2018, only 11 of the aircraft will be returned to the Group at the end of their respective sublease periods. Following their return, seven of the 11 aircraft are expected to re-join the operating fleet, while the remaining four may be progressively re-introduced back to the service network within two years.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-232 9V-TRI (msn 5596) of Tigerair (Singapore) arrives in Bangkok.

Tigerair (Singapore): AG Slide Show

Tigerair (Singapore) Aircraft 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 agrees to sell Tigerair Philippines to Cebu Pacific Air, both carriers agree to an alliance

Tigerair (formerly Tiger Airways) (Singapore) has issued this statement with Cebu Pacific Air (Manila):

Tigerair and Cebu Pacific Air, the largest budget carriers based in Singapore and the Philippines respectively, have announced plans to enter into a strategic alliance. Both parties will collaborate commercially and operationally on international and domestic air routes from the Philippines, thereby creating the biggest network of flights to the region.

The alliance will enable both parties to leverage their respective strengths and harness synergies to enhance their network coverage, flight frequencies and customer service, and jointly market their routes using interline arrangement.

Subject to regulatory approval, the interline partners will jointly operate common routes between Singapore and the Philippines. As part of the strategic alliance, Tigerair will divest its 40% stake in Tigerair Philippines to Cebu Pacific.

Group CEO of Tigerair Mr Koay Peng Yen said, “Tigerair and Cebu Pacific share a vision for both airlines to join forces and create the largest budget airline network between Asia and the Philippines. This partnership with Cebu Pacific is consistent with our asset-light strategy, and builds upon our other alliances. We also look forward to achieving greater cost savings from the coordinated operations while providing more travel options and greater convenience for our customers.”

President and CEO of Cebu Pacific Mr Lance Gokongwei said, “This strategic alliance will allow both Cebu Pacific and Tigerair to leverage our extensive networks spanning from North Asia, ASEAN, Australia, India, all the way to the Middle East. Our customers can expect an even wider range of travel options, and seamless travel connections while enjoying our trademark low fares.”

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Sporting the new titles and look, Tigerair’s Airbus A320-232 9V-TAS (msn 4493) arrives in Bangkok.

Tigerair (Singapore): AG Slide Show

Cebu Pacific Air: AG Slide Show

Bottom Copyright Photo: Ken Petersen/AirlinersGallery.com. Cebu Pacific Air’s Airbus A320-214 RP-C3262 (msn 4537) also arrives in Bangkok.

Virgin Australia moves one step closer to acquiring 60% of Tiger Airways Australia

Virgin Australia Holdings Limited (Virgin Australia Airlines) (Brisbane) today (May 28) welcomed confirmation from the Foreign Investment Review Board that it has no objections to the proposed acquisition of 60 percent of the existing shares in Tiger Airways Australia Pty Ltd (Tiger Australia) (Melbourne).

This confirmation satisfies another condition for the proposed acquisition of Tiger Australia, which will enable Virgin Australia to access the budget market segment and expedite the growth of Tiger Australia.

The proposed transaction still remains subject to certain conditions and Virgin Australia expects the transaction to be completed by mid-July.

Top Copyright Photo: Ivan K. Nishimura/Blue Wave Group. Virgin Australia’s brand new Boeing 737-8FE WL VH-YFF (msn 40994) and crew pass through Honolulu on delivery.

Virgin Australia FAs (Virgin Australia)(LR)

Above Copyright Photo: Virgin Australia.

Virgin Australia: AG Slide Show

Tiger Airways (Australia): AG Slide Show

Bottom Copyright Photo: Peter Gates/AirlinersGallery.com. Tiger Airways’ Airbus A320-232 VH-VNH (msn 3734) stops at Brisbane.

Virgin Australia Romance is back (VA)(HR)

Romance is Back Video:

Sydney Morning Herald: Interview with Tiger Airways Australia’s new CEO Rob Sharp

Tiger Airways (Australia) (Melbourne) intends to expand its fleet from 11 aircraft to 23 in five years. The expanding airline will be battling Jetstar Airways for market share in the budget travel segment. Rob Sharp is the new CEO, the fifth CEO in five years.

Read the full interview: CLICK HERE

Copyright Photo: John Adlard. Airbus A320-232 VH-VND (msn 3206) taxies past the camera at Sydney.

Tiger Airways (Australia): AG Slide Show

Tiger Airways logo

Route Map:

Tiger Airways (Australia) 5:2013 Route Map

Mandala Airlines to acquire 18 additional Airbus A320s

Mandala Airlines (Tiger Airways Indonesia) (Jakarta) intends to acquire 18 additional Airbus A320s by 2014 according to its major stockholder and Today.

Read the full report by Today: CLICK HERE

Copyright Photo: Michael B. Ing. Airbus A320-232 PK-RMP (msn 5073) arrives at Bangkok.

Mandala Airlines:

AG Slide Show

Route Map:

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Mandala 4:2013 Route Map

Virgin Australia makes three bold moves

Virgin Australia Holdings Limited (Virgin Australia Airlines) (Brisbane) is making three bold moves. The company issued the following statement:

Virgin Australia Holdings Limited today announced three transactions designed to accelerate the growth of the business, diversify its earnings and increase competition in Australia.

The transactions include:

  • making a placement of shares to Singapore Airlines (Singapore), which will see Singapore Airlines owning a 10% interest in Virgin Australia Holdings;
  • entering a Share Purchase Agreement to acquire 60% of the existing shares in Tiger Airways Australia (Melbourne) from Tiger Airways; and
  • entering an in-principle agreement with Skywest Airlines (Perth) to acquire 100% of its business.

Virgin Australia Chief Executive Officer John Borghetti said: “The transactions announced today are in line with Virgin Australia’s strategy to become the airline of choice in all markets, in order to diversify our earnings and drive growth opportunities for the business.

“The acquisition of Tiger Australia and Skywest provides Virgin Australia with a strong presence in the budget, Fly-in Fly-Out (FIFO) and regional markets, enabling us to fast-track our expansion in these areas and become a stronger competitor”, Mr Borghetti said.

“These transactions will bring important benefits to Australia, driving growth in jobs, tourism and competition”, Mr Borghetti said.

If approved, following the completion of the transactions, the Virgin Australia Group will expand to 139 aircraft and over 9,000 employees .

Virgin Australia will keep the market updated regarding progress on these transactions.

Meanwhile partner Singapore Airlines (Singapore) has ordered 20 Airbus A350-900s and five A380s and will assign its 20 Boeing 787-9 Dreamliners to subsidiary Scoot (Singapore).

Top Copyright Photo: Lloyd Fox. If approved, Skywest Airlines (Perth) will become a 100% subsidiary of Virgin Australia. The regional carrier is already operating ATR 72-500s for Virgin Australia in their livery. The Skywest brand used for other Western Australia routes is now likely to disappear.

Virgin Australia: 

Skywest Airlines: 

Tiger Airways (Australia): 

Bottom Copyright Photo: Micheil Keegan. Since Singapore Airlines and its Tiger Airways (Australia) subsidiary are now partners with Virgin Australia, it is unclear if Tiger Airways (Australia), a competitor of Virgin Australia, will continue to use the the Tiger Airways brand in Australia or operate now under the Virgin Australia name. Airbus A320-232 VH-VNO (msn 4053) climbs away from Sydney.