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.


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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