Tigerair turns around

Courtesy AFP

Courtesy AFP


AT last Tigerair is reporting a positive quarter (3QFY15) with aprofit after tax of S$2.2 million (US$1.76 million), compared to a hefty loss of S$118.5 million in the previous year. This was achieved on the back of a reduction in costs by 1.5% and capacity by 5.7% that resulted in a higher load factor by 6.2 percentage points and an improved yield by 4.9%. More notably, actual fuel costs fell 21.2% from S$82 million to S$65 million, a blessing of the current slump in the global oil market.

But Tiger, as its CEO Lee Lik Hsin said in a statement issued by the airline, is `not out of the woods yet`. Moving forward, the budget carrier looks to its affiliation with parent Singapore Airlines (SIA) for strength. SIA has increased its stake in Tigerair to 55%, and has not ruled out increasing it further. This suggests a more direct involvement by SIA in Tigerair`s affairs.

Indeed, it is going to be a family affair, with Tigerair saying it will work more closely with step-sibling Scoot. Presumably that must also mean joining hands to take on the competition posed by the likes of AirAsia and Jetstar.

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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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