Singapore Airlines to fully acquire Tigerair

Courtesy Reuters

Courtesy Reuters

As anticipated, Singapore Airlines (SIA) is taking steps to rationalize Group operations. (See Singapore Airlines rationalizes operations, Nov 4, 2016). The parent airline has offered to buy out the remaining shares of budget carrier Tiger Airways, of which it currently owns 55.8 per cent. Tigerair will then be delisted.

SIA CEO Goh Choon Phong said: “We are confident that full integration of Tiger Airways into the SIA Group will result in enhanced operational and commercial synergies, ensuring Tiger Airways’ long-term success.”

SIA reported an improved Group operating profit of S$240 million (US$171 million) by 40.4 per cent for Q2 ending September 30, 2015. This raises the Group operating profit excluding Tigerair by 46.2 per cent year-on-year to S$79 million for the first half of Year 2015/16. Lowe fuel costs were a major contributing factor. Also, the Group’s share of losses of associated companies including Tigerair declined by S$117 million. Operating profit for the parent airline was S$206 million, up 12.6 per cent from S$183 million, and for regional carrier SilkAir S$26 million which is a hefty increase from S$5 million from the previous year. Long-haul budget subsidiary cut its losses by half from S$44 million to S$22 million.

What then is the likely future of Tigerair? Already the airline is said to be complementing its operations with Scoot, working together instead of competing with each other in the same market. With SIA keen to expand Scoot, it may not be too far in the future before Scoot assimilates the operations of Tigerair. Or, unlikely as it seems that SIA will relish competition from a stronger Tigerair, still consider tying a “for sale” tag around the tiger’s neck?

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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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