Tigerair keeps sliding

Photo courtesy Tigerair

Photo courtesy Tigerair

IS it any surprise that budget carrier Tigerair continues to slide as the airline posted a deeper net loss of S$95.5 million (US$76.2 million) in the quarter ending March, nearly 20 per cent more than the corresponding quarter’s performance last year.

Tigerair attributed the worsening performance to joint-venture costs, primarily the loss accrued from its investment in Tigerair Mandala based in Indonesia to the tune of more than S$20 million. We have heard for a long time how Tiger has been mulling over the decision to let Mandala go, and it is reported yet again that the Tiger Airways group is reviewing its investment in Tigerair Mandala. However, the cost of inaction or an inability to sell its stake continues to prove to be enormous.

The Holding company warned of a bleak future ahead: “Due to an industry over-supply of capacity, Tigerair continues to operate in a challenging business environment. It is expected that yield and load factors will remain under pressure.”

And not too long ago, 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.”

What next, one asks and asks again and again. (See What next, Tigerair? Mar 29, 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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