What next, Tigerair?

Courtesy Reuters

Courtesy Reuters

Singapore-based budget carrier Tigerair which is 33-per-cent owned by Singapore Airlines has cancelled its aircraft order of nine Airbus A320 aircraft for this year and the next. This should not come as a surprise judging by recent moves to extricate itself from the loss-making Tigerair Philippines and Tiger Mandala Airlines. The Philippines stake has been sold to Cebu Pacific Air.

Instead, Tigerair signed a new deal for 37 Airbus A320neo aircraft worth US$3.8 billion to be delivered over eight years from 2018, largely as a replacement program.

Bitten by losses, Tigerair has begun to tread cautiously in a highly competitive environment even as there are promises of a growing Asean and nearby market, expressing concerns of overcapacity. This means the carrier is not embarking on any ambitious expansion program over the next few years as the carrier treads cautiously in a field dominated by rivals AirAsia, Jetstar and Lion Air.

Tigerair chief Koay Peng Yen said: “We have re-calibrated our strategy and taken the necessary steps to re-position Tigerair for a brighter future. This (aircraft) deal effectively dissipates some concerns over a potential capacity overhang in the next couple of years. It also allows us to continue building on our leadership position in budget travel at a measured pace.”

Of course, taking a step back could be strategic. The question is: Has Tigerair the choice? Not knowing what that strategy, if at all you can call it one, entails, we can only ask: What next, Tigerair? (See Tigerair sees red, continues to retreat: Will SIA let it go? Mar 4, 2014)

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About Dingzi
Writer by passion, with professional expertise in aviation, customer service and creative writing. Aviation veteran, author, editor and management consultant. Besides commentary on business issues and life-interest topics, travel stories and book reviews, genres include fiction, poetry and plays. Nature lover who abhors cruelty of any form to animals, and a tireless traveler. Above all, a dreamer.

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