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7JetSet7 Code: TGR
Status: Currently Not Operational
Region: ORIENT
Employees 250
Telephone: +65 6822 2300
Fax: +65 6424 6255

Click below for data links:
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Established in 2003 and started operations in 2004. Tiger Airways (TGR) is a subsidiary of Singapore Airlines (SIA). Scheduled, international, passenger, jet airplane services.

Changi Airport Post Office
PO Box 82
Singapore 918413, Republic of Singapore

March 2004: 4/2 orders (July 2004) A320's (V2500), 180Y.

June 2004: 1st A320-232 (2203, 9V-TAA), GATX (GAX) leased.

July 2004: A320-232 (2195, 9V-TAB), CIT (TCI) leased.

August 2004: Contract with InteliSys Aviation Systems to deploy its Amelia Reservation System, which is to be deployed by the 4th Quarter.

Tiger Airways (TGR) has set a goal of selling 80% of its tickets via the Internet and its fares are expected to be up to -40% lower than current other fares. Expects to secure up to 200,000 customers by end of 2004, with growth rate of 25-35% in each of next 5 years.

Received its Air Operators Certificate (AOC).

In September 2004, to Bangkok (3/day) and plans to add 10 destinations by end of 2004, +15 in 2005.

(TGR) will have 4 A320's by end of 2004, +4 in 2005 & 2006.

September 2004: Tiger Airways (TGR) launched its 1st services with Singapore (Changi) - Bangkok (3/day); - Phuket (daily); - Hat Yai (daily); and Phuket - Hatyai (daily). Plans to serve 10 destinations and be profitable in its 1st year, rising to 15 in the 2nd.

Has signed an agreement with Singapore (CAA) to use the low-cost terminal that will be built at Changi with completion expected by 2006.

S$110 Million/$64.8 Million, 5-year maintenance contract with (SIA) Engineering Company for provision of Maintenance Repair & Overhaul (MRO) services for its A320 fleet, including light & heavy maintenance, component overhaul, as well as fleet and inventory technical management.

November 2004: Tony Davies, CEO, ex-Managing Director bmiBaby (BMI), replaced Patrick Gan, who resigned.

Singapore and Sri Lanka have signed an "open skies" agreement, where restrictions have been lifted on the countries' operations between the 2 countries.

A320-232 (2331, 9V-TAC), Boullioun (BOU) leased delivery.

June 2005: At the Paris Air Show, Tiger Airways (TRG) agrees to take +8 orders (March 2006) A320-200's.

July 2005: Qantas's (QAN) ambitions to establish a low-cost beachhead in Asia appear to be hanging in the balance after its JetStar Asia (JSA) joint venture confirmed it is in alliance talks with another Singapore-based Low-cost Carrier (LCC), Valuair (VLU). In the first major consolidation move in the Asia market, Ken Ryan, CEO, (JSA), which is 49% owned by (QAN), said (QAN) and (VLU) "are exploring a variety of ways they can work together or cooperate with each other." The development reflects (JSA)'s frustrations at its inability to access rights to China and Indonesia and the heavy low-cost competition centered on Singapore, where three (LCC)'s are based including Singapore Airlines (SIA) subsidiary, Tiger Airways (TGR), and a 4th operator, AirAsia (ASW), is active. (JSA) which launched last December 2004, has withdrawn from Singapore - Pattaya and reduced its fleet requirements in 2005 from 8 to 4 A320's. Privately owned (VLU) launched in May 2004 also is facing considerable pressures in its home market. However, it gained limited rights to serve Chinese destinations and also operates to Hong Kong, Jakarta, Bangkok, & Perth.

Singapore - Philippine's Diosdad Macapagal International Airport (daily).

August 2005: Tiger Airways (TGR) CEO, Tony Davis stated that it will take up to three years for the low-cost carrier to post a profit. It previously forecasted a profit in its first year. Davis, the airline's second CEO, said that he hopes (TGR) will be able to launch flights to China and India shortly. Now operates six A320s serving nine destinations in Asia including Macau, Hanoi, Ho Chi Minh City, and Manila-Clark.

Singapore and India inked an agreement that allows airlines of both countries to expand services between Singapore and Kolkata, Bangalore and Hyderabad. Fifth freedom rights also were granted.

September 2005: Tiger Airways (TGR), the low-cost affiliate of Singapore Airlines (SIA), said it plans to expand its network to southern China, India, and Cambodia over the next year and more than double its capacity to three million passengers a year. The airline also expects to fly to Kolkata in India in the near future. It plans a 3X weekly service

October 2005: Changi Airport handled 2.19 million passengers in September, a +8.5% increase over the same month in 2004, Singapore Airport Terminal Services said. It said the rise reflected the rapid growth of low cost carriers there, which experience a +10.1% increase in flights. Changi plans to open its S$45 million ($27 million) low-cost-airline terminal in early 2006, despite the fact that it has only one carrier committed to using it. "Dow Jones Newswires" quoted a company spokesman as saying the airport may open the terminal to all airlines. So far, only Tiger Airways (TGR), the low cost affiliate of Singapore Airlines (SIA), has announced plans to use the new terminal.

November 2005: Tiger Airways (TGR) inaugurated service from Clark (Philippines) to Macau on Sunday. The airline is operating the new route with an A320.

(TGR) announced it will launch service to Darwin in Australia's Northern Territory beginning December 19, subject to government approval. The four-times-weekly service will be aboard a 180-seat A320 and will be the first low-fare service between Darwin and Asia. Fares will start at S$49.98/$29.37 one way. "We are excited to launch new low-fare flights to yet another country in the Asia/Pacific region, making (TGR) the fastest growing low-fare airline in the region," CEO, Tony Davis said in a statement. Singapore Airlines (SIA) holds a 49% stake in (TGR), which also serves Macau, Thailand, Vietnam, Indonesia, and the Philippines with A320s.

December 2005: Singapore Changi Airport will open its dedicated low-cost carrier (LCC) terminal on March 26, offering passenger charges that are nearly -40% below those at Terminals 1 and 2, the Civil Aviation Authority of Singapore (CAAS) said.

The total per-passenger charge will be S$13/$7.77, versus S$21 for the full-service terminals. The fee covers two components comprising a S$7 passenger service charge (PSC) and a S$6 passenger security charge.

While the security charge is the same as at the full-service terminals, the (PSC) is less than half the S$15 charged at Terminals 1 and 2. According to (CAAS), this is possible "because the general operating and maintenance costs are lower" at the (LCC) facility. For example, the 25,000 sq m single-story terminal has no moving sidewalks, escalators or air bridges. It initially will be capable of handling about 2.7 million passengers per year.

Airlines, retail operators and airport tenants at the new terminal will benefit from shop and office space rentals that are up to -50% lower than charges at Terminals 1 and 2. Landing and parking fees will be the same, however, since tenants "will be using the same air side facilities such as runways and taxiways," (CAAS) said. Tiger Airways (TGR) has committed to use the new facility.

January 2006: Singapore completed its new Budget Terminal for low-cost carriers at Changi. The facility, which will open in March, is 25,000 sq m in size, or about a tenth as large as Terminal 1 at Changi. The name of the terminal was selected through a naming contest that drew 12,000 entries, according to the Civil Aviation Authority of Singapore.

Swissport signed a five-year deal with Tiger Airways (TGR) to handle its entire ground operation at Singapore Changi, where Tiger (TGR) will become the first tenant of the new Budget Terminal.

(TGR) said it received (CAAC) approval to offer flights to "a number of cities in southern China" beginning in April.

February 2006: Tiger Airways (TGR) announced it will inaugurate new service from Singapore to Guangzhou (3x a week), Haikou (4x a week) and Shenzhen (3x a week) all located in China from April. All routes will be operated with A320s. (TGR) will increase the frequency of flights from Singapore to Bangkok from 7 to 11 a week on April 15th. The airline will then operate a 2nd flight on Mondays, Wednesdays, Fridays, & Sundays using its A320s.

The sale of Thailand's Shin Corporation, which owns 50% of Thai AirAsia (THA), to an investment group led by Singapore's Temasek Holdings sent shock waves through Kuala Lumpur-based AirAsia (ASW). Thai AirAsia (THA) was a joint venture between AirAsia (ASW) (49%) and Shin, the telecom giant founded by Thailand's controversial Prime Minister Thaksin Shinawatra, with 50%. The remaining 1% of the discount airline is owned by Thai AirAsia CEO Tasapon Bijleveld.

Temasek, the investment arm of the Singapore government, has a portfolio valued at S$103 billion/$63 billion and is the controlling shareholder of Singapore Airlines Group (SIA) with 57%. It also is a partner in (TGR) with an 11% stake and Jetstar Asia (JSA) with 19%. It is acquiring Shin Corporation in two stages, having spent THB73.3 billion/$1.85 billion for a 49.6% share with plans to invest THB79 billion for the remainder, according to The Nation in Bangkok.

Its acquisition of Shin Corporation pushes the foreign ownership component in Thai AirAsia (THA) above the 49% level permitted by law. According to sources at (THA), the airline has several Thai candidates lined up to buy the 50% stake from Temasek, although the latter has not indicated it is interested in selling the holding.

Later, details stated Temasek Holdings, the controlling shareholder of Singapore Airlines (SIA) and a major investor in two Singapore-based Low-Cost Carriers (LCC)s, (TGR) and Jetstar Asia (JSA), will retain a sizeable stake in Thai AirAsia (THA) under a new ownership structure announced recently to keep the carrier in compliance with Thai laws on foreign ownership. Temasek acquired Thai telecom giant Shin Corp, which owns 50% of (THA). The other major shareholder is AirAsia (ASW) with 49%. Thai AirAsia (THA) CEO Tasapon Bijleveld holds 1%.

Under Thai law, foreign investors may not own more than 49% of an airline, an amount that was exceeded given that AirAsia (ASW) is based in Malaysia and Temasek is based in Singapore.

Under the new shareholding structure, Shin's 50% stake is being sold for THB400 million/$10.2 million to a Thai company named Asia Aviation Company Ltd, which is owned 49% by Shin and 51% by Thai businessman Sittichai Veerathummnoon. AirAsia (ASW)'s stake will remain at 49%.

Singapore-based (LCC) (TGR) announced plans to fly to Haikou on Hainan Island and Guangzhou and Shenzhen from April. It initially will fly four times a week to Haikou and thrice-weekly to both Guangzhou and Shenzhen using two new A320s to be delivered in April. (TGR) now serves 12 cities in Thailand, Vietnam, Macau, the Philippines, Australia and Indonesia. The new services will be its first in China.

Changi Airport is preparing to open in March, its $45 million Budget Terminal that will cater to low-cost carriers (LCC)s. The new terminal is a sharp contrast to the lush interiors of T1 and T2, instead featuring a functional no-frills utilitarian design that reduces passenger and operating fees. Officials are expecting significant growth by (LCC)s that now account for only 10% of the airport's passenger flights.

"(TGR) decided they wanted to operate out of a purpose-built terminal," Long said. "It is a simple, single-story building with no escalators, aerobridges or elevators. The airline said they don't need [those]." (TGR), which currently operates at T1, will be the first and only operator at the Budget Terminal, starting with 12 daily flights, but Long expects other low-fare carriers to take advantage of the discounted facility. The passenger service charge is S$7 compared to S$15 at the other terminals. The security fee of S$6 will remain the same at all terminals.

March 2006: Tiger Airways (TGR) will double its service to Manila Diosdado Macapagal (fomerly Clark) Airport from one to two flights daily effective April 26. The Singapore Low-Cost Carrier (LCC) has increased capacity on the route nearly fivefold in the past year since starting with three weekly flights in April 2005.

(TGR) chalked up a major milestone, carrying its millionth passenger. CEO, Tony Davis told media he was "absolutely delighted to hit the one millionth passenger mark so early in the second year of operations." He predicted that "the rapid expansion with our A320 airplanes and new routes this year will allow us to shorten the time it takes to hit our second millionth passenger." The (LCC) will take delivery of two A320s in April and an additional three by year end. Its network, which now covers 13 cities in seven countries, will increase to 16 destinations next month, with flights to Guangzhou, Haikou and Shenzhen. It moves to Changi's new Budget Terminal later this month.

Singapore Changi opened its new Budget Terminal Sunday. Tiger Airways (TGR), which operates a fleet of four A320s, is the first and only airline currently operating out of the $27.5 million facility, construction of which was completed in January. (TGR) operated 16 flights (eight departures and eight arrivals) a day. "We are happy to have so many flights on the first day of operations at the new Budget Terminal. This will allow us to put our operational systems and procedures through the mill and ensure we are well placed to scale up our operations when our two new A320 airplanes start operations next month," (TGR) CEO, Tony Davis said. "We will be announcing more new destinations in the coming months."

A320-232 (2724, 9V-TAE), delivery.

April 2006: Tiger Airways (TGR) of Singapore offered to take over routes from archrival Jetstar Asia (JSA). Responding to press reports that Orangestar Investment Holdings, parent of Jetstar Asia (JSA) and Valuair (VLU), is seeking fresh funding of S$36 million/$22.3 million after having exhausted the S$60 million that was pumped in at the time of the merger last July, Tiger (TGR) CEO, Tony Davis said in a statement, "We are well placed to take over some of Jetstar Asia (JSA) - Valuair (VLU)'s regional routes if they want to give them up. With our new airplane deliveries, we will have the capacity to operate many more routes." He added that (TGR) "had a strong cash flow and the vast majority of our shareholders' initial investment remains underutilized."

(TGR) took delivery of its sixth A320.

(TGR) inaugurated service into China from Singapore. Guangzhou started on April 25th, Haikou on April 26th and Shenzhen on April 27th, all with A320s.

A320-232 (2728, 9V-TAF), delivery.

June 2006: Tiger Airways (TGR) announced an increase in frequency on 2 routes to China and 1 to Thailand, that will be in effect for the summer season from July 1st through October 28th as follows from Singapore to:
Guangzhou = Increases from 3 to 5 flights a week;
Haikou = Increases from 4 to 7 flights a week;
Phuket = Increases from 7 to 9 flights a week.

July 2006: Tiger Airways (TGR) is a low-cost carrier (LCC) subsidiary of Singapore Airlines (SIA) operating to regional destinations within a 4 hour range of Singapore.

(IATA) Code: TR. (ICAO) Code: TGW (Callsign - STRIPE).

( (

Parent organization/shareholders: Singapore Airlines (SIA) (49%); Indigo Partners (24%); Irelandia Investments (16%); & Temasek Holdings (11%).

International, scheduled destinations: Bangkok; Chiang Mai; Da Nang; Darwin; Hanoi; Hat Yai; Ho Chi Minh City; Krabi; Luzon Island; Macau; Padang; & Phuket.

(TGR) will increase the number of flights it operates to Thailand as follows from Singapore to:
Bangkok = +3 flights a week from August 19th;
Hat Yai = +2 flights a week from August 14th;
Krabi = +2 flights a week from August 14th.

(TGR) upped service from Singapore to China and Thailand for the summer season ending October 28, increasing Haikou flights to daily from four-times-weekly, Guangzhou service to five-times-weekly from three, and Phuket service from daily to nine-times-weekly.

(TGR) has recorded a +81% lift in passenger volume since moving to the Budget Terminal at Singapore Changi four months ago. Since then, 400,000 passengers have traveled with (TGR), load factor has leapt +21 points and capacity has doubled to six A320s. Next month, the airline will operate almost 200 flights per week from the terminal. It plans to add +three more A320s this year and a further three next year.

GATX Air (GAX) acquired two new A320s from (TGR) to be leased back to the (LCC) for 12 years following delivery in October 2006 and November 2007.

September 2006: Tiger Airways (TGR) is giving passengers the option of paying $10 extra to increase their luggage allowance from 15 kg to 20 kg on roundtrip flights.

(TGR) announced a significant expansion for the winter schedule starting October 29, when it will add a 12th weekly flight to Hatyai, increase frequency to Krabi to eight-times-weekly from five, and raise Macau frequency to 10-times-weekly from seven. From December 1, (TGR) will boost Phuket and Bangkok frequencies to 21-times-weekly from 14.

(TGR) received a five-year permit from the Philippine Civil Aeronautics Board to operate international services to the country.

October 2006: Tiger Airways (TGR) ordered eight more A320s, which will build its fleet to 20 by 2010. The $500 million deal was signed and the first four airplanes will be delivered in 2008, with the balance in the following two years. (TGR) has seven A320s in service, with two more arriving this year, and three in 2007. CEO, Tony Davis told reporters that passenger numbers increased by more than >70% in the first six months of the current fiscal year. The Low Cost Carrier (LCC) serves 15 cities in seven countries.

A320-232 (2906, 9V-TAG), delivery.

November 2006: Tiger Airlines (TGR) said it has chosen International Aero Engines (IAE) (V2500-A5)s to power the eight A320s it ordered last month. Pratt & Whitney (P&W), one of four partners in the (IAE) consortium, said its share of the (TGR) order is worth more than $100 million. The engine order is accompanied by a long-term (V2500) Select aftermarket agreement, that will be extended to cover the Singapore carrier's existing fleet of eight A320s, which also are powered by (V2500)s.

"We operate in a highly competitive environment and the (V2500)'s in-service reliability and superior fuel efficiency, have made a significant contribution to the success of our operation," (TGR) CEO, Tony Davies said.

"(TGR) has quickly become one of Asia's leading low-cost carriers (LCC) and we are proud to be a part of their growth," Pratt & Whitney (P&W) Commercial Engines President, Todd Kallman said.

The (V2500-A5) is available in seven different thrust settings ranging from 22,000 to 33,000 lb.

A320-232 (2952, 9V-TAH), delivery.

December 2006: A320-232 (2982, 9V-TAI), delivery.

January 2007: Tiger Airways (TGR) secured a $100 million loan facility to finance pre-delivery deposits for eight new A320s on order. The facility was arranged and underwritten by BNP Paribas. Deliveries are scheduled for 2008 - 2010.

Singapore Changi airport posted record traffic in 2006 with 35.03 million passengers, up +8%, and 1.9 million tonnes of cargo, up +4.2%.

February 2007: Qantas (QAN) scotched rumors that it is contemplating cutting its investment in Singapore-based Jetstar Asia Airways (JSA). Qantas (QAN) CFO, and Jetstar Asia (JSA), Chairman, Peter Gregg said in a statement that "Jetstar Asia (JSA) is, and will continue to be, an important part of the Qantas (QAN) Group's diversification strategy." Local press reports have expressed concerns over the airline's future, following a number of operational cancellations and claims regarding pilot (FC) shortages. Qantas (QAN)'s rejection of those rumors comes as speculation mounts that JetStar Asia (JSA)competitor Tiger Airways (TGR) is looking at launching domestic operations in Australia (Tiger Australia (TAU)), in conjunction with Perth-based regional Skywest Airlines (SKD). (TGR) CEO, Tony Davis joined the Skywest (SKD) board last year.

Just one day after reporting a thumping profit, Qantas (QAN) was brought back to earth, when Singapore's (TGR) unveiled plans to launch Australian domestic services by year end, with five new A320s operating as Tiger Australia (TAU).

During the announcement, Tiger (TGR) President & CEO, Tony Davis took a cheeky swipe at Qantas (QAN), saying his airline is ready to "deliver Australians genuine low fares, competing in a market which has returned to a cozy duopoly and seen fares increase."

Australians actually enjoy some of the world's cheapest airfares, with transcontinental fares from A$189/$147 on Jetstar Airways (IMU) or A$219 on Qantas (QAN) with full service. But there is a twist. While Qantas (QAN) and Virgin Blue (VOZ) serve all major trunk routes, JetStar (IMU) connects secondary airports with major cities. Tiger Australia (TAU) intends to bring its fares, which are similar to or lower than Jetstar (IMU)'s, to major trunk routes.

Davis claimed that "Unlike others in this market, we won't be a low-cost carrier (LCC) selling high fares. We'll be low cost and very low fare." Tiger (TGR) will launch Singapore - Perth service next month, and has been flying to Darwin for some time. Davis outlined his carrier's plans to federal ministers last week, started the process to obtain an Australian Air Operator's Certificate (AOC) for (Tiger Australia (TAU) and has filed with Australia's Foreign Investment Review Board. Contrary to most countries, Australia allows 100% foreign-owned airlines to operate domestically if it is in the national interest.

The move by (TGR) has been expected, as Qantas (QAN) is the largest shareholder in Singapore-based Jetstar Asia Airways (JSA), (TGR)'s biggest rival. (TGR)'s major stakeholder is Singapore Airlines (SIA). The Center for Asia Pacific Aviation, Executive Chairman, Peter Harbison said he "sees Tiger Australia (TAU) more focused on a direct attack on the local market, rather than providing support to the Singapore flag carrier. But (SIA) would not weep over any adverse economic impact on one of its major rivals."

Davis is on the board of Perth-based, regional Skywest Airlines (SKD), but it is not clear what cooperation will evolve between the two airlines.

March 2007: Tiger Airways (TGR) will launch four-times-weekly Singapore (SIN) - Perth flights on March 23, becoming daily on May 1. It also will increase (SIN) - Shenzhen service to five-times-weekly from three, and (SIN) - Guangzhou flights to daily from five-times-weekly on March 25.

(TGR) was given the green light by Australia's Foreign Investment Review Board (FIRB) to proceed with the creation of Tiger Australia (TAU)). (TGR) said the (FIRB) found that "the creation of Tiger Australia (TAU) was consistent with the government's foreign investment policy and did not place any specific conditions on the creation of the new airline." (TAU) now will now work toward securing its Air Operators Certificate (AOC).

(TGR) CEO, Tony Davis said he was "very encouraged by the support received from so many communities across the country," adding that Tiger Australia (TAU) is in the final stages of negotiation with a number of Australian airports for the location of its principal operating base. Brisbane, Melbourne and Adelaide are front runners.

April 2007: Menzies Aviation is the handling agent for Tiger Airways (TGR)'s new operation in Perth, Tiger Australia (TAU).

May 2007: New entrants in Australia and New Zealand, including Tiger Airways (TGR)'s foray into the market as Tiger Australia (TAU), are triggering a wave of deep discounting, according to the Sydney-based, Centre for Asia Pacific Aviation (CAPA). Qantas (QAN) subsidiary, Jetstar Airways (IMU), which celebrated its third anniversary, had 130,000 seats for sale with companion fares as low as A$2.50/$2.06 on many domestic, transTasman and international routes. The sale was designed to head off (TGR)'s announcement of its choice of Melbourne Airport as its Tiger Australia (TAU) base. Virgin Blue (VOZ) retaliated with a -25% cut of its discount fares, while Qantas (QAN) also launched a five-day domestic sale. (CAPA) said the frenzy will cross the Tasman to New Zealand with confirmation that "Kiwijet," a new Low Cost Carrier (LCC) based on Southwest Airlines (SWA)'s business model, plans to take to the skies late this year.

June 2007: Tiger Airways (TGR) received final approval from Indian authorities to operate commercial flights from Singapore to Chennai, Cochin, Goa, Trivandrum, Kolkata and Kozhikode, the Low Cost Carrier (LCC) announced. It said it will announce a schedule "fairly soon" and expects to link its Indian services to its new operation in Australia (Tiger Australia (TAU)).

Tiger Australia (TAU)'s impending entry into the Australian market is altering the dynamics of the country's route structure. Recently, Qantas (QAN) low-cost subsidiary Jetstar Airways (IMU) announced plans to operate on the major Sydney - Brisbane route from December. The move represents a departure from the convention of not linking major capital city airports, a policy that protected (QAN) from direct competition. Tiger (TAU)'s entry later this year onto major routes, plus the mammoth expansion solidified with an order for 50 additional A320s announced at the Paris Air Show, has changed the playing field. While Jetstar (IMU) flies midday, it now is likely that (QAN) will alter the schedule to fend off Tiger (TAU). Jetstar (IMU) also is expected to begin serving Melbourne Tullamarine' it currently operates out of Avalon.

Tiger Australia (TAU) fired the first shots in what is expected to be one of the toughest domestic fare wars yet seen in Australia. Its opening fare of A$80/$67.29 between Darwin, one of its two current entry points, and its domestic base of Melbourne is one-third the typical fare. The cities are 3,151 km apart. Jetstar Airways (IMU) responded immediately with a A$79 offering.

July 2007: The Australian domestic market is heading for intense price competition as Singapore-based Tiger Airways (TGR) announced more domestic routes and fares for its Australian Tiger Australia (TAU) launch in late November. Tiger (TAU)'s latest route announcement is Melbourne - Launceston with fares starting at A$39.99/$34.87. Its Australian operation will be based in Melbourne, and destinations include Perth, Mackay, Rockhampton, Alice Springs and Darwin. Qantas (QAN) low-cost subsidiary Jetstar Airways (IMU) bettered the Launceston fare with a A$29 offering. However, it has yet to match Tiger (TAU)'s Melbourne - Perth fare of A$59.95 recently announced. Jetstar (IMU)'s best fare for that 4-hour transcontinental journey is A$99, inclusive of all charges and taxes. Tiger (TAU) plans to launch its Australian service on November 23, with all announced destinations in operation by December 1.

August 2007: Tiger Airways (TGR) chose the (V2500) for its recently ordered A320s. The order for engines for the 50 A320s plus (V2500) Select aftermarket agreements is worth S$1.3 billion. Tiger (TGR)ordered 30 A320s and took options on 20 at the Paris Air Show in June. The airplanes will underpin its aggressive expansion into the Australian domestic market from November and the Singapore - India market from October.

September 2007: The Singapore and Malaysia governments stated that unlimited access to the Singapore - Kuala Lumpur route, which a number of carriers have expressed interest in operating, will not be allowed until at least the end of 2008.

October 2007: Tiger Australia (TAU) opened its new terminal at Melbourne Tullamarine (MEL) in addition to initiating a fare war, with transcontinental routes such as (MEL) - Perth, going on sale for A$39.95/$35.90 and flights from (MEL) to Gold Coast, running at A$19.95. CEO, Tony Davis told media in Melbourne, that 15,000 seats will be available at those fare levels. Tiger Australia (TAU) will launch domestic services next month in Australia with five A320s.

Kuala Lumpur - Singapore service is set to see a major price war erupt after the Malaysian government decided to abandon its protection of the route and several others, well ahead of the originally scheduled January 2009 date. Malaysia Airlines (MAS) CEO, Idris Jala said, "Whilst we are all for fair competition, and we believe in the concept of open skies, we are disappointed that the Kuala Lumpur - Singapore route will be prematurely opened to limited flights." He added, "We needed time to put Malaysia Airlines (MAS) strongly on the path of growth, as we are working on a number of major initiatives to ensure sustained profitability. We will now need to fast-track these plans."

The Centre for Asia Pacific Aviation said it expects traffic to treble in just three years, as AirAsia (ASW), Jetstar Asia (JSA), and Tiger Airways (TGR) enter the route as early as December. The Singapore government is expected to rubber stamp Malaysia's change of heart on liberalization, which also includes routes between Singapore and Penang, Kuching and Kota Kinabalu.

Tiger Airways (TGR) confirmed its Paris Air Show order for 30 A320s plus 20 options. The Low Cost Carrier (LCC) currently operates nine A320s, with 11 scheduled for delivery by 2010. (TGR) announced in August that it had selected the (V2500) engine. The airplanes will seat 180Y. "(TGR) is expected to enjoy impressive growth from our Singapore international and Australian domestic networks as Tiger Australia (TAU), and we are expanding our airplane fleet to meet continued strong demand for affordable air travel across the Asia Pacific region," CEO, Tony Davis said. Tiger (TAU) is planning to launch its Australian domestic service this fall.

A320-232 (3275, VH-VNC), delivery, for Tiger Australia (TAU) operations.

November 2007: Singapore-based Tiger Airways (TGR) and Incheon city authorities inked a deal to establish a new Korean low cost carrier (LCC) called "Incheon Tiger Airways" with an initial fleet of five A320s based at Incheon International. The carrier will serve the China and Japan markets. No launch date was provided.

Tiger Australia (TAU) is upping the ante down under, ahead of the late-November launch of flights from its new Australian base in Melbourne, placing 40,000 tickets on sale from A$9.95/$9.13 inclusive of taxes and charges and announcing Newcastle, Canberra, and Hobart as new destinations.

Tiger (TGR) launched Singapore - Chennai service and will begin flying to Xiamen, its fifth Chinese destination.

Tiger Australia (TAU) took to Australian skies on schedule with its first flights from Melbourne to Gold Coast, Rockhampton and MacKay in Queensland after being awarded its Air Operator's Certificate (AOC) two days earlier. Plans to operate to Alice Springs from December 1 have been grounded after a breakdown in ground handling arrangements with Qantas (QAN). The service now will start on March 1.

A320-232 (3296, VH-VND), delivery, for Tiger Australia (TAU) operations.

December 2007: Tiger Airways (TGR) has flown into the black, while claiming to have the second-lowest unit costs in the world. Tiger (TGR) CEO, Tony Davis, who has been tight-lipped on the airline's profit performance, said: "We have been cash flow positive for two years and profitable for the last two quarters." He also declared that (TGR) now "has the world's second-lowest (ASK) capacity costs" behind AirAsia (ASW) and issued a warning to Australia's Jetstar Airways (IMU): "We are reducing our costs all the time."
While Davis declined to provide a figure, Jetstar (IMU)'s unit cost, excluding fuel, fell -7.4% last fiscal year, to 5.49 Australian cents/4.8 US cents. AirAsia (ASW) boasts (CASK), excluding fuel, of 1.56 USA cents.

Regarding (TGR)'s recently launched Australian domestic operation, Tiger Australia (TAU), Davis said that "forward sales are significantly ahead of budget, and we are pleasantly surprised by the level of demand."

The Singapore Ministry of Transport announced that Tiger Airways (TGR) and Jetstar Asia Airways (JSA) each were awarded the right to operate up to four daily Singapore - Kuala Lumpur flights from February 1.

(TGR) converted 20 A320 options, completing the firming of its 50-airplane order (30 firm and 20 options), announced at the Paris Air Show. The airplanes will seat 180 passengers in an all-economy (Y) configuration. (TGR) currently flies 12 A320s and will take eight more through 2009. The final airplane now will be delivered in 2016. International Aero Engines (IAE) announced that (TGR) chose its (V2500) to power 20 A320 family airplanes on order. All engines will be of the "SelectOne" build standard, and will be backed by a long-term "(V2500) Select" agreement. (IAE) valued the order plus support at $580 million.

February 2008: The Civil Aviation Authority of Singapore will spend S$500 million upgrading Singapore Changi Airport (SIN)'s 27-year old, Terminal 1. Work will start in May, and be completed by 2011. The upgrade will reflect features of the newly opened Terminal 3.

The Civil Aviation Authority of Singapore (CAAS), which is responsible for Changi Airport (SIN), has awarded Thales (THL) a contract worth more than >S$300 million/$209 million to provide a customised Air Traffic Control (ATC) system.

March 2008: Tiger Airways (TGR) will increase services to regional Australia to take on Virgin Blue (VOZ)'s new EMB-jets and QantasLink (NJS)'s DHC-8-Q400s and 717s. Speaking at the National Aviation Press Club in Sydney, (TGR) CEO, Tony Davis told media that "destinations like Tamworth [in regional New South Wales] have seen the cost of airfares increase and their citizens are desperate for the low-cost revolution to arrive." He said the cheapest flight from Tamworth to Melbourne [Tiger's base] is on Qantas (QAN) at A$356/$332 and involves a Sydney stop. (TGR) plans to use 144-seat A319s for its regional push, and the airplanes also will spearhead a move across the Tasman to New Zealand later in the year. Davis sees the A319 as perfectly sized, with 20 regional airports able to handle it and another 20 requiring just a slight lengthening of their runways. He added that (TGR) has 50 A320s on order up to 2016 and a substantial number could be switched to A319s, with a fleet of up to 30 airplanes eventually based in Australia. Its initial fleet plan involved five A320s, with the fifth arriving next month, serving 13 destinations, and his speech offered early insight into the airline's growth plans. As it did last year, (TGR) will invite Australians to vote online for their preferred regional destination as it attempts to gauge demand. Davis expects to announce a second Australian base within three months and told media that the airline plans five operating bases in the country over the next seven years. For the New Zealand market, it is eyeing Palmerston North.

The Civil Aviation Authority of Singapore (CAAS) announced a S$10 million/$7.2 million expansion project at Changi Airport's Budget Terminal scheduled to begin in July. The seven-gate facility, which opened in March 2006 and caters to Low Cost Carrier (LCC)s, will be enlarged to 28,700 sq m from 25,000 and boost annual passenger capacity to 7 million from 2.7 million. The (CAAS) said approximately 1.8 million passengers used the terminal in 2007. Tiger Airways (TGR) and Cebu Pacific Air (CEB) operated 248 flights last month to 20 destinations. Work will include the addition of seven new check-in counters, three passenger gates and new baggage handling equipment. It is scheduled to be finished in early 2009.

April 2008: Tiger Airways (TGR) CEO, Tony Davis told reporters that it will be looking to grow through a merger or acquisition and that it has set aside approximately $17 million for that purpose, "Reuters" reported. He added that "an Initial Public Offering (IPO) will occur when all the circumstances are aligned, and when we have a need for funds to be injected, but not right now." Davis said he was in talks with six Asian parties regarding potential partnerships or acquisitions, according to the news service.

Asiana Airlines (AAR) has bought into planned new airline, Busan International Air (BIA), in another sign that South Korea may emerge as a major market for low cost carrier (LCC) operations. Asiana (AAR) paid 23 billion won/$24 million for a 46% stake. Busan International (BIA) is one of several new carriers planned in South Korea. Korean Air (KAL) plans to establish late this year "Air Korea" as a new low cost carrier (LCC) subsidiary, while (TGR) plans to launch next year, an associate airline in South Korea in partnership with the Incheon government.

May 2008: Tiger Airways (TGR) enjoyed a +81.6% increase in revenue for the fiscal year ended March 31 on a +50% rise in passengers to 2.3 million. Full-year capacity climbed +39.6% and load factor rose +8 points. Full results will be released following a formal audit. It said it "anticipates a strong financial performance." It currently operates 12 A320 family airplanes and said it is bringing forward some deliveries "in response to the strong demand for its low-fare flight services." It issued a Request for Proposal (RFP) to raise $225 million in engine and airplane financing for four A320s.

August 2008: Tiger Airways (TGR) reported a net profit of +S$37.8 million/+$27.3 million for the year ended March 31, according to "Reuters." The previous year, the airline posted a loss of -S$14.30 million. Revenue increased +56% year-over-year to $S271 million. (TGR), which launched in 2004 and also operates an Australian subsidiary (TAU) based in Melbourne, said passenger numbers rose +73.7% during the fiscal first quarter ended June 30. It will base two A319s at Adelaide early next year for (TAU).

(TAU) is withdrawing from Darwin.

September 2008: Tiger Airways (TGR) is boosting flights to Thailand as other Low Cost Carrier (LCC)s cut capacity or disappear.

AirAsia (ASW) CEO, Tony Fernandes said the airline is "much closer to achieving our dreams of boosting the growth of Kuala Lumpur (KUL) as the low-cost hub in Asia" as (ASW) announced the addition of four additional daily, (KUL) - Singapore (SIN) flights beginning December 1. At that point, it will operate the route, six-times-daily, as its staged liberalization, which started in February, continues. Fernandes said that the current double-daily service has achieved a 90% LF load factor, and continuing his warning to competitors, he said AirAsia (ASW) is "more importantly preparing Malaysia as the global hub for low-cost travel in the region."

The Centre for Asia Pacific Aviation (CAPA) said the (KUL) - (SIN) route is expected to be one of the fastest-growing in the world next year, and that Low Cost Carrier (LCC)s from both sides will "rush to take advantage of market liberalization."

In a report, (CAPA) said opening of the route "is merely a curtain raiser for the opening of the ASEAN capital cities liberalization initiative from January, which promises to unleash the next round of route development and traffic growth in the region." Airlines from 10 member countries will be permitted to operate unlimited frequencies between capital cities within the grouping, as a "preliminary step" toward ASEAN "open skies" by 2015.

Tiger Airways (TGR) and Jetstar Asia (JSA) have announced their own plans to increase (KUL) - (SIN) service significantly.

October 2008: Jetstar Airways (IMU)'s new CEO, Bruce Buchanan, downplayed the impact of Tiger Airways (TGR) in the Australasian market (as Tiger Australia (TAU)), saying that his focus is on "bigger [low-cost] competitors with large fleets, that have a significant impact on the market. There is only one or two in the Asian region and I don't put Tiger (TGR)/(TAU) in that category."

Virgin Blue (VOZ) operates more than >50 airplanes and has local market presence, while Kuala Lumpur-based AirAsia (ASW) has 70 airplanes and has been frank about its ambitions.

Tiger Australia (TAU) currently operates just five airplanes in Australia, but last year, (TGR) ordered 50 A320s for Asian operations. It has been coy on where they will be deployed, but short-term Australian plans indicate a fleet of eight airplanes. "We do take them seriously and we welcome competition. It's good for the economy and it's healthy for us - - keeps us nimble," Buchanan said.

Jetstar (IMU)'s fleet comprises 31 A320 family airplanes with 68 more deliveries planned through 2013. It now serves 20 Australian destinations and 29 internationally from Australia, and hubs in Singapore and Hanoi. Buchanan said it is "well placed to sustainably put more low fares into the marketplace." Passenger numbers in the year ended June 30 rose +32.3% year-over-year to 5.8 million, while (RPK)s traffic soared +47.5% to 6.41 billion, with load factor at 71% LF.

November 2008: A320-232 delivery. Has 4 A320s based in Australia.

December 2008: Tiger Airways (TGR) and Tiger Australia (TAU) parent, Tiger Aviation posted a +S$9.9 million/+$6.5 million profit in the fiscal year ended March 31, the Centre for Asia Pacific Aviation reported. The result compares to a -S$24.7 million loss the previous year. The Singapore-based mainline reported a +S$37.8 million profit, while the new Australian subsidiary posted a -A$12.2 million/-$8 million operating loss.

January 2009: Tiger Airways (TGR) scrapped its plan to launch a low-cost airline at South Korea's Incheon International, which announced a delay to the project last summer. (TGR) (49%) and the Incheon city government (51%) cited "the global economic situation" and "continued regulatory uncertainty in Korea," according to press reports.

A319-132 (3757, 9V-TRA), CIT Group (TCI) leased.

February 2009: Singapore visitor arrivals were down -13% in January.

The Civil Aviation Authority of Singapore will distribute S$200 million/$132.5 million this year "to help airlines and airport partners tide over the current economic downturn," comprising S$50 million in rental rebates, a S$20 million fund for concessionaires at Changi and a S$130 million Air Hub Development Fund "extended to airlines and airport partners."

A319-132 (3801, 9V-TRB), CIT Group (TCI) leased.

March 2009: Tiger Airways (TGR), which recently took delivery of its second A319 (it normally flies A320s), will launch daily, Singapore - Jakarta service on March 29. That’s a couple of days after AirAsia (ASW)’s Indonesian affiliate, AirAsia Indonesia (AWR) does the same.

April 2009: CIT Aerospace (TCI) announced the delivery of one (IAE) (V2524-A5)-powered A319 to Tiger Airways (TGR).

September 2009: ST Aerospace announced that its commercial pilot (FC) training operation ST Aviation Training Academy (STATA) has partnered with Tiger Airways (TGR) for A320 pilot (FC) training under (STATA)'s Multi-crew Pilot License (MPL) curriculum.

(STATA) was created by ST Aerospace two years ago to respond to projected demand for significant numbers of new pilots (FC) in the Asia/Pacific region over the next 20 years.

The (MPL) program with Tiger (TGR) will launch with six cadet pilots (FC) and last approximately two years, (STATA) said. Students will undergo ground school in Singapore and flight training in Ballarat, Australia, before returning to Singapore for flight training in a multicrew environment. Last year, an Australian subsidiary of (STATA) acquired the Bruce Hartwig Flying School.

(STATA) said that upon program completion it will "validate the trial in close collaboration with major industry players [including] national aviation authorities, educational institutions, simulation experts and renowned aviation professionals." The six students are expected to graduate together and will receive an (MPL) issued by the Civil Aviation Authority of Singapore (CAAS).

On successful completion of the course, (TGR) will provide the selected trainees with "Conditional Contracts of Employment, subject to the (MPL) license that will be issued by (CAAS), the trainees meeting (TGR)'s stringent flying standards and the prevalent pilot (FC) requirement of (TGR)."

October 2009: Tiger Airways (TGR) continues to expand within Australia, announcing new flights between Sydney and the Gold Coast starting in December.

A320-232 (4053, 9V-TAL), delivery.

November 2009: GECAS) (GEF) delivered one new A320-200 to Tiger Airways (TGR) as part of sale/leaseback deal.

December 2009: Tiger Airways (TGR) parent Tiger Aviation suffered a -S$50.8 million/-$36.5 million loss in its fiscal year ended March 31, reversed from a +S$9.9 million profit in 2007 to 2008, according to a recent company statement cited by press reports. Revenue rose +24.3% to S$378 million.

(TGR) filed preliminary paperwork seeking a listing on the Singapore Exchange, although investors Singapore Airlines (49%) and Temasek Holdings subsidiary Dahlia Investments (11%) will not sell their shares as part of the planned Initial Public Offering (IPO), according to the filing. "Reuters" reported that Indigo Partners (24%) will divest some of its stake and RyanAsia will reduce its share if an over-allotment option is triggered. "We intend to use our net proceeds from the offering to fund the equity portion of our planned acquisition of A320 airplanes and the associated airplanes pre-delivery payments; to establish potential new airline and/or operating bases; to repay all outstanding short-term loans which have been used to finance our airplane pre-delivery payments, and for working capital," (TGR) said. (TGR) lost -S$8.3 million/-$5.9 million in its fiscal first half ended September 30, narrowed from a -$24.2 million deficit in the year-ago period, according to "The Business Times." Revenue rose +12.4% to $206.1 million.

Next month, (TGR) starts flights from Singapore to Hong Kong. In March, (TGR) will start Sydney - Gold Coast, plus three new routes from Brisbane to Adelaide, Melbourne and Rockhampton.

January 2010: Tiger Airways (TGR) is striving to raise S$273 million/$195.7 million in an initial public offering (IPO) that values its shares at S$1.35 to S$1.65. (TGR) plans to sell 165 million shares, approximately 30% of its final register, and the funds would be used to expand operations and pay off loans. Analysts have suggested the valuation is optimistic given that it is nearly 14 times the carrier's 2010 to 2011 forecast earnings. (TGR) posted a net loss of -S$51 million in the fiscal year ended March 31, 2009, and a -S$8.3 million deficit in the fiscal semester ended September 30, 2009.

(TGR) later took a bold gamble and ignored the less-than-enthusiastic endorsement of its (IPO) from regional analysts to price it at the maximum S$1.65/$1.19 per share. The potential S$246.8 million raised from the (IPO) will be used to pay down debt and finance new airplanes. The offering comprises 155.6 million new shares and an additional 9.6 million from investor Indigo Partners. The shares are expected to begin trading on January 22. Tiger (TGR) hopes the (IPO) will be the catalyst for growth, as rivals Jetstar Airways (IMU)/(JSA) and AirAsia (ASW) now are many times larger than (TGR). Jetstar (IMU)/(JSA) and (ASW) signed a joint venture two weeks ago to partner on operations and backroom functions.

Tiger Airways Holdings defied analysts' skepticism and raised S$247.7 million/$178.2 million through its (IPO), of which about S$233.3 million will go to (TGR) to fund its expansion. Its market capitalization will be S$780 million when it lists on the Singapore Exchange on January 22. CEO, Tony Davis told media in Singapore that the "significant demand for shares from investors is a strong vote of confidence in our low-cost business model," adding, "We aim to continue growing our airlines in Singapore and Australia as well as establishing new airlines in additional markets in Asia." (TGR) launched service in September 2004 and started its Australian operation in November 2007. It now serves 33 destinations in 11 countries and plans to grow its fleet from the current 17 airplanes to 68 by 2015.

(TGR) brought forward the delivery of five A320s to 2010 to 2011 from 2016, it said in a statement cited by press reports from Singapore. It currently operates 17 A320 family airplanes.

A320-232 (4181, 9V-TAM), delivery.

February 2010: Tiger Airways (TGR) and Tiger Australia (TAU) parent, Tiger Aviation Group posted a net profit of +S$14.1 million in the fiscal third quarter ended December 31, reversed from a -S$7.9 million loss in the year-ago period. Third-quarter operating profit was +S$23.5 million, boosted by a +29% year-over-year increase in revenue to S$139.5 million. President & CEO, Tony Davis said the turnaround was "driven by traffic growth across both our airlines, increasing ancillary revenues and a focus on cost containment." Unit cost fell -16% and (CASK) excluding fuel, was cut 4%. "With this result, our year-to-date underlying operating profit, excluding fuel hedging losses of -S$22.2 million and (IPO)-related expenses of S$7.6 million, was S$36.6 million, a S$68 million turnaround from the previous financial year," Davis said. Load factor rose +4.6 points to 87.6% LF on a +23.3% lift in capacity to 1.96 billion (ASK)s.

(TGR) took delivery of its 19th airplane, an A320 that is the second of two purchased directly from Airbus. It leases its remaining fleet and currently serves 33 airports. (TGR) said it is "exploring the feasibility" of expanding its Indian service and mentioned Trivandrum, Kochi and Trichy as potential destinations. (TGR) currently flies from Singapore to Chennai and Bangalore.

A320-232 (4210, 9V-TAN), delivery.

March 2010: Tiger Airways (TGR) named bmibaby (BMI) Managing Director, Crawford Rix as Managing Director of Tiger Airways Australia (TAU).


May 2010: Tiger Airways (TGR) reported net income of +S$28.2 million/+$37.7 million for its fiscal year ended March 31, reversed from a -S$50.8 million net loss in the prior year.

Underlying operating profit, which excludes fuel-hedging losses of -S$21.7 million and Initial Public Offering (IPO)-related expenses, was +S$49.7 million, turned around from a -S$30.2 million operating deficit in the previous year. Revenue lifted +28.6% to S$486.2 million.

President & CEO, Tony Davis said, "No matter how you cut the numbers, these are great results for Tiger Airways (TGR). Our Singapore cub recorded its third year of operating profit and our [Tiger Airways Australia (TAU)] cub has recorded a break even operating result in its second full year of operation, a fantastic achievement.”

The airline recorded a +53.8% increase in passengers carried to 4.82 million for the fiscal year, while (RPK)s grew +29% to 4.87 billion and (ASK)s increased +21.5% to 7.84 billion. Load factor jumped +5.7 points to 85.1% LF.

Davis told media that Tiger (TGR) "clearly succeeded with our pure low-cost model: Growing profits by relentlessly reducing costs and offering the lowest fares possible." It will add another seven A320s in its current fiscal year.

June 2010: Honeywell (SGC) signed a contract with Tiger Airways (TGR) to provide a full suite of safety avionics including its IntuVue 3-D weather radar for (TGR)'s 50 new A319/A320s. The airplanes are expected to be delivered starting in late 2010 and continuing through 2015. Honeywell (SGC)'s full suite will include an Air Data Inertial Reference Unit, Flight Management System, next-generation Aircraft Collision & Avoidance System, Flight Data Recorder, Cockpit Voice Recorder and Enhanced Ground Proximity Warning System.

July 2010: Tiger Airways (TGR) will expand capacity out of Singapore with the launch of a new route to Taipei in January 2011 and more
flights to other destinations in Northeast Asia. From October 2010, additional flights will be operated to Guangzhou, Hong Kong, Shenzhen, and Macau. The expansion will be supported by an increase in Tiger (TGR)'s Singapore-based fleet from 10 airplanes now to 14 by December.

Tiger Airways (TGR) is a low-cost carrier (LCC) subsidiary of Singapore Airlines (SIA) operating scheduled jet airplane services to over a dozen cities in Australia, China, Indonesia, the Philippines, Singapore, Thailand, and Vietnam.

(IATA) Code: TR. (ICAO) Code: TGW - (Callsign - STRIPE).

Parent organization/shareholders: Tiger Aviation (100%).

Main Base: Singapore Changi airport (SIN).

International, scheduled destinations: Bangkok; Chiang Mai; Da Nang; Darwin; Guangzhou; Hanoi; Hat Yai; Ho Chi Minh City; Hong Kong; Krabi; Luzon Island; Macau; Padang; Phuket; and Shenzhen.

Tiger Airways (TGR) will increase daily, Jakarta - Singapore service to twice-daily in "late 2010," it said. (TGR) won the right to increase service on the route in the recent distribution of limited traffic rights by Singapore's Air Traffic Rights Committee.

August 2010: Tiger Airways (TGR) has posted a profit of +S$1.9 million/+$1.4 million for the three months to June 30, against a -$6 million loss a year ago. Revenue for Singapore and Australian operations jumped +45% from $100.1 million to $145.1 million, with a +39% increase in passenger traffic. This outstripped capacity growth of +36.9%, and took load factor to 84.2% LF, +1.3% points higher than a year before.

The Thai Airways International (TII) Public Company and Tiger Airways (TGR) Holdings announced that they will jointly launch a new low-fare airline venture, to be called "Thai Tiger Airways (TTG)", to offer service from Bangkok to domestic and international routes.

It is due to start service in the first quarter of 2011, will operate out of Suvarnabhumi International and offer short-haul, point-to-point services within a 5-hour flying radius. Thai (TII) and an unnamed "Thai entity" will collectively own 51% of Thai Tiger Airways (TTG), while Tiger Airways (TGR) will own 49%. It will most directly face off against AirAsia Thailand (THA), which carried nearly 5 million passengers last year, up +23% over 2008, with a fleet of 20 A320s and 737s.

The joint venture airline raises the bar in low-cost competition in Asia, according to Sydney-based Centre for Asia Pacific Aviation (CAPA). “This could have a major impact on the pace of airline liberalization in the region,” (CAPA) said in a statement. Until now, the Thai government has been highly protective of its national flag carrier (TII) and has been an impediment to the region’s multilateral timetable for moving toward open skies for Southeast Asian airlines.

“This position could now soften, as high-cost Thai Airways (TII) will have the opportunity to meet competition on a more equal footing,” (CAPA) maintained.

In a statement, (TII) President, Piyasvasti Amranand said the airline was “pleased to partner with Tiger Airways (TGR) in establishing Thailand's newest airline . . . . With its disciplined approach to the low-cost model, (TGR) has proven that it has the right approach to competing effectively in the growing low-fare travel market in Asia.”

Amranand said the move would “allow (TII) to be more competitive in the region with the anticipated growth in the low-cost market as a result of continued (ASEAN) air liberalization policies by 2015, which we expect will lead to growth in air travel in the Asian market. Thai Tiger (TTG) will offer an entirely different line of products to that offered by Thai (TII).”

There could be logistical challenges to setting up the new carrier: According to (CAPA), Thai (TII) and Tiger (TGR) “do not even code share, let alone cooperate in any other way.”

(TGR) nearly formed a joint venture (JV) in the Philippines (not to mention Korea) a few years ago. Plans fell through, but it’s still interested in the market. Recently it hired Philippine travel agency TripleStar as its general sales agent (GSA) for the market.

(TGR) will launch daily, Singapore Changi - Manila (Clark) flights on October 31, increasing to 12-times-weekly on December 1.

Tiger Airways (TGR) will expand its fleet to 26 airplanes by March 2011, seven more than now.

September 2010: A320-232 (4421, 9V-TAO), ex-(F-WWDZ), and A330-232 (4445, 9V-TAP), deliveries.

December 2010: A320-232 (4561, 9V-), ex-(F-WWBB), delivery.

January 2011: Tiger Airways (TGR) which plans to grow seat counts by +40% in Singapore and +20% in Australia during this year’s April - to - October period, managed a +$17 million net profit in calendar 4th quarter (Q4), along with a hearty 15% operating margin. Once again, (TGR) proves that the (ASEAN) region (with its low costs, good geography and lots of tourism) is a great place to run an airline. Using a Ryanair (RYR)-like business model, (TGR) now gets a full 20% of its revenues from ancillary income. Total revenues last quarter grew +21% on +22% (ASK) capacity growth, though total operating costs grew +24%, unsurprisingly driven by fuel outlays (which rose +31%). On the strategic front, (TGR) launched two new routes from Singapore to India, a new Manila Clark - Singapore route operated by partner, SEAir, and a third Australian base at Melbourne Avalon. (TGR) also hopes to launch a joint venture Low Cost Carrier (LCC) with Thai Airways (TII).

(TGR) doesn’t break out its results by market, but it did say that Australian earnings would be hurt by severe floods that hit Brisbane and other areas. It will keep its Australian fleet at ten planes for now. Overall though, (TGR)’s fleet will jump from 25 to 35 in the coming 12 months.

(TGR) began new daily service between Singapore and Taipei, while also boosting frequencies between Singapore and Jakarta to double daily.

February 2011: Tiger Airways (TGR) announced new Sydney flights to the Sunshine Coast starting next month. This month, meanwhile,
marks the start of service on the busy Sydney - Brisbane route. (TGR) also announced more flights from Melbourne Tullamarine to Perth and Alice Springs for this winter season, which runs from April through November, and is currently “scoping out” locations for a fourth Australian base. On the other hand, it recently suspended Adelaide flights to both Brisbane and nearby Gold Coast.

March 2011: Thai Airways International (TII) Public Company and Tiger Airways (TGR) Holdings formally signed a shareholders' agreement to launch Thai Tiger Airways, the low-fare joint venture (JV) carrier the companies announced last summer.

They also said in a joint statement that Ryan Thai will own a 10% stake in Thai Tiger. Ryan Thai will be represented on the Thai Tiger board by Declan Ryan, whose family founded Ryanair (RYR). Thai Airways (TII) will own 49.9% while Tiger Airways (TGR) will hold 39% and individual Thai investors will own 1.1%. The carrier will operate out of Suvarnabhumi International airport and offer short-haul, point-to-point services within a 5-hour flying radius. A start-up date was not announced; the deal still requires regulatory approval.

April 2011: Australia’s Civil Aviation Safety Authority (ACASA) is investigating Tiger Airways Australia (TAU) over “a variety of issues.” Details of (ACASA)’s investigation emerged as (TAU), owing to an unrelated problem, was forced to cancel several flights, disrupting Easter travel plans for hundreds of passengers. Perth services continue as scheduled.

(ACASA) issued a "show cause" notice to (TAU) over a series of concerns related to safety and maintenance, according to insiders who noted the concerns were more related to paperwork and not considered serious.

(ACASA) issues “show cause” notices “where there is not a serious and imminent risk to safety,” according to the regulator, which pointed out the notices “set out the facts and circumstances of the matter . . . and provides the operator with an opportunity to explain their own view of those facts and circumstances."

A (TAU) spokesperson said (TAU) "has responded promptly and in full to (ACASA)'s inquiry . . . Safety underpins (TAU)'s operations at all times and (TAU) continues to operate normally with (ACASA)'s approval," the spokesperson said. (TAU) is partly owned by Singapore Airlines (SIA).

June 2011: Thai Airways International (TII) President, Piyasvasti Amranand believes (TII)'s planned low-cost carrier (LCC) with Tiger Airways (TGR) will still go ahead, despite delays caused by a lack of government approvals.

"The joint venture (JV) with (TGR) has been delayed by bureaucratic red tape . . . but it will not take too long," said Amranand.

The new airline, "Thai Tiger," was initially expected to begin operations by March but has not started flights. Asked if he was optimistic that it will eventually get off the ground, Amranand said: "Governments come and go [in Thailand] . . . Thai Airways (TII) has been here for 50 years whereas the average life of the government has been one or two years."

July 2011: Tiger Airlines (TGR) subsidiary, Tiger Australia (TAU) is grounded by the Australian Civil Aviation Safety Authority (ACASA) over safety issues.

Tiger Airways (TGR) Holdings said former SilkAir (SLK) CEO, Chin Yau Seng would take over as acting CEO to allow the company's head, Tony Davis, to focus on overseeing subsidiary Tiger Airways Australia (TAU)'s recovery from its grounding. Davis said Chin Yau Seng's appointment as CEO of (TAU) is a "tangible demonstration" of the company's "long-term" commitment to Australia. He noted that (TAU) will not contest the extension of its grounding by Australia's Civil Aviation Safety Authority (ACASA) through August 1.

Speaking with the Australian Broadcasting Corporation (ABC), Davis said, "We're doing everything necessary to reassure (CASA) and the public that (TAU) is a safe and viable airline and has an absolute long-term future in Australia. Right now we're undertaking a comprehensive review of the operation, we're making sure that we can assure ourselves that the airline is safe and viable and we're focused on resuming services at the end of the month. So, the process is ongoing."

He emphasized to the (ABC) that Tiger Airways Holdings is "investing significantly in the long-term future of Tiger Australia (TAU). Let's complete the review, let's see what needs to be done and the commitment from the business is what needs to be done will be done."

He added that the grounding, which started July 2, is "costing us in tangible terms about A$2 million/$2.1 million a week, so obviously the fact that we've decided to suspend the services until the end of July means that that's a significant cost."


August 2011: Tiger Airways (TGR) will launch thrice-weekly, Singapore - Davao A320 service on November 1.

Australia’s Civil Aviation Safety Authority (CASA) has lifted the suspension of Tiger Airways Australia (TAU) and the airline will resume services. However, for the month of August (TAU) will be limited to 18 flights a day. Operations initially will be restricted to the Melbourne - Sydney route. Flights to other Australian cities will follow in September, it is understood.

(CASA) said it had set a series of conditions for (TAU) to address “key areas of operational importance,” which “will underpin ongoing improvements in the airline’s safety performance.” These cover pilot (FC) training and proficiency, pilot (FC) rostering and fatigue management, currency and revision of operational manuals and related documents, and improved change-management processes. (CASA) also wants additional qualified personnel in key training and safety oversight positions.

(CASA) Director Aviation Safety, John McCormick said (TAU) had demonstrated it can comply with the conditions on its air operator’s certificate and meet the necessary safety requirements. “On that basis, (CASA) now believes allowing Tiger Airways Australia (TAU) to resume operations is acceptable,” said McCormick. “(TAU) has cooperated with (CASA)’s investigation and is to be credited for a constructive approach.”

However, (CASA) said it will be closely monitoring (TAU) operations through scheduled surveillance and regular spot checks. “We will also be meeting regularly with the airline to review ongoing safety performance and compliance with the conditions on the airline’s operations,” said McCormick. Over the past month, (CASA) has supervised the re-training of all (TAU) pilots (FC).

(TAU) said it would close its crew base at Adelaide and temporarily close its Avalon base. (TAU) resumed ticket sales for the Melbourne - Sydney route and said it will announce details concerning resuming more routes shortly. (TAU) will also reduce its fleet from 10 A320s to eight.

Tiger Airways (TGR) Holdings Ltd appointed acting (CEO), Chin Yau Seng as the airline (TGR)/(TAU)’s permanent (CEO) with effect November 1. Chin, a former Silk Air (SLK) (CEO), been with the Singapore Airlines Group more than >15 years. Chin will succeed Tony Davis, who leaves the airline on November 1st.

September 2011: Tiger Airways Australia (TAU) appointed former (COO) of Virgin Australia (VOZ), Andrew David as (TAU)’s new (CEO), replacing Tony Davis who resigned last month. Davis was formerly CEO of (TAU)’s Singapore-based parent, Tiger Airways (TGR) Holdings, but stepped down in July to get the troubled (TAU) back into the air after it was grounded for almost six weeks owing to safety issues.

(TAU) has now resumed limited services, adding flights to Perth this month. It now services Brisbane, the Gold Coast and Sydney from Melbourne.

David, who was Virgin Blue (VOZ) (COO) for five years until November 2010, left as (VOZ)’s new CEO, John Borghetti restructured (VOZ) into a full-service operation.

Chin Yau Seng, who replaced Davis as (CEO) of Tiger Airways (TGR) Holdings, said that David “brings with him a wealth of experience in the airline business and a proven track record as a leader and manager.”

Thai Airways International (TII) Public Company has scrapped plans to form a joint venture (JV) with Tiger Airways (TGR) Holdings to form Thai Tiger Airways, the low-fare joint venture (JV) carrier the companies announced last year, according to Thai (TII) Chairman, Ampon Kittiampon.

The move, reported by the "Bangkok Post," is a sudden change after Thai (TII) and Tiger (TGR) formally signed a shareholders' agreement in March to launch the airline. (TII) was to own 49.9% while (TGR) would have had 39% ownership with a 10% stake being held by Ryan Thai.

It is not clear if (TGR)’s recent grounding in Australia (TAU) had a bearing on the (TII) decision.

(TII) now plans to launch a wholly owned subsidiary, "Thai Smile" in July 2012.

Tiger Airways (TGR) Holdings announced it would buy a 33% stake in Mandala Airlines (MND), which will be held through Tiger (TGR)’s wholly owned subsidiary, Roar Aviation.

Mandala (MND) is undergoing a financial restructuring after ceasing operations in January. Indonesian investment company, the Saratoga Group will be the largest shareholder in the restructured (MND), with a 51% holding; the remaining 16% will be held by the previous shareholders, Indigo Partners and creditors.

Indigo Partners, which holds 24% of Tiger (TGR), acquired 49% of Mandala (MND) in 2006. In January, (MND)’s President Director, Diono Nurjadin blamed high airplane lease rates as a prime contributor to (MND)’s downfall.

Tiger Airways (TGR) Holdings said it expects to complete the deal in about 90 days after getting regulatory approvals and to restart Mandala (MND) operations soon after.

Tiger Airways (TGR) Holdings acting CEO, Chin Yau Seng said, “We are pleased to have reached agreement for this transaction, and are excited at the prospect of (MND) resuming operations. We will continue to work closely with our business partner in this venture in order to achieve this.”

The restructured (MND) plans to adopt the Tiger Airways (TGR) business model and will offer low-fare travel to international and domestic Indonesian destinations within a 5-hour radius. The restructured (MND) will operate A320s.

October 2011: ST Aerospace Academy has completed Singapore’s first Multi-crew Pilot License (MPL) program for Tiger Airways (TGR). The six cadet pilots (FC) will receive their (MPL) from the Civil Aviation Authority of Singapore this month and are expected to fly the A320 as first officers (FC).

2 A320-232s (4874, 9V-TAY; 4879, 9V-TAZ), ex-(F-WWDY; & F-WWIN), deliveries.

November 2011: Tiger Airways Australia (TAU) has received regulatory approval to operate 32 sectors daily, an increase from the current limit of 22 sectors.

The approval from the Civil Aviation Safety Authority of Australia (CASA) takes immediate effect, said Singapore-based Tiger Airways (TGR) in a stock exchange statement.

With the increase, (TAU) plans to introduce an extra daily service on the Melbourne - Perth, Melbourne - Brisbane and Melbourne - Gold Coast routes. It also intends to add two daily services on the Melbourne - Sydney route.

These new services will be rolled out before Christmas, said a spokesman.

Tiger Airways (TGR) reported a fiscal second-quarter net loss of Singapore dollars -(S$) 49.9 million/-$39 million), down from a net profit of +S$14.1 million a year before.

This was mainly due to the six-week grounding of Tiger Airways Australia (TAU) on safety concerns by (CASA), and the subsequent under-utilisation of its domestic fleet. High fuel costs also contributed to the loss. (TAU) had flown around 60 sectors daily before the suspension.

January 2012: Tiger Airways (TGR) launches flights to Dhaka.

February 2012: Tiger Airways (TGR) will resume daily Melbourne - Cairns service on April 25. (TGR) will launch a four times weekly service between Singapore and Kochi's financial capital of Kerala in southwest India from 27 April. (TGR) will be the first regional low-cost carrier to fly from Singapore to Kochi and presently there are no other airlines operating the route.

March 2012: Tiger Airways (TGR) began flying to its first destination in Bangladesh on 9 March with the introduction of four times weekly (Monday, Wednesday, Friday, Sunday) flights between Singapore (SIN) and Dhaka (DAC). Competition was provided by Biman Bangladesh (BNG), which already connects the two cities six times a week, and Singapore Airlines (SIA), which operates daily flights with an A330-300. Last year, (TGR) (including its Australian subsidiary, (TAU)) flew 5.7 million passengers at an average load factor of 83% LF, almost exactly the same number as in 2010 when the load factor was 86% LF.

April 2012: Mandala Airlines (MND) has resumed operations after undergoing financial restructuring last year.

(MND) launched its first domestic service from Jakarta (JKT) to Medan (MES). Its first international service is expected to begin April 20 from Singapore to (MES), followed by (JKT) - Kuala Lumpur service on May 4, (MND) spokesman, Astriana Ekasari told "The Jakarta Globe."

(MND) was grounded January 13, 2011, due to its large debt. (MND) said it owed creditors IDR800 billion/$87 million, and cited the high cost of leasing airplanes among the reasons for the debt.

Indonesian authorities cleared (MND) to fly again in February after it completed a restructuring process, which included a cash injection by Singapore-based, low cost carrier (LCC) company Tiger Airways (TGR) Holdings, according to the "Globe." Tiger (TGR) now owns 33% of (MND), while Indonesian investment company, the Saratoga Group holds a majority 51.3% stake; the remaining 15.7% is owned by (MND)’s previous shareholders and creditors.

(MND) said it will adopt Tiger (TGR)’s (LCC) model and will use new A320s in its fleet. It will then re-brand its name to "Tiger Airways Indonesia." In a change to its previous role as a domestic Indonesian carrier, (MND) is looking to operate mostly on international routes, industry think tank (CAPA) reported on its website.

(MND) was founded in 1969 and owned by the Indonesian military until 2006 when private investors took over.

May 2012: Tiger Airways (TGR) launched low-cost flights from Singapore in September 2004, initially to just three destinations in Thailand: Bangkok; Hat Yai; and Phuket. Since then, (TGR) has flown, at one time or other from Singapore, to some 40 destinations across Asia with its fleet of 20 180Y-seat A320s. Recently (TGR) resumed flights to Kochi in India, bringing the number of destinations served non-stop by (TGR) from Singapore to 28. This includes Clark (Philippines) and Medan (Indonesia) which are operated respectively by partner airlines SE Air and the recently re-launched Mandala (MND).

(TGR) will increase 3X-weekly, Singapore (SIN) - Haikou service to 5X-weekly August 1 - 31, and will operate 2X-daily, (SIN) service to Kuching and Penang between August 17 - 26.

(TGR) launched flights from Singapore to Kochi and from Melbourne to Cairns.

Unlike most European Low Cost Carrier (LCC)s the average weekly frequency for routes has actually grown over time from less than five flights per week initially, to an average of 12 flights per week last summer. Bangkok with 37 weekly departures and Kuala Lumpur with 30 are by some distance (TGR)’s two busiest routes. A total of 13 different country markets are served by Tiger Airways (TGR) from Singapore this summer.

One notable feature of the network scheduling is that while on Mondays, Fridays, Saturdays and Sundays, (TGR) operates between 80 and 90 daily departures, on Tuesdays and Thursdays this falls to less than <70, and just 59 flights depart on Wednesdays. With a further 36 A320s on order, (TGR) will have the resources to grow as the easing of local bilaterals open up more opportunities.

Singapore Airlines (SIA) is still (TGR)’s biggest single shareholder though its shareholding has reduced from 49% initially to just under 33% at the end of the 2011 financial year. According to official Airline Guide (OAG) data, (SIA) has around a 33% share of seat capacity in Singapore with Silkair (SLK) and Tiger Airways (TGR) both having around 7% each. (SIA) competes directly with (TGR) on 13 of its routes, while Silkair (SLK) competes on several others.

On (TGR)’s busiest route to Bangkok, it faces competition from Jetstar Asia (JSA), Singapore Airlines(SIA), Thai AirAsia (THA), and Thai Airways (TII), while on the Kuala Lumpur route passengers have a choice of AirAsia (ASW), Jetstar Asia (JSA), Malaysia Airlines (MAS), Silkair (SLK) and Singapore Airlines (SIA).

June 2012: Tiger Airways (TGR) launched 3X-weekly, Singapore - Colombo service.

(TGR) has finalized a sale and purchase agreement to acquire 40% in Southeast Asian Airlines (SEAir) (SRQ) for $7 million. The investment will be held through (TGR)’s wholly owned subsidiary, Roar Aviation and will see (SRQ) adopt the (TGR) business model.

“The investment in (SRQ) is in line with our strategy to develop the business into a pan-Asian one, one that will enable us to leverage on the strength of our Singapore base and scale up the size of our business across the region,” (TGR) (CEO), Chin Yau Seng said.

(SRQ) operates two A319s leased from (TGR) and operates domestic service within the Philippines as well as international flights to destinations including Singapore, Hong Kong, Bangkok, and Kota Kinabalu. It plans to add three A320 airplanes to its fleet this financial year and new routes to the network, with further details to be announced at a later date.

(TGR) in January acquired a 33% stake in Mandala Airlines (MND).

“We will continue to seek opportunities to extend the Tiger (TGR) reach in Asia Pacific,” Chin said. “Asia is one of the fastest growing areas in air travel and we intend to play a major role in driving that growth.”

Tiger Airways (TGR) will launch daily, Singapore - Phnom Penh service on October 1.

July 2012: Tiger Airways (TGR) Holding narrowed its loss after tax to -S$14 million/-$11.2 million for the second quarter, against a -S$21 million loss recorded during the same period last year, the company said.

Total revenue for the quarter was $181 million, up +1.4% on the $179 million recorded in the previous year. The increase was largely due to higher yield (up +7.8%), offset by a -4.5% decline in capacity and lower passenger load factor of 83.3% LF, down -2.2% points.

Total expenses increased +1.2% to $193 million as a result of an increase of +18% in average fleet size, partially offset by lower fuel cost during the quarter.

“The (TGR) Group’s financial performance is gradually coming back on track with Tiger (TGR) Singapore turning in an operating profit of +$4 million this quarter,” Tiger (TGR) (CEO), Chin Yau Seng said. Tiger Australia (TAU)’s operating loss narrowed from -$23 million to -$21 million this quarter, he said.

Looking ahead, the group warned that volatile fuel prices continue to weigh on profits but noted Tiger Singapore (TGR)’s healthy load factors and plans by Tiger Australia (TAU) to increase services to the level it enjoyed last July.

Tiger Airways (TGR) has appointed Koay Peng Yen as Group (CEO), effective August 10. Koay will replace Chin Yau Seng, who will return to controlling stakeholder, Singapore Airlines (SIA).

Koay has primarily a shipping background and is former executive director of Pacific Carriers Ltd and PaxOcean Engineering Group, in the marine and offshore engineering/shipping industries.

“Notwithstanding that he is entering the airline industry for the first time, the board assesses that his proven leadership and strategic skills, capacity for incisive thinking and facility for building cohesive teams, are able to propel the Group to greater and sustainable heights,” (TGR) Chairman, J Y Pillay said.

2 A320-232s (5188, RP-C6319; 5228, RP-C5319), ex-(D-ACCD) & (F-WWBQ), leased to SEAir (SRQ).

August 2012: Tiger Airways (TGR) Holdings announced it will begin a search to replace outgoing Tiger Singapore (TGR) Managing Director, Stewart Adams.

Adams, who joined (TGR) in January 2011 from bmi Regional, is leaving at the end of the year to pursue personal interests.

Tiger Group (CEO), Chin Yau Seng said Adams had joined (TGR) at an important stage in its growth. "Since then, he has led his team through one of its most difficult periods, strengthened the airline's operations and brought it back on track to achieving profitable growth," Chin said to Malaysian national news agency "Bernama."

September 2012: Tiger Airways (TGR) presently only serves four cities in China. It is becoming very strong in Indonesia thanks to its part ownership of Mandala Airlines (PNB). It has new flights to Bali from its Singapore base. Bali is served by AirAsia Indonesia (AWR), Jeststar Asia (JSA), Singapore Airlines (SIA), Garuda (GIA), and also Qatar Airways (QTA) and (KLM) with fifth-freedom rights. Mandala Airlines (MND) is also adding Singapore flights from nearby Padang on the island of Sumatra.

October 2012: Tiger Airways (TGR) has launched two new routes from its Singapore (SIN) base, using its single fleet of 180Y-seat A320s. On 27 September, (TGR) began operating five times weekly to Hyderabad (HYD) in southeast India – the airline’s sixth destination in India. This makes (TGR) the third foreign low-cost carrier (LCC) to serve Hyderabad after flydubai (FDB) and Air Arabia (ABZ). Competition comes from SilkAir (SLK)’s eight flights a week. On 1 October, (TGR) added Cambodia as a country market, when (TGR) began operating daily to the country capital, Phnom Penh (PNH). The route is already operated by SilkAir (SLK) 12 times weekly and Jetstar Asia (JSA) with four weekly frequencies.

October 2012: Virgin Australia (VOZ) has acquired 60% of Tiger Airways Australia (TAU), 100% of Australian regional, Skywest Airlines (SKD) and has sold a 10% stake to Singapore Airlines (SIA).

(VOZ) said the deals will accelerate growth, diversify earning and intensify competition in Australia. If approved, the Virgin Australia Group will grow to 139 airplanes and more than >9,000 employees. “The acquisition of Tiger Australia (TAU) and (SKD) provides Virgin Australia (VOZ) with a strong presence in the budget, Fly-in Fly-Out and regional markets, enabling us to fast-track our expansion in these areas and become a stronger competitor,” (VOZ) (CEO), John Borghetti said.

Specifically, (VOZ) has inked a share purchase agreement with Tiger Airways (TGR) to acquire control of (TAU) for AUD35 million/$33.2 million, plus a further AUD5 million if “certain financial performance targets” are hit within five years. It has agreed in principle to fully acquire (SKD) for AUD0.45 per share, which would be paid in cash and new (VOZ) shares, although the deal still needs to be approved by (SKD)’s shareholders. Finally, (SIA) will buy 10% of (VOZ) through a share placement.

If the (SKD) deal goes ahead, the airline will become part of the (VOZ) brand, but will continue to fly under its existing air operator’s certificate (AOC). (SKD) will also retain its own (CEO) and management team and continue to be based in Western Australia. “We launched a regional network partnership with Skywest (SKD) in October 2011 and now we will be able to realize the full potential of the operation through developing a more integrated network, service and frequent flyer program,” Borghetti said.

Under the (TAU) deal, (VOZ) and (TGR) are planning to enter a shareholder, brand licensing and services agreement. The partners have also agreed to invest up to a further AUD62.5 million in (TAU). “The joint venture has flexibility to grow Tiger Australia (TAU)’s fleet from 11 to up to 35 airplanes by 2018,” (voz) said.

“This transaction enables Virgin Australia (VOZ) to access the budget market and enables Tiger Australia (TAU) to expedite its growth, providing greater competition to this important market segment. By partnering with Tiger Airways (TGR), we can use our expertise to leverage (TAU)’s competitive cost base and build a sustainable budget carrier. We are committed to maintaining the (TAU) business model and brand, and we look forward to collaborating with (TGR) as the business grows,” Borghetti said.

November 2012: Tiger Airways (TGR) and Scoot (SCT) added 13 more (TGR) destinations to their joint agreement, comprising the Indian cities of Bangalore, Kochi, Hyderabad, Chennai, Thiruvananthapuram, and Tiruchirappalli, plus Phnom Penh, Hanoi, Dhaka, Penang, Colombo, Kuching, and Jakarta. The cities bring the total number of destinations served under the partnership to 16.

January 2013: Parent, Singapore Airlines (SIA), under (CEO), Goh Choon Phong, has been transformed from a carrier focused on the premium segment to an airline group with a range of brands for different market segments. No longer content to be reliant on the slow-growing premium business, the group aims to tap into all market segments with its portfolio: (SIA) mainline (premium), SilkAir (SLK) (premium short-haul), Tiger Airways (TGR) (low-cost short-haul) and Scoot (SCT) (low-cost medium-haul). Tiger (TGR) and Scoot (SCT) plan to add airplanes this year, as does SilkAir (SLK). In terms of route expansion, China will be a key focus for the group in 2013. It may also look to strengthen relations with Star (SAL) Alliance partner, Air China (BEJ) as another means of accessing China.

Tiger Airways (TGR) on February 1 will implement "Tigerconnect' in collaboration with Singapore’s Changi Airport Group (CAG). This system allows passengers to transfer through Changi Airport without the need for a travel visa to enter Singapore, immigration clearance, or to retrieve and recheck-in bags for onward flights.

Tigerconnect is hosted on the Changi Connects platform that was launched by (CAG) in November. It will be available to passengers connecting through Singapore on (TGR), partner airlines: Mandala (MND) and SEAir (SRQ), and on joint itineraries offered with Scoot (SCT).

Changi Airport has seen a strong increase in transfer traffic over the past year, with a +21% year-over-year increase in the 12 months ending November 2012. Tiger (TGR) has also seen growing demand for connecting flights across its network, with more than >120,000 passengers transiting Changi Airport in 2012.

February 2013: Mandala Airlines (MND) is looking at adopting the Tiger Airways (TGR) brand name for its operations in Indonesia. (MND) is working towards rebranding itself as "TigerMandala," says its President Director, Paul Rombeek. "We'll like Tiger Indonesia to be more consistent as a group, but the Mandala name has to stay, so that's where we are," he adds.

Tiger Airways (TGR) bought a 33% stake in Mandala (MND) after a financial restructuring in (MND). (MND) then restarted operations last April, after emerging from bankruptcy. It operates a fleet of seven A320s and plans to grow this to up to 25 airplanes by 2015.

Philippine carrier Seair (SRQ), in which (TGR) holds a 40% stake, has meanwhile applied to the country's Exchange Securities Commission to "do business under the name and style of Tiger [Airways]".

It is understood that both carriers want to take on the Tiger name so as to capitalize on the brand name in the region. (TGR) said in January that its focus is on bringing its Indonesian and Philippine affiliates back to profitability as the longer-term potential of both markets is promising.

May 2013: Tiger Airways (TGR) has narrowed its losses in the year to March 31, 2013 and extended its operating profit to a second consecutive quarter, while forecasting a positive operating result by mid-July 2013 after the sale of 60% of Tiger Australia (TAU) to Virgin Australia (VOZ) is completed.

(TGR) also plans to add frequencies to high demand routes between Singapore and Malaysia and expects to take delivery of 10 A320s during the financial year, half of which will be allocated to the Singapore operation and the remainder between Tiger Australia (TAU) and two associated airlines, Mandala (MND) and SEAir (SRQ).

Tiger Singapore (TGR) will use the aiplanes to increase capacity by about +25% by the end of Fiscal Year 2014 and taking advantage of expanded bilateral rights between Singapore and Indonesia, which will also boost Mandala (MND). However, the group still faces significant challenges as it strives to nurture three affiliated carriers in Australia, Malaysia, and the Philippines to profitability.

Competition in the Indonesia - Singapore market will intensify in the 3rd quarter 2013 with Singapore Airlines (SIA) adding capacity, while its regional subsidiary, SilkAir (SLK) and low-cost carrier (LCC) affiliate Tiger Airways (TGR) each launch services to two new Indonesian destinations. Garuda Indonesia (GIA), (TGR) affiliate Mandala Airlines (MND) and Jetstar Asia (JSA) are all planning to follow (SIA), SilkAir (SLK) and (TGR) in adding capacity in the dynamic Indonesia - Singapore market.

The surge in capacity is in part made possible by a newly expanded bilateral agreement between the two countries. Slot constraints, however, threaten to impede growth for some carriers operating in the market and make it difficult to use newly awarded traffic rights. For example, Indonesia AirAsia (AWR) has already been set back by slot constraints at Changi Airport in attempts to launch three new routes to Singapore.

(GE) Capital Aviation Services Limited (GECAS) (GEF) announced it has delivered a new leased A320 to Tiger Airways (TGR) Singapore to expand TGR)’s fleet. The A320 is the first of five scheduled for delivery in 2013 as part of a multiple airplane purchase and leaseback transaction with Tiger Airways Holdings.

Tiger Airways Holdings, established in 2003, is the parent company of a group of budget carriers operating in the Asian region and Australia. The Group consists of wholly-owned Tiger Airways (TGR) Singapore and Tiger Airways Australia (TAU), and partially-owned Mandala Airlines (MND) and SEAir (SRQ). As of 30 April 2013, the Group’s fleet comprises 44 A320-family airplanes, averaging under three years of age. The group operates an extensive network covering over 50 destinations across 13 countries in the Asia Pacific.

July 2013: Low-cost carrier (LCC) Tiger Airways (TGR) has been rebranded as "Tigerair," as it seeks to improve passenger connectivity through Singapore. SEE ATTACHED - - "TGR-2013-07 - TIGERAIR INTRO." The rebranding means that its subsidiary in Australia, Tiger Airways Australia (TAU), will become "Tigerair Australia." The carrier has yet to confirm if its affiliates in Indonesia and the Philippines: (Mandala Airlines (MND); and Seair (SRQ)) will be rebranded.

A contemporary grey rounded font typography, with brushing orange accents replaces the leaping tiger that used to be the main element of Tiger Airways (TGR)'s logo.

Tigerair (TGR) says it is creating synergies between its carriers based in Singapore, Indonesia and the Philippines by allowing passengers to book connecting flights via Singapore. It also plans to introduce mobile and web check-in options, improve the capabilities available on its mobile phone applications, allow passengers to amend bookings online and give them the option to pre-order meals. "We have initiated a series of changes since late last year, and this brand identity should be seen as a reinforcement of our commitment towards a better and bolder Tigerair (TGR)," says the group's (CEO), Koay Peng Yen.

Tiger Airways Holdings slipped back into the red for the quarter ending June 30 2013 (1st Quarter, Fiscal Year FY2014) as its affiliates in Australia, Indonesia and the Philippines were again unprofitable. The group is confident its new partnership with Virgin Australia (VOZ) will soon lead to profits at Tigerair Australia (TAU) and there will also be improvements at Tigerair Mandala (MND) and Tigerair Philippines (SRQ), but challenges remain at all three low cost carriers (LCC)s.

Meanwhile, the group faces potential over-capacity in its home market as Tigerair Singapore (TGR) accelerates expansion. (TGR) is adding five airplanes over the next nine months for a total of 26 A320s, marking the biggest expansion in two years, when over-capacity led to losses.

TigerAir (TGR) commenced operations on its fourth Indonesian route from Singapore (SIN) on July 1, when it launched services to Yogyakarta (JOG). (TGR), which already serves Jakarta (thrice-daily flights) and Denpasar (four-weekly) from Singapore, offers daily frequencies on the newly launched route. Indonesia AirAsia (AWR) provides competition on the route, which it operates with services of the same frequency.

There are bigger potential opportunities for growth in Indonesia, but Tigerair Mandala (MND) has not yet become profitable. The outlook for Tigerair Philippines (SRQ), which has been stuck at only five A320s for the last year, is bleaker.

2 A320-232s (5662, PK-RMV; 5697, PK-TRK), ex-(F-WWDO & F-WWBN), leased to TigerAir Mandala (MND)

August 2013: tigerair (TGR), the recently renamed low cost carrier (LCC), has begun its new route from Singapore (SIN) to Bandung (BDO), the capital of West Java province in Indonesia, on August 1st. The 995 km sector is being flown using an A320 and is scheduled as a daily service.

Singapore-based Tigerair group plans to commit half of its deliveries in the current fiscal year to its offshore joint venture (JV) franchises, although it is not revealing how the following year’s deliveries will be allocated.

While Tigerair (TGR) does not have the same level of orders as the other major Asian low-cost carriers like Jetstar (IMU), Lion Air (MLI) and AirAsia (ASW), it does have affiliate airlines that it intends to expand. The group currently has 47 A320-family airplanes (22 with the core Singapore-based operation, 11 with Tigerair Australia (TAU), nine with Indonesian carrier Tigerair Mandala (MND) and five with Tigerair Philippines (SRQ).

The group is scheduled to receive 10 A320s during the fiscal year through March 2014, and five are allocated to the Singapore carrier (TGR). Two of these already have been delivered.

Of the other five airplanes, two already have been delivered to (MND), and two are scheduled for delivery to Tigerair Australia (TAU). The one other yet-to-be delivered airplane remains unassigned, said the spokeswoman.

Beyond these 10 airplanes, Tigerair (TGR) has another 15 A320s on order for delivery by December 2015. (TGR) previously has said that it wants to expand in Asia through new strategic partnerships and organic growth. When asked if (TGR) is considering more overseas hubs, the spokeswoman said that for now Tigerair (tgr) is “focused on growing our existing joint ventures (JV)s.”

Tigerair Singapore (TGR) achieved an operating profit for the three months through June 30, although the three joint ventures were all in the red. (TGR) says it expects more losses from the Indonesia and Philippines carriers, as they continue to expand.

Tigerair Australia (TAU) (CEO), Rob Sharp recently said that (TAU) needs to double the size of its fleet of 11 A320s to achieve the scale efficiencies that are expected from a low-cost carrier (LCC). This would allow it to reach critical mass and maximize asset utilization.

Virgin Australia (VOZ) bought a 60% share in Tigerair Australia (TAU) in a deal that was completed in July, with the Singapore-based Tigerair parent owning the remainder. Virgin Australia (VOZ) has stated that the Tigerair Australia (TAU) fleet is expected to grow to 35 airplanes by 2018.

September 2013: Singapore - Indonesia has emerged as one of the world’s fastest growing markets with capacity up +40% year-over-year. While capacity increases on the two largest routes connecting the two countries (Singapore to Jakarta and Bali) have captured most of the attention, secondary routes are growing even faster.

The third and fourth largest Indonesian destination from Singapore, Surabaya and Medan, will see capacity nearly double in November 2013 compared to November 2012. To the 10 other smaller Indonesian destinations served from Singapore, capacity is increasing by a collective +78%.

Low Cost Carrier (LCC) group Tigerair (TGR) has quadrupled its Singapore - Indonesia operation over the last year, growing its share of capacity in the process from about +4% to +15%. Tigerair (TGR) now serves eight Singapore - Indonesia routes, up from only two a year ago.

AirAsia (ASW) has a 17% share and also now serves eight Singapore - Indonesia routes, up from four a year ago although its capacity has increased a more modest +34% from a much higher base. The Singapore Airlines (SIA) Group is the market leader with a 31% share and will soon serve all 14 routes as regional subsidiary SilkAir (SLK) has added three Indonesian destinations.

(TGR) plans to launch new services from Singapore to five destinations from October. (TGR) will start a Singapore - Lijiang service on October 29. The service will be operated twice weekly on odd-numbered weeks and once weekly on even-numbered weeks. This will be followed by four times weekly, Singapore - Chiang Mai, and Singapore - Langkawi services on November 2nd and 8th respectively.

A six times weekly Singapore - Surabaya service will also be introduced on November 15th, complementing the daily service operated by its Indonesian affiliate, Tigerair Mandala (MND). Subsequently, a thrice weekly, Singapore - Lombok service will begin on November 22nd.

(TGR) will use A320 airplanes on these new services.

Schedules show that (TGR) will be the only operator on the Singapore - Lijiang route, and will compete with SilkAir (SLK) on routes from Singapore to Chiang Mai, Langkawi, and Surabaya.

October 2013: Tigerair Singapore (TGR) has started serving Myanmar with the introduction on October 1st of a daily service between Singapore (SIN) and Yangon (RGN). The 1,920 km route is already served by five other airlines; Myanmar Airlines (BRM) (10 weekly flights), SilkAir (SLK) (nine), Golden Myanmar Airlines, Jetstar Asia (JSA) and Singapore Airlines (SIA) (each with seven). This is Tigerair Singapore (TGR)’s fourth new route of 2013. The previous three have all been to destinations in Indonesia.

The Singapore - China market has huge potential for low-cost carriers (LCC)s, which currently only account for 19% of capacity between the two countries. But the market has proven to be challenging for Jetstar Asia (JSA), which is cutting two more Singapore - China routes and reducing the (LCC) group’s capacity share to an insignificant 3% compared to 10% two years ago.

Expansion from Tigerair (TGR) and Scoot (SCT) has filled some of the void left by (JSA). But total (LCC) capacity and the (LCC) penetration rate in the Singapore - China market is on the decline, dropping to only 16% in January 2014.

Singapore’s overall (LCC) penetration is now 31% and is continuing to rise. The relatively low penetration in the Singapore - China market is surprising, particularly as the market enjoys "open skies." But the long-term potential is there for more (LCC) services.

November 2013: Tigerair Singapore (TGR) has added two more destinations to its gradually expanding hub in Singapore (SIN). On October 29th it began weekly (Tuesday) flights on the 2,870 km route to Lijiang (LJG), its fourth destination in China after Guangzhou, Haikou, and Shenzhen. Then, on November 2nd, (TGR) resumed four times weekly flights to Chiang Mai (CNX) in Thailand, a destination it had served between 2005 and early 2008. This 2,000 km route is already served daily by SilkAir (SLK). Both routes will be served by Tigerair Singapore (TGR)’s A320s.

Tigerair Singapore (TGR) commenced operations on its third Malaysian route on November 8th, when it launched services from its Singapore (SIN) base to Langkawi (LGK). Flights on the 700 km route are offered with four weekly frequencies and come in addition to (TGR)’s existing services to Kuala Lumpur (28 weekly services) and Penang (16). A320s are deployed to serve Langkawi and (TGR) faces competition from AirAsia (ASW) (daily frequencies) and SilkAir (SLK) (five weekly). The route was previously served by (TGR) in 2009.

(TGR) has begun thrice-weekly (Mondays, Wednesdays, Fridays) service between its hub in Singapore (SIN) and Lombok (LOP) in Indonesia. The 1,760 km route will be operated by (TGR)’s A320s and faces direct competition from SilkAir (SLK)’s five weekly flights. Service started on November 22nd. Lombok’s other international services are to Kuala Lumpur with AirAsia (ASW), and Brisbane and Perth with Jetstar Airways (IMU).

(TGR) will be launching services from Singapore to Male, Maldives starting January 24th with A320s on the four times weekly route. (TGR) will compete with flag carrier, Singapore Airlines (SIA) on the route.

(TGR) of Singapore this month unveiled the first A320 airplane to be retrofitted in Asia with Sharklets. Five A320s have already been delivered to Tigerair (TGR) with Sharklet-ready wings, with the retrofit work being undertaken by Sepang Aircraft Engineering in Kuala Lumpur, Malaysia.

Sharklets are made from light-weight composites and are 2.4 meters tall. They are an option on new-build A320 Family airplanes and standard on all members of the new A320neo family. They offer operators up to -4% fuel burn reduction on longer range sectors and provide the flexibility of either adding an additional 100 nm range or increased payload capability of up to 450 kg.

In addition to its retrofitted airplanes, (TGR) will start taking delivery of production-fitted Sharklet airplanes later this year.

Over >9,900 A320 Family airplanes have been sold worldwide and almost 5,800 airplanes delivered to some 390 customers and operators.

December 2013: Singapore Airlines ((IATA) Code: SQ, based at Singapore Changi) (SIA) has increased its stake in Tigerair ((IATA) Code: TR, based at Singapore Changi) (TGR) to 40% following the recent acquisition of an additional 7.3% shareholding from Temasek Holdings. In its press release to the Singaporean bourse, Singapore Airlines (SIA) said it had acquired 72.33 million shares in (TGR) from Dahlia and 1,800 shares from Aranda for SGD 49.034 million/USD 38.72 million, funded by (SIA)'s internal cash resources. Both Dahlia and Aranda are indirect, wholly-owned subsidiaries of Temasek Holdings.

Indian low cost carrier (LCC) SpiceJet (ROJ) and Singapore’s largest budget airline, Tigerair (TGR) have signed a three-year interline agreement for more connectivity between flights operated by both carriers. The connections will be through the Hyderabad airport in south India.

The alliance is part of the heightened activity in the Indian airline space, as more airlines are launching operations. The two airlines have reportedly been in discussions for an equity stake.

Indian business conglomerate, the Tata group, has floated two airline joint ventures, one with Singapore Airlines (SIA) for a full-service airline and another with Malaysia’s AirAsia (ASW) for a low-fare carrier, after the government relaxed foreign direct investment (FDI) rules for the sector in September 2012. Both ventures are awaiting final regulatory clearances. Jet Airways (JPL) has just concluded a $900 million transaction to sell 24% equity to Etihad Airways (EHD), and Air India (AIN) is on its way to enter the Star (SAL) Alliance.

Starting January 6, customers traveling on SpiceJet (ROJ)’s domestic network from 14 Indian cities will be able to connect through Hyderabad’s Rajiv Gandhi International Airport to Tigerair (TGR)’s Singapore-bound flights. The 14 Indian cities are Ahmedabad, Bhopal, Chennai, Kolkata, Coimbatore, Delhi, Goa, Indore, Mangalore, Madurai, Pune, Bengaluru, Tirupati, and Visakhapatnam (Vizag). Starting from January 12, (TGR) customers from Singapore will also have easy access to SpiceJet (ROJ)’s domestic network.

Hyderabad’s Rajiv Gandhi International Airport, which is operated by private company (GMR) Hyderabad International Airport (GHIAL), will provide a free porter service to facilitate the collection and transfer of checked-in baggage for passengers traveling on connecting flights between the two airlines.

China Airlines (CHI) and Singapore-based budget carrier, Tigerair (TGR) will launch a low-cost carrier (LCC) joint venture (JV) (Tigerair Taiwan) which is expected to begin operations at the end of 2014.

China Airlines Chairman, Sun Huang-Hsiang said the (JV) should “stimulate demand in the civil aviation market here, usher in a new era for the local aviation industry and create Taiwan’s first (LCC).”

Tigerair (TGR) (CEO), Koay Peng-Yen said the agreement will “help us enter new markets in Taiwan, Japan, and Korea. The combination of China Airlines (CHI)’s familiarity with these markets and our experience in the (LCC) industry makes us even more confident of establishing a competitive (LCC) that will continue to grow.”

(CHI) said that “preparations for the formation of the new airline will immediately get underway in accordance with the regulations of the Civil Aeronautics Administration (CAA). Tigerair Taiwan will have a capitalization of NTD2 billion/$67 million with the China Airlines Group holding a 90% stake and Tigerair (TGR) 10%.”

The network will cover major destinations in Northeast and Southeast Asia, Hong Kong, Macau, China, and Taiwan. SEE ATTACHED - - "TGR-2013-12 - TIGERAIR TAIWAN," SHOWING L - R, LIN PENG LIANG, (CHI) PRESIDENT; SUN HUANG HSIANG, (CHI) CHAIRMAN; KOAY PENG YEN (TGR) (CEO); & HO YUEN SANG (TGR) (COO).

January 2014: Tiger Airways (TGR) Holdings Ltd swung to a loss in its fiscal third quarter due to lower revenue and one-off charges related to its associates, the budget carrier said.

For the three months ended December 31, (TGR) posted a net loss of -118.5 million Singapore dollars/-US$92.7 million, reversed from a +S$2.0 million net profit a year earlier.

(TGR)'s third-quarter performance was hit by -S$23.1 million in losses suffered by its associates, as well as S$88.3 million worth of exceptional charges. The one-off charges comprised a S$30.3 million loss related to its planned sale of its Philippine associate and another S$58 million of impairment losses stemming mainly from loans made to its associates.

Revenue for the quarter slipped -30.5% to S$172.1 million from S$247.7 million, hurt by lower takings from Tiger's Singapore business, as well as the absence of contributions from its Australian arm (TAU), which was partially sold to Virgin Australia (VOZ) Holdings Ltd last year.

(TGR), which is 40%-owned by Singapore Airlines (SIA) Ltd, said its expenses declined -21% to S$180.9 million from S$229.8 million.

"Our third-quarter operating performance was dragged down by industry overcapacity, which had led to weaker yields and lower load factors," (TGR) Group (CEO), Koay Peng Yen said.

The group expects its Singapore arm to continue facing "near-term pressure on yield and load factors in the current seasonally quiet quarter amid an overcapacity situation in the industry," it said.

(TGR) said it will sell its 40% stake in its unprofitable Philippines investment, Tigerair Philippines (SRQ), to Cebu Air (CEB) Inc in a deal worth US$15 million. In July 2013, (TGR) sold 60% of its Australian arm (TAU) to Virgin Australia (VOZ).

February 2014: Scoot (SCT) will use its first Boeing 787 airplanet (a 787-9 due for delivery in November this year) on routes that include Japan, Taiwan, and Australia, (SCT) (CEO), Campbell Wilson said. Speaking at the Singapore Airshow, Wilson said the expanding northeast Asia market will suit the new airplane’s capability, and better help feed into (SCT)’s increasingly close ties to its Singapore-based narrow body low cost carrier (LCC) cousin TigerAir (TGR).

(IAE) International Aero Engines has given Singapore’s Tigerair (TGR) Pure-V designation on (V2500)s, indicating the engines contain (IAE)-approved parts and repairs throughout.

March 2014: Singapore-based Tiger Airways Holdings, parent company of the Tigerair group of low-cost carriers (LCC)s, has placed an order for 37 Airbus A320neos, but canceled nine Airbus A320ceos currently on order.

“(TGR) has re-calibrated its strategy and taken the necessary steps to re-position Tigerair,” Tiger Air (TGR) (CEO), Koay Peng Yen said.
The new order, for Pratt & Whitney (PW1100G)-powered airplanes, could save (TGR) up to 15% per year compared to the A320ceos.

The deal, valued at $3.8 billion at current list prices, should help secure better operational economies and wider-ranging fleet options across the group’s Tigerair (TGR), Tigerair Australia (TAU), Tigerair Mandala (MND), and Tigerair Taiwan brands. In light of recent cutbacks to deliveries by AirAsia (ASW), and by Qantas (QAN) to “suspend growth by Jetstar Asia (JSA) until such time as conditions improve,” Tiger (TGR)’s decision looks well timed.

Koay said the deal “allows us to continue building on our leadership position in budget travel at a measured pace.” As well as cutting out less fuel-efficient A320ceos, the deal pushes back delivery from this year to 2018 through 2025, which brings an additional cash flow benefit.

(TGR) said the newly negotiated deal should help dissipate some concerns of “a potential capacity overhang” in coming years.

(IATA) predicts “a significant improvement in airline profits this year compared to 2013,” and an overall traffic numbers uptick in the region.

May 2014: Tigerair Singapore (TGR) has added a further Chinese destination to its Singapore (SIN) network. On May 15th, (TGR) began operating thrice-weekly (Tuesdays, Thursdays, Saturdays) flights on the 3,690 km route to Xi’an (XIY) using its A320s. No other carrier serves this airport pair. Home to the world-famous terracotta warrior army, Xi’an is the ninth Chinese destination under Tigerair Singapore (TGR)’s steadily expanding regional network.

Singapore-based low-cost carrier (LCC) Tigerair Group is replacing its (CEO) Koay Peng Yen with ex-Singapore Airlines (SIA) executive and Tigerair board member, Lee Lik Hsin after continuing heavy losses in fiscal year (FY) 2014.

The Tigerair Group (comprising Tigerair Singapore (TGR), Tigerair Mandala (MND) and Tigerair Australia (TAU)) posted a net loss of -S$223 million/-$177 million for the year ended March 31, 2014, widened from a net loss of -S$45 million/-$36 million for the same period in 2013.

The Group reported an operating loss of -S$52 million, reversed from an operating profit of +S$7.3 million year-over-year.

The flagship Tigerair Singapore (TGR) reported an operating loss of -S$59 million, reversed from a profit of +S$57 million in 2013.

Tigerair (TGR) pointed to overcapacity, increased competition and “turbulence in [various] markets that hampered fledgling carriers from establishing a decisive hold” as reasons for the poor results.

As part of an ongoing cost-cutting program, Tigerair (TGR) has sold 60% of its Australian operation to Virgin Australia (VOZ), sold Tigerair Philippines (SRQ) to Cebu Pacific (CEB) and has trimmed the network of Tigerair Mandala (MND) (Indonesia). The situation at its Indonesian affiliate (MND) is particularly challenging, prompting the group to look at divesting its investment in Tigerair Mandala (MND). The group is grounding five of (MND)’s nine A320s and three of the five airplanes are being returned from Tigerair Philippines (SRQ). The removal of the eight airplanes, along with the March 2014 cancellation of nine A320 orders which would have been delivered in (FY) 2015 and (FY) 2016 are two components of a turnaround initiative.

Indonesian (LCC) Citilink (CNK) has also reportedly been in talks with Tigerair Mandala (MND) over its possible sale to the Garuda Indonesia (GIA) subsidiary.

The company expects to launch Tigerair Taiwan with China Airlines (CHI) at the end of 2014.

July 2014: The Tigerair Group reported an after-tax loss of -SGD65.2 million/-$52.6 million for the quarter ended June 30, 2014 (1Q) (FY) 2015, deepening the -SGD32.8 million loss reported for the year-ago period (1Q) (FY) 2014.

During the quarter, (TGR) reported an operating loss of -SGD16.4 million, compounding the operating loss of -SGD6.2 million reported for the year-ago period. Total revenue was down -28.4% to SGD169 million in (1Q) (FY) 2015. Total expenses fell -23.5% to SGD185.4 million year-over-year.

(TGR) said the poor revenue performance was primarily due to the exclusion of Tigerair Australia (TAU) from the group results after Virgin Australia (VOZ) acquired a 60% stake in (TAU) last year.

In addition, Tigerair (TGR) had to shoulder a SGD35.3 million share of the loss for the quarter of Tigerair Mandala (MND), which ceased operations at the beginning of July. The group also recorded a SGD14.6 million provision for Mandala (MND)’s shutdown costs.

Tigerair Singapore (TGR) reported an operating loss of -SGD19.8 million for the first quarter of the current financial year, reversed from an operating profit of +SGD5.9 million for the year-ago period. (TGR) said this was “nevertheless an improvement over the operating loss of -SGD29.4 million recorded in the quarter ended March 31, 2014.”

Tigerair Singapore (TGR)’s revenue grew +3.2% to SGD166.0 million, on the back of higher capacity (+14.8%) and stronger load factor (+0.8% point), partially offset by lower yields (-11.5%). Expenses increased +19.9% to SGD85.8 million, due to increased capacity and higher unit cost (+4.5%).

Tigerair Group (CEO), Lee Lik Hsin, said, “Despite the competitive operating conditions faced by Tigerair Singapore, (TGR), our first-quarter results showed a slight improvement over the last quarter. The financial performance was weighed down by share of loss from Mandala (MND), and shutdown costs in relation to the cessation of operations in Indonesia. With the cessation, the group will no longer be exposed to loss-making Mandala (MND).”

Lee took over at the helm of Tigerair (TGR) in May this year following the resignation of previous (CEO), Koay Peng Yen in the wake of continuing heavy losses in (FY) 2014.

As the group has capped its share of loss to its net investment in Tigerair Australia (TAU), it did not recognize its share of loss from Tigerair Australia (TAU) during the quarter.

Tigerair Singapore (TGR) said the operational environment remained “challenging,” due to “persistent oversupply of capacity in the region.” It said the group continued “to focus on cost discipline, rationalizing its network and improving operational efficiency.”

The Tigerair Group is replacing board Chairman and industry veteran, J Y Pillay in favor of financial strategist, Hsieh Fu Hua from the end of July.

Hsieh is former Chairman at Singapore’s United Overseas Bank; he has been (CEO) of Singapore Exchange and ex-President of Singapore’s sovereign Temasek Holdings. He will replace Pillay, a 30-plus year veteran of Singapore Airlines (SIA), who has been credited with being a key architect of Singapore Airlines (SIA)’s early successes.

The move comes following reported Tigerair Group losses of -$177 million for the year ended March 2014 and a failed Tigerair (TGR) bid to find a buyer for its Indonesian Tigerair Mandala (MND) subsidiary. Tigerair (TGR) closed the Mandala offshoot with just a few weeks' notice. That came on the heels of the fire sale of Tigerair’s Philippine (SRQ) operation for $15 million in March to Cebu Pacific (CEB).

Pillay is the second Tiger executive casualty in the last couple of months (in May, Tigerair (TGR) replaced (CEO), Koay Peng Yen with former Singapore Airlines (SIA)’s long-term executive, Lee Lik Hsin).

Tigerair (TGR) said the group will “now focus on its core operation in Singapore” and indicated there would be rationalization in the near future; it also said it was “laying firm foundations for the Tigerair Group’s turnaround.”

August 2014: The Competition Commission of Singapore (CCS) has granted anti-trust immunity (ATI) to the alliance agreed between Singapore-based budget carriers, Scoot (SCT) and Tigerair Singapore (TGR) last December.

The (ATI) allows the two carriers to coordinate schedules and pricing on routes operated by both airlines. The two carriers operate complementary networks, with Tigerair (TGR) focusing on shorter-haul routes and Scoot (SCT) operating in the medium-long haul arena. The airlines said the alliance would make it possible for them to offer “a better spread of flight choices,” offering passengers “greater flexibility.”

The two airlines will also collaborate on connecting traffic via Singapore Changi Airport, “supporting the Singapore aviation hub and broader economy,” they said.

This will afford customers from (SCT)’s network in China streamlined connection onto Tigerair (TGR)’s network in Southeast Asia and India. At the same time, (TGR) customers will have more streamlined access to (SCT)’s choice of medium-haul destinations.

Tigerair Group (CEO), Lee Lik Hsin said, “Besides allowing us to further strengthen our alliance with (SCT), this development will also empower both (SCT) and ourselves to deliver even greater flexibility and value to our customers through the coordination of schedules and routes. This is not just a positive development for Tigerair (TGR) and Scoot (SCT) — it is also a win-win partnership between the alliance and our customers.”

The (ATI) also allows for closer cooperation in other areas such as sales, pricing, scheduling and systems integration. It will also allow (SCT) and (TGR) to build on their existing interline cooperation arrangement.

Tigerair ((IATA) Code: TR, based at Singapore Changi) (TGR) has completed the phase-out of its A319-100 fleet with the last two of the type (3757, 9V-TRA) and (3801, 9V-TRB) having now been ferried to Alice Springs for storage.

The outback Australian storage facility is proving popular with the airline with subsidiary Tigerair Philippines ((IATA) Code: DG, based at Clark) (SRQ) having recently ferried one of its A320-200s, former (RP-C6319) now (5188, 9V-TRO), to Alice Springs for storage as well.

As it currently stands, the entire Tigerair Group is now an all-A320 operation with thirty-eight A320-200s currently in active service, while another eleven are either in storage or undergoing maintenance.

The TigerAir Group (TGR) currently operates 38 airplanes, and serves 16 countries, 39 destinations, 40 routes and 99 daily flights.

October 2014: Singapore Airlines (SIA), key stakeholder in the Tigerair (TGR) low-cost carrier (LCC) Group, has taken a controlling interest in the (LCC)’s holding company and sold the Tigerair Australia (TAU) offshoot to Virgin Australia (VAU) for AUD1 ($0.88).

In what is effectively a bailout of the Tigerair Group, (SIA) has upped its stake in Tiger Airways Holdings from a previous 40% to 55%. It announced a further “guaranteed buy” rights issue to raise some $190 million, which could boost its total ownership to around 70%.

These changes mark the latest elements of a major reorganization following Tigerair (TGR)’s group loss of -$177 million in the year ended March 31, 2014. Immediately after the losses were announced, new (CEO), Lee Lik Hsin was brought in from SIA’s executive team. “Many of the issues [leading to Tigerair’s losses] came from JVs [joint ventures] which simply didn’t work,” Lee told ATW. “That is about to change.”

Since Lee took the helm, the group has sold its Tigerair Philippines (SQH) operation for $15 million to Cebu Pacific (CEB), closed down its Indonesian Tigerair Mandala (MND) subsidiary following a lack of potential buyers, and subleased surplus airplanes to other carriers.

Nonetheless, the latest figures show Tigerair (TGR) is still loss-making. (TGR)’s latest report shows a loss of -S$182.4 million /-$143 million for the three months to September 30, largely due to a S$99.3 million write-down on the sublease of ex-Filipino Tigerair Airbus A320s to Indian carrier IndiGo (IGO).

The sale of the remaining 40% of Tigerair Australia (TAU) to Virgin (VOZ) will take another (JV) headache off the Tiger (TGR) management’s plate. Tiger Australia (TAU) has failed to make a profit for the last two years and saw a ban on flights three years ago after operational irregularities. “Given the ongoing subdued consumer demand in the Australian domestic market, the growth of the Tigerair Australia (TAU) domestic fleet is likely to be reduced,” Virgin Australia (VOZ) (CEO), John Borghetti said.

Lee said the new structure at Tigerair (TGR) should now allow it to concentrate on being what he called “a broad no-frills airline that would tap into strategic alliances into overseas markets.”

This points to an impending tie-up with Tigerair (TGR)’s (SIA) sibling (the wholly (SIA)-owned Scoot (SCT) long-haul (LCC). Given the Competition Commission of Singapore’s recent green light for such an alliance and immunity from anti-trust suits for an alliance, the stage would seem to be set for a full (LCC) arm to be run out of Singapore Airlines (SIA).

With (SIA)’s new controlling interest in both, a joint long/short-haul (LCC) entity could deliver a much more targeted and operationally efficient product to compete with AirAsia in the region.

Lee hinted as much in a recent interview and stressed that Tigerair (TGR) was looking at “going beyond a strategic alliance” with Scoot (SCT).

November 2014: Tigerair Singapore (TGR) has added a new weekly (Saturdays) service between Singapore (SIN) and Guilin (KWL) in southern China. The first flight on the 2,734 km route was operated on November 15th using an A320. According to Ho Yuen Sang, Managing Director & (COO) of Tigerair Singapore, “With its scenic landscapes, Guilin has captured the hearts of many visitors from Singapore and it is a well-known and loved destination for Singaporeans. Currently Singaporeans make up the seventh largest group of tourists to Guilin and with the added convenience of a direct flight from Singapore; we hope more Singaporeans will opt to visit Guilin in the coming months.” Last year Guilin Liangjiang International Airport in southern China handled 5.88 million passengers, ranking it 33rd among Chinese airports.

December 2014: Singapore Airlines (SIA) has increased its shareholding in Tiger Airways (TGR) from 40% to 56%, making the low-cost carrier (LCC) a subsidiary of the legacy carrier (SIA).

(SIA)converted all its perpetual convertible capital securities (PCCS) in Tiger Airways (TGR) into new shares and no longer holds any (PCCS) in Tiger Airways.

The Competition Commission of Singapore late last month cleared the proposed acquisition of (TGR) by (SIA), concluding it would not distort competition because Tigerair Holdings was otherwise likely to cease operations.

Although (SIA) only acquired a majority of the voting rights in Tiger Airways (TGR) following the (PCCS) conversion, it began consolidating the financial results of (TGR) as a subsidiary in its accounts in October.

January 2015: News Item A-1: Tigerair (TGR) has posted a +S$2.2 million/+$1.63 million profit for the fourth quarter of 2014, reversed from a net loss of -S$118 million in the year-ago quarter.

The Singapore Airlines (SIA) subsidiary said that improvements in higher load factors, better yields and a trimming of overall capacity all helped raise (TGR)’s efficiency. “We had to make some difficult decisions in the turnaround process,” (TGR) Group (CEO), Lee Lik Hsin said, adding (TGR) was “not out of the woods yet,” but he was encouraged by the financial results.

The group last year drafted in Lee as a new (CEO) from its (SIA) parent to help the turnaround, and jettisoned its ailing Indonesian Mandala and Tiger Australia (TAU) operations as part of a drive to improve finances.

Another initiative is the short-haul (LCC)’s increasingly close links with (SIA)’s long-haul (LCC) subsidiary Scoot (SCT). It has used joint promotions and synchronized route planning in a bid to leverage passenger loyalty in the notoriously fickle (LCC) sector, and said it has doubled connecting passenger numbers between the two airlines.

From January, Scoot (SCT) and Tigerair (TGR) scheduled linked services on their Singapore - Hong Kong and Singapore - Bangkok routes.

However, Lee said (TGTR) “remains cautious over the various macroeconomic uncertainties as well as the competition” and is committed to continue with its turnaround plan, albeit on a firmer footing as a result of the latest figures.

News Item A-2: Singapore-based low-cost carrier (LCC) Scoot (SCT) is significantly boosting its network in its key Australian market, thanks to a new interline deal with Virgin Australia (VAU).

Scoot (SCT), a subsidiary of Singapore Airlines (SIA), will be able to sell tickets to eight additional destinations in Australia via the interline agreement with (VAU). Scoot (SCT) will connect to these routes through its existing Australian gateways in Sydney, Perth, and the Gold Coast.

The interline deal gives (SCT) the opportunity to expand its reach in Australia without committing more capacity. The recent and planned growth of international service into Australia by Asian carriers (particularly long-haul low cost carriers (LCC)s) has made adding new flights a tougher proposition.

The Virgin Australia (vau) destinations covered by the agreement are Adelaide, Ayers Rock/Uluru, Brisbane, Canberra, Cairns, Hobart, and Launceston. Melbourne will also be included, until (SCT) launches its own direct flights to that city in November.

(SCT) has previously discussed forming a link with Tigerair Australia (TAU), which is a subsidiary of Virgin Australia (VAU). However, Scoot (SCT) presumably decided (VAU) offers a broader domestic network. The interline deal does not include any Tigerair Australia (TAU) services.

Scoot (SCT) already interlines with parent, Singapore Airlines (SIA) and the group’s other subsidiaries, SilkAir (SLK) and the Singapore-based, Tigerair (TGR)) which is separate from Tigerair Australia (TAU). It also interlines with Thailand’s Nok Air (NKA).

The new interline deal is not reciprocal, so Virgin Australia (VAU) will not be selling interline tickets on any (SCT) flights. (VAU) already code shares with Singapore Airlines (SIA) on many international routes. The main benefit to the Australian carrier from the (SCT) interline, will be feeding more traffic into its domestic network.

Virgin Australia (VAU) has made it clear that it will not code share or interline with its own (LCC) subsidiary, Tigerair Australia (TAU), as it does not want to dilute its full-service product.

News Item A-3: Singapore-based low-cost carriers (LCCs) Scoot (SCT) and Tigerair (TGR) say they are beginning to realize significant benefits from a partnership authorized by competition regulators last year.

The two carriers have seen the number of passengers connecting between them double since August 2014, when Singapore’s Competition Commission granted them anti-trust immunity to cooperate more closely.

Tigerair (TGR) is a short-haul (LCC), while Scoot (SCT) operates medium- and long-haul routes. Executives from Singapore Airlines (SIA) (the parent of both (LCC)s) have often stated that closer connectivity will be key to improving their financial performance. Additional feed will help (SCT) fill its wide body airplanes and enable (TGR) to offer a greater range of destinations.

The airlines are also aligning operations where their networks overlap. From this month, the (LCC)s are operating as a joint venture (JV) on the Singapore - Hong Kong and Singapore - Bangkok routes. From February, (SCT) will increase frequency on its Singapore - Perth route to daily, allowing (TGR) to redeploy its airplanes from this route to elsewhere in its network.

Later this year, the two carriers plan to introduce “seamless booking of each other’s flights on their respective websites.” They are also working to integrate their reservations systems, and improve schedule coordination. Other cooperation opportunities include common ground handling, procurement and service center operations.

February 2015: News Item A-1: Although Singapore’s Changi Airport registered a new record high in terms of passenger numbers at 54.1 million passenger movements in 2014, its year-on year-growth reflected only a +0.7% increase in passenger numbers compared to 2013.

Airport management said the poor figures were the result of “several unforeseen events that depressed travel demand, [together with] a difficult operating environment for many airlines in the region.”

Apart from a one-year hit in 2009, due to the global economic crisis, the airport has not recorded less than a <2.5% growth for 10 years. The airport’s slowing figures have been consistently downward, recording +13% growth in 2010, +11% growth in 2011, +10% growth in 2012, and only +5% 2013. Flight movements in 2014 dropped -0.7%, to 341,390, for the entire year.

In comparison, Malaysia’s Airports Holdings Bhd (MAHB) group, which manages Kuala Lumpur airports, saw an overall passenger increase of +4.7% year-on-year from 2013, despite the slump in Malaysian travel attributed to the Malaysian Airlines (MAS)’ MH370 disappearance in March 2014 and MH17 shootdown in July 2014.

The predominant reason for the slackening growth is likely a significant pullback by Southeast Asian low-cost carriers (LCCs) from the Singapore sector; (LCC) seat capacity growth out of Singapore only increased +3% overall for 2014. (LCC)s (including AirAsia (ASW), Jetstar (IMU), Scoot (SCT) and Tigerair (TGR)) all trimmed their schedules or held back on promised expansion plans following the recent overcapacity issues that closed Tigerair Mandala (MND) and caused Lion Air (MLI) to trim schedules from Changi.

“2014 was a challenging year for the aviation industry, especially in Southeast Asia,” Changi Airport Group (CAG) (CEO), Lee Seow Hiang said. Lee said the group is committed to introducing ongoing programs to provide temporary cost relief for airlines to encourage them to “collaborate on new ideas to stimulate passenger traffic or boost operational efficiency” at Changi.

May 2015: The Tigerair Group posted a net loss of -S$18.8 million/-$13.7 million in the fourth quarter of (FY) 2015 ended March 31, a +80.3% improvement over a net loss of -S$95.5 million in the year-ago period.

Fourth-quarter revenue was up +5% to S$172.2, while expenses were down -7.3% to S$174.5 million, producing an operating loss of -S$2.3 million, down -90.6% from -S$24.3 million a year ago.

TigerAir (TGR) said the improvements were due to higher yields, a higher overall load factor and lower fuel costs—mainly due to (TGR)’s release from expensive hedging options taken by parent company Singapore Airlines (SIA). This alone saw a drop in fuel costs of some -20% on the total S$48 million bill.

(TGR) warned of continuing surplus capacity in the industry putting downward pressure on yields, but said its new approach “continues to bear fruit,” with yields up +12% and improved load factors by +3.9%—both of which had proved heavy burdens on the offloaded subsidiaries.

Tigerair (TGR) reported a heavy loss of -$177 million for the year ended March 31, 2014, and as a result sold Tigerair Australia (TAU) for $1 and closed down Tigerair Mandala (MND). Incumbent (CEO), Koay Peng Yen was replaced by ex-Singapore Airlines (SIA) executive, Lee Lik Hsin. “The changes in provisions relating to our fleet will also put us on a firmer footing moving forward,” Lee said.

A one-time charge of $10.8 million came from a review of Maintenance Repair & Overhaul (MRO) operations on leased airplanes, and another $17.5 million charge was applied for the potential sale of two of Tigerair Mandala (MND)’s redundant fleet. The group also logged a loss of -$20.1 million on two Airbus A320ceo airplanes transferred from Tigerair Australia (TAU).

Lee said there would be greater upcoming collaboration with sibling long-haul low cost carrier (LCC) Scoot and parent (SIA), adding that increased connectivity and market access would help “put [the company] on a firmer footing, and see continued headway in the turnaround effort, by optimizing fleet size and improving yields and loads.”

With a fleet of 25 Airbus A320s, Tigerair (TGR) operates flights to 37 destinations across Asia, including China, India, Indonesia, Myanmar, Philippines, Taiwan, and Vietnam.

July 2015: News Item A-1: Singapore base low-cost carrier (LCC) Tigerair (TGR) reported net loss of -SGD1.7 million/-$1.25 million for the first quarter of fiscal year 2016, narrowed from a -SGD65.2 million net loss for the year-ago quarter.

Revenue fell -2% to SGD168.3 million, while expenses lowered -10.8% to SGD167.7 million, producing an operating loss of -SGD1.7 million, narrowed from a -SGD65.2 million loss in the prior-year quarter.

(TGR) said the results were due to reduced expenses including lower jet fuel prices, and lower one-off costs such as “shutdown . . . losses related to Tigerair Mandala (MND),” although both were offset to some degree by a stronger USA dollar.

Fleet and network consolidation led to a +4.7% improvement in yields, but load factor fell -1.2% points to 83.5% LF.

Tigerair (TGR) (CEO), Lee Lik Hsin said (TGR) would “continue to work towards a return to full-year profitability in a challenging environment.”

Lik noted that although the upcoming July - September quarter is a usually weak for Tigerair (TGR), the carrier, the Group expects to keep up the recovery momentum and will “continue to explore all opportunities for synergies with Scoot (SCT) and the rest of the Singapore Airlines Group.”

News Item A-2: TigerAir (TGR) resumes A319 operations.

News Item A-3: "Singapore’s Changi Airport Signs Up 5 New Airlines for T4" by (ATW) Jeremy Torr, July 13, 2015.

Singapore’s Changi Airport will have five new tenants for its new S$1 billion/$750 million Terminal 4, due to open in the second half of 2017.

The new tenants include three AirAsia subsidiaries (AirAsia Berhad (Malaysia) (ASW), Indonesia AirAsia (AWR) and Thai AirAsia (THA)) as well as flag carriers Korean Air (KAL) and Vietnam Airlines (VIE). They will join lead tenant Cathay Pacific Airways (CAT) as Terminal 4 launch airline customers.

The new terminal is billed as a replacement for the airport’s previous Budget Terminal, but also as an extension of the airport’s full-service provision. It will boost Changi’s overall passenger capacity from 66 million passengers a year to around 75 million in its initial phases, and will eventually have a maximum planned capacity of 16 million passengers.

Changi Airport Group (CAG) said a mix of tenants will occupy the new terminal’s four wide body and 17 narrow body gates; more announcements are on the way.

The terminal will feature new, high-tech processing technology for travelers. This will include a complete self-service check-in facility including automated registration and bag drop, facial recognition immigration clearance, and scanned-in self-service boarding processes.

(CAG) management says the new technologies will eliminate the need for manual verification and lead to shorter queuing times and increased flexibility through usage of the self-service kiosks.

“Passengers can expect to pass through the various touch points more smoothly and stress-free, giving them more time to enjoy the facilities,” (CAG) Executive VP Air Hub & Development, Yam Kum Weng said.

(CAG) speculates the new technologies will also boost long-term growth, which has slowed at Changi over recent quarters. The new systems are billed to bring both time saving and lower operating costs for tenant airlines, with some -40% less processing costs compared to other terminal operations.

However, the lack of direct SkyTrain access to the other Changi terminals has seen local low-cost carriers Scoot (SCT) and Tigerair (TGR) hold back on support for the new facility. Transit passengers will need to take buses from T4 to other departure points, something Scoot (SCT) (CEO), Campbell Wilson was highly critical of last year.

October 2015: News Item A-1: Tiger Airways Holdings reported a -S$12.8 million/-$8.93 million second quarter 2016 net loss, down -93% from a -$143 million loss in the year-ago period.

TigerAir Singapore (TGR) said the results were due to better performance in overall airline operations, and the lack of special provision for aircraft leases and part sale of Tigerair Australia (TAU) that were included in last year’s 2nd quarter (2Q) figures.

“We are encouraged by the narrowing of losses in a seasonally weak second quarter,” (TGR) (CEO), Lee Lik Hsin said.

Revenue rose +12.8% to $117 million, while expenses increased +2.4% to $125 million, partly due to higher maintenance charges, higher aircraft rentals, aircraft depreciation, and appreciation of the USA dollar against the Singapore dollar.

The operating loss narrowed to -$7.3 million compared to a -$19.8 million operating loss in the prior-year quarter.

Overall, Tigerair Group traffic rose +1.1% alongside an improvement in load factor of +1.6% and a drop in fuel costs of -36.8%, compared to the previous year’s figures.

Yield rose +8.2% and the group also saw lease rental income of +$3.75 million during the quarter, mainly from aircraft and engine leasing to Tigerair Australia (TAU) and Tigerair Taiwan (TTW).

At the end of 1st half (1H)) 2016, Tigerair (TGR) saw overall positive cash flows of +$11.7 million from its core operations. However, the losses come following modest profits at the end of last financial year, and a smaller overall loss in 1st quarter (1Q) 2016.

Lee said (TGR) would be “working hard to deliver further improvements” in coming months.

News Item A-2: "SIA Subsidiaries to Increase Route Sharing" by (ATW) Jeremy Torr, October 20, 2015.

The Singapore Airlines (SIA) group is consolidating its network among its subsidiaries, with long-haul low cost carrier (LCC) offshoot, Scoot (SCT) adding one of its Boeing 787s to an existing Tigerair (TGR) schedule to Guangzhou, China.

Tigerair (TGR), the regional (LCC) subsidiary of (SIA), currently operates a single daily flight from Singapore's Changi Airport to Guangzhou Baiyun International using Airbus A320 aircraft. From January 2016, Scoot (SCT) will add a parallel 787-9 service to the route to "jointly serve the market more efficiently," Tigerair (TGR) (CEO), Lee Lik Hsin said.

The route sharing announcement follows (SCT)'s plans to take over (SIA)'s Jeddah service from next year, and the imminent replacement of a 4x-weekly, SilkAir (SLK) ((SIA)'s regional full-service subsidiary) schedule to Hangzhou with a new 5x-weekly, Scoot (SCT) service, again using the long-haul carrier's 787s.

(SCT) Head of Commercial, Steven Greenway said that (SCT) was looking to expand to at least six new destinations in coming months, partly as a result of "much better coordination" between the (SIA) subsidiaries. The move also underlines the commitment given by (SIA) Chairman, Stephen Lee recently to promote a "progressive stepping up [of Scoot's (SCT)] co-operation with Tigerair (TGR)" to provide what he described as a "win-win" situation for both carriers (and their home hub at Changi Airport).

Both Scoot (SCT) (CEO), Campbell Wilson and Tigerair (TGR)'s Lee have flagged increasingly close ties between the two carriers, with Lee noting the move would also enable (TGR) to redeploy its current resources for expansion to new destinations.

There is also further consolidation to come; (TGR) added that the two carriers were currently "finalizing a similar arrangement for another route."

November 2015: News Item A-1: "Asia-Pacific Low Cost Carrier (LCC)s Weigh Costs vs Paybacks for Aircraft Mods" by (ATW) Editor, Karen Walker, November 4, 2015.

Revenue-generating numbers touted by Original Equipment Manufacturers (OEM)s for airliner cabin modifications are not necessarily produced in reality, a senior executive at Singapore-based low-cost carrier (LCC) Tigerair (TGR) cautioned.

Speaking as a panelist at the Aviation Week Network Maintenance Repair & Overhaul (MRO) Asia-Pacific Conference in Singapore, Tigerair (TGR) Managing Director & Chief Operations Officer (COO), Ho Yuen Sang said the real question on cabin re-configurations was whether there would be a return on the investment.

Sang was responding to an audience question about the Space-Flex cabin modification being offered by Airbus (EDS) for A320 family aircraft. The mod adds an extra row of 6Y economy seats by using space at the back of the aircraft and reducing the rear galley space.

Tigerair (TGR), a Singapore Airlines (SIA) subsidiary, operates a fleet of A320s. But Sang pointed out that six extra seats does not necessarily mean six extra passengers. “On paper, it looks great,” Sang said of Space-Flex. “But it’s six more seats, not six more passengers. The question is what is the return? Can you sell those seats? That’s why there will always be a difference between the numbers [of the (OEM)] and the numbers of the airline.”

Sang also explained that Asia-Pacific (LCC)s also operate differently from European (LCC)s.

“For European (LCC)s, the average flight is one-and-a-half hours, but in this region one-and-a-half hours gets you nowhere, so you need to have carts for food. And duty free is big in Asia (the Chinese buy everything on the duty free cart). But SpaceFlex means you have no room for duty free and food carts,” Sand said,

Another panelist, Ang Chee Keong, Head of Engineering at Jetstar Asia (JSA), another Singapore-based (LCC), added that the payoffs of some mods were more obvious than others.

“I don’t like to put things on aircraft just for the sake of it. I think you can see a good case for things like Sharklets (fuel-saving wing extensions),” he said.

“Jetstar (JSA) was talking about getting new aircraft and putting 186 seats on them versus 180 on our existing aircraft, but then you have a fleet where some aircraft have 180 seats and some have 186 seats. What if one of the [higher seat capacity] aircraft goes down - - what do you do about accommodating those extra six passengers [on lower seat capacity aircraft]? So for our A320neos, the configuration will be 180 seats with SpaceFlex.”

News Item A-2: "For Asia-Pacific (LCC)s, (MRO) is not Low Cost" by (ATW) Karen Walker, November 5, 2015.

Being a low-cost carrier (LCC) does not mean getting low-cost maintenance, a group of executives with Singapore-based (LCC)s agreed.

Speaking as panelists at the Aviation Week Network Maintenance Repair & Overhaul (MRO) Asia-Pacific conference in Singapore, executives from three airlines (Jetstar Asia (JSA), Scoot (SCT), and Tigerair (TGR)) named their top priorities in what they look for in a (MRO) provider.

(JSA) Head of Engineering, Ang Chee Keong, (SCT) Head of Engineering, Desmond Chew, and (TGR) Managing Director & Chief Operations Officer (COO), Ho Yuen Sang listed strong safety culture, reliability and responsiveness, when things go wrong among their must-haves.

“Simplicity is important for a low cost carrier (LCC), it’s essential not to make things too complicated,” Keong said. “And we have a strong safety culture, so we look for (MRO) partners with similar culture. There’s no such thing as low-cost maintenance”

Chew also listed safety culture as a top priority. “Just because we are a low cost carrier (LCC) does not mean everything we do has to be low cost. Safety is first.”

The executives noted that (MRO) costs in Singapore were becoming more expensive, while it was not possible to raise ticket prices in line with those increased costs. Keong said (JSA) was looking at potential options among (MRO) providers in other parts of Asia with lower labor costs, but (SCT)’s Chew pointed out that the cost of flying an airplane to an overseas (MRO) base for maintenance could outweigh any savings. “We always factor in the fuel costs of flying a plane to an overseas station to see if it makes economic sense. There’s a lot of considerations when deciding whether to work locally or overseas,” Chew said.

(TGR)’s Sang said another consideration in (MRO) provider selection was whether or not to go with an Original Equipment Manufacturer (OEM). “This is a big issue facing the industry. A lot of people are being squeezed out because they don’t have the [new aircraft] data, so you have no choice but to go to the (OEM). Third parties just don’t have the information, capabilities and data.”

Sang added that it was critical that an (MRO) provider understood the impact of delays in an airline’s schedule when things go wrong. “Some (MRO)s don’t understand that they have to support our network because if something bad happens, that delays an aircraft by a day, that affects four flights and maybe 1,000 people and that is not a one dollar impact. That goes to the (CEO),” Sang said.

A good (MRO) provider, Sang said, is a partner that “rises to the occasion” when there is trouble.

December 2015: News Item A-1: Tigerair Singapore (TGR) has made Lucknow (LKO) its 6th destination in India with the launch of 3x-weekly flights from Singapore (SIN) on December 3. The 3,747 km route will be flown on Tuesdays, Thursdays and Sundays by (TGR)’s 180-seat A320s.

News Item A-2: Singapore’s Changi Airport will increase its international low-cost carrier (LCC) flights with the introduction of Jetstar Asia (JSA) services to Indonesia and Tigerair (TGR) services to India from early December.

(JSA) has introduced a new 3x-weekly schedule to Indonesia’s Sumatra (PLM) from Changi. This will be the only (LCC) service flying direct between the 2 cities. The schedule will use Airbus A320 aircraft, and adds to (JSA)’s recent introduction of a Changi to Pekanbaru schedule.

The other Singapore-based (LCC) (Singapore Airlines (SIA) subsidiary, Tigerair (TGR)) has concurrently introduced a new Changi to N India service flying to Lucknow (LKO). The 3x-weekly service will also use Airbus A320 aircraft, and will be (TGR)’s 6th Indian destination.

Changi has seen a significant increase in its (LCC) traffic in recent months, which is “boosted by more passengers opting to travel by (LCC)s following a period of depressed demand,” according to the airport.

In September, Changi reported its highest ever passenger figures achieved in a single quarter at 14.3 million passengers.

January 2016: "Singapore Airlines (SIA) Raises Offer for Tiger (TGR) Buyout" by (ATW) Jeremy Torr, January 5, 2016.

Singapore Airlines (SIA) has raised and extended its buyout offer to Tiger Airways (TGR) shareholders following protests by a shareholder activist group. (SIA) has offered a nearly +10% increase per share of S$0.04 to $S0.45/$0.32, and has also extended the offer deadline to January 22 from the original cutoff date of December 28, 2015.

The increased offer comes after the Securities Investors Association Singapore (SIAS) protested the original offer price was too low. “This offer, the minority [shareholders] feel, is not reasonable,” said (SIAS) (CEO) David Gerald following the announcement of the original offer.

The new offer now prices the Singapore-based Tigerair (TGR) group at some S$1.125 billion, and represents a price premium of >49% over the one-month volume weighted average price per share, (SIA) said. “We are providing Tiger Airways (TGR) shareholders certainty with the new offer price of S$0.45,” said (SIA) (CEO) Goh Choon Phong, adding this latest offer “will not be revised further.”

(SIA) did, however, leave open the possibility of another cutoff extension from the end-January date, adding the offer could be finalized on “such later date(s) as may be announced.”

The new offer will only stand if (SIA) manages to convince enough minority shareholders to sell at the new price; the offer is conditional on the carrier holding 90% of the stock by the offer close date. If the offer is accepted, (SIA) has said it will take Tigerair (TGR) private.

Goh said he was “optimistic” the new offer would be considered favorably by the shareholders who had balked at the 1st offer.

(SIA) currently controls or has agreements to acquire some 75% of (TGR)’s stock. Its last significant buy of (TGR) shares was in 2014, when it paid >S$0.50 per share for an extra +16% stake.

February 2015: News Item A-1: Singapore Airlines (SIA) group reported a net profit rise of +35% to +S$275 million/+$196 million for the 3 months through December 31, 2015, compared to a net profit of +S$202.6 million in the year-ago quarter. (SIA) cited lower fuel costs and a significant performance improvement from some of its subsidiary carriers for the profit increase.

The higher profit was achieved despite revenue dropping by -3.9% due to weaker yields in the period, which is (SIA)’s fiscal 3rd quarter. Passenger yields fell -4.6% and cargo yield declined by -13.5%.

Cost savings were enough to overcome the revenue slide, however. Net fuel costs were down by -S$354 million, with lower oil prices offset somewhat by hedging losses of -S$72 million and -S$77 million in losses related unfavorable exchange rate movements.

The group’s operating profit more than doubled to +S$288 million for the quarter, with most of its subsidiaries boosting their results. The parent airline led the way with an operating profit of +S$181 million, thanks mainly to the fuel cost savings. Its passenger traffic rose +1% year-on-year with capacity dropping -1.2%.

Long-haul, low-cost carrier (LCC) subsidiary Scoot (SCT) achieved an operating profit of +S$18 million, reversed from a loss of -S$17 million a year earlier. (SIA) says this was Scoot (SCT)’s strongest-ever quarterly result. Although (SCT) grew capacity by +34% in the quarter, it boosted passenger traffic by +37%.

SilkAir (SLK) recorded an operating profit of +S$33 million, up from +S$18 million. Its capacity growth of +9.5% was not matched by traffic growth of +8.5%, however. Tiger Airways (TGR) also improved its operating profit to +S$9 million, versus +S$4 million in the same period in 2014.

(SQC) Cargo operating profit dropped to +S$2 million compared to +S$17 million a year earlier.

March 2016: News Item A-1: Tigerair (TGR) plans to launch a new 4x-weekly service from Changi Airport to Sunan Shuofang International Airport in the tier-two, Chinese city of Wuxi. The Airbus A320 service will begin at the end of April 2016.

Wuxi, capital of Jiangsu province, is close to another key city, Suzhou (both key destinations in the Yangtze River Delta Economic Zone).

Tigerair (TGR) (CEO) Lee Lik Hsin said the new route would enhance connectivity and convenience to business (C) customers traveling to the China to Singapore Suzhou Industrial Park. The Wuxi and Suzhou urban regions have a combined population of 17 million, with total Gross Domestic Product (GDP) of >RMB2 trillion.

(TGR) offshoot Tigerair Taiwan (TTW) is also looking to expand its international services with a 4x-weekly service from its home base at Taipei Taoyuan International, Taiwan, to Kota Kinabalu International Airport, West Malaysia, using A320 aircraft.

The latest Tigerair Taiwan (TTW) route comes on the heels of 2 recent additions to its network. It launched Japanese destinations Fukuoka and Nagoya from Taipei Taoyuan to add to its existing schedules to Okinawa, Osaka Kansai, Tokyo Haneda, and Tokyo Narita.

News Item A-2: "Scoot, Tigerair to Merge, Expand Reservation Systems" by (ATW) Jeremy Torr, March 24, 2016.

Singapore-based long-haul, low-cost carrier (LCC) Scoot (SCT) and regional (LCC), Tigerair (TGR) will finalize a merger of their reservations systems by the end of (1H) 2016, (SCT) (CEO) Campbell Wilson said.

“This will make Tiger (TGR) our biggest partner,” he said. He said the 2 (LCC)s already shared ground handling and other operational facilities and costs, and that a more complete integration of ticketing systems would bring a greater ability to capitalize on potential opportunities across the two carriers.

Both (LCC)s are subsidiary airlines of parent Singapore Airlines (SIA), which Wilson says is working to develop long-term working structures, that are shared between the 2 carriers.

Wilson noted the need for a strong distribution system in Asia is essential, as many travelers still prefer to use travel agents to book their travel.

Wilson added that (SCT) would expand its fleet of 10 Boeing 787s with another 10 787s by the end of July 2019, which would enable it to add routes to India, China, and NE Asia. “In (2H) 2016, we look to [begin] new routes to China, Japan, and Korea, but will make sure our [ticket] distribution systems are suitable, so we can keep our high load factors up,” he said.

News Item A-3: In its ongoing efforts to bolster aviation safety, the Civil Aviation Authority of Singapore (CAAS) has published new rules to improve the tracking of Singapore-registered aircraft.

The new rules will apply to all Singapore air operators operating passenger aircraft of >27,000 kg and carrying >19 passengers, as well as cargo aircraft of >45,500 kg. These aircraft will be required to establish tracking capabilities that would enable the airlines to know the location of their aircraft at least every 15 minutes, throughout the entire duration of the flight.

The (CAAS) will work closely with Singapore air operators to manage the transition to these new rules. From July 1, 2016 onwards, airlines will be required to track their aircraft either manually or automatically. From November 8, 2018 onwards, only automatic tracking will be permitted.

This move is consistent with the International Civil Aviation Organization’s (ICAO) plans to require a 15-minute standard for normal flight tracking(*) by November 2018. Also, we will impose this requirement on our airlines flying over any area, which is more comprehensive than the (ICAO) requirement, which is only for aircraft flying over oceanic areas.

Director-General of the (CAAS) Mr Kevin Shum, said, “The safety of the traveling public is always our priority. The (CAAS) has worked closely with the industry to advance the implementation of the latest rules on enhanced aircraft tracking. When fully implemented, our airlines will have added assurance of the whereabouts and safety of their aircraft operations throughout their network.”

Local airlines have expressed their support for the move. Singapore Airlines (SIA) Acting Senior VP Flight Operations Captain C E Quay, said, “We are supportive of the efforts to improve flight tracking capabilities. (SIA) is already in compliance with the (CAAS)' new rules, as we have enhanced flight tracking capabilities that give us detailed oversight of our global flight operations.”

Managing Director & Chief Operating Officer (COO) of Tigerair Singapore (TGR), Mr Ho Yuen Sang, added, “We have been working closely with the (CAAS) in order to achieve the highest level of surveillance and tracking for our aircraft. We are confident that these industry-leading regulations represent a significant step forward in aviation safety which is our top priority.”

(*) This refers to aircraft tracking during normal flight operations, i e not during abnormal or distress phases.

May 2016: News Item A-1: Singapore-based low-cost carrier (LCC) Tigerair (TGR) reported a net profit of +S$7.9 million/+$5.8 million for the 4Q 2016, which ended March 31. This was reversed from a net loss of -S$18.8 million in the year-ago period.

Quarterly revenue rose +4.1% to S$179 million for the (4Q) 2016 period. This brought an operating profit of +S$14.5 million for the quarter, reversed from an operating loss of -S$2.3 million year-on-year. The company said it was “heartened by these results which indicate that the turnaround of Tigerair (TGR) is largely achieved.”

(TGR) said a S$9.6 million (5.5%) cut in fuel costs, combined with a higher load factor (up +3.5% from the year-ago period), helped boost the profit margin, despite yields staying flat.

(TGR) saw a significant increase in aircraft leasing income from S$2.78 million to S$5.8 million during the (4Q) 2016 period, but took a -S$37.9 million loss on planned disposal of aircraft during the same period.

For the full-year (FY) 2016, (TGR) reported an operating profit of +S$14.6 million, reversed from an operating loss of -S$39.9 million a year ago.

(FY) 2016 net profit was a modest +S$0.3 million, but nonetheless signaled a significant turnaround when compared to a net loss of -$264.2 million in (FY) 2015. Financial year revenue increased +3.8% to S$25.5 million.

The management said it is “looking forward to the full integration into the Singapore Airlines Group [becoming] a wholly owned subsidiary of Singapore Airlines (SIA) and a core part of its portfolio of airlines.”

With a fleet of >20 Airbus A320 aircraft, Tigerair (TGR) services 41 regional destinations across Asia including Singapore, Bangladesh, China, Hong Kong, India, Indonesia, Macau, Malaysia, Maldives, Myanmar, Philippines, Taiwan, Thailand, and Vietnam.

News Item A-2: "Singapore’s Scoot, Tigerair to Merge into Single (LCC) Holding Company" by (ATW) Jeremy Torr, May 19, 2016.

Singapore Airlines (SIA) plans to combine the management of its low-cost carrier (LCC) subsidiaries Scoot (SCT) (long-haul) and Tigerair (TGR) (regional) into a single body.

(SIA), the Singapore flag carrier has formed a new subsidiary called Budget Aviation Holdings, which will own and manage both (LCC)s following the recent de-listing of Tigerair (TGR) from the Singapore Stock Exchange.

The new entity will be headed up by Lee Lik Hsin, who was appointed as (CEO) of Tigerair (TGR) in early 2014, following a series of poor results. Scoot (SCT) founding (CEO) Campbell Wilson will “return to (SIA) in a senior position,” (SIA) said.

(SIA) (CEO) Goh Choon Phong said the move to a new (LCC) operating structure was made on the back of (SIA), the parent company’s buy-back for the majority of Tigerair (TGR) shares in late March 2016. It follows a preliminary agreement between the 2 (LCC)s to implement “wide ranging cooperation” across various marketing functions.

“We launched our general offer so that we could fully realize commercial and operational synergies between Scoot (SCT) and Tigerair (TGR),” Goh said.

Wilson recently said the carrier is “definitely looking to expand [more] services westward,” following its recent adoption of the Singapore to Jeddah route, previously operated by (SIA).

The new holding company structure “will allow for the [full] integration and sharing of key functions, such as in sales and marketing, Information Technology (IT), planning and operations,” (SIA) said.

Goh noted the new holding company structure “will drive a deep integration of our low-cost subsidiaries, which are important parts of our portfolio strategy in which we have investments in both the full-service and budget aspects of the airline business.”

In the short term, both carriers will maintain their individual branding (Goh said recently that “we would not rule out [a full merger]. But for the moment, we do see a benefit in [both (LCC)s] having their own separate identities.”)

A full merger would also demand a revision of a slew of landing rights and air operator’s certificate (AOC) permissions for the combined carriers, which could pose some anti-competition issues in Southeast Asia’s already crowded (LCC) market.

June 2016: "Value Alliance: the Hubs, Focus Airports and Routes Where Alliance Members Might Gain Synergies", by (CAPA), June 20,2016.

Since the Value Alliance was announced in May 2016 as the 2nd low cost carrier (LCC) alliance, there has been industry interest about how and where the alliance can deliver synergies. The 9 initial members of the Value Alliance include Cebu Pacific (CEB), Cebgo (SRQ), Jeju Air (JJA), Nok Air (NKA), NokScoot (NSC), Scoot (SCT), Tigerair Singapore (TGR), Tigerair Australia (TAU) and Vanilla Air (VNL).

Tokyo Narita is the alliance hub with more service from Value members (5) than any other. But Asia's most popular airports for Value members are not where the alliance has a local member: Taipei and Hong Kong.

In terms of frequency, Manila and Bangkok Don Mueang have the most Value flights, reflecting their local membership there. The local Value member based at an airport typically dominates the hub, accounting for >90% of Value flights. That creates a strong feed network for other members but also (potentially) competition that may be too strong. Members overlap on only 6 routes so far and their combined frequency gives them a scale advantage against non-Value (LCC)s. Although it is premature to evaluate the effectiveness of the alliance (new members will join and existing members will grow) this analysis looks at where there are network opportunities for cooperation.

* Airports most frequented by Value Alliance are not member hubs.

There are services from 3 or more members of the Value Alliance at 15 airports in Asia. This includes Tigerair (TGR) and Scoot (SCT), which have the same ownership, but excludes Cebu (CEB) and Cebgo (SRQ), since (CEB) owns (SRQ). (TGR) and (SCT) are expected to merge, with only 1 brand surviving.

5 airports have services from 4 or more alliance members. The 2 most popular airports (Taipei Taoyuan (6) and Hong Kong (5)) are not local hubs for the Value Alliance. 3 airports have services from 4 Value members: Hanoi, Osaka Kansai, and Tokyo Narita. Only Tokyo Narita is a Value hub (served by Vanilla Air (VNL)), although Osaka Kansai is a growing focal point for (VNL) and in time, will likely become a hub.

Taipei is home to 2 (LCC)s: Tigerair Taiwan (TTW) and V Air (VAX) (but neither is a member of Value (or of U-FLY)). (TTW) is 10% owned by the Tigerair Holdings but is not a member, and is expected to be wholly under control of the China Airlines (BEJ) Group, once the expected Tigerair (TGR)/Scoot (SCT) merger occurs. V Air (VAX) is owned by TransAsia (FSH) and has no partnership affiliations. (FSH), a full service regional airline is not a member of a global alliance.

It is not without coincidence that the most commonly served airports are in Northeast Asia. Taipei and Hong Kong are accessible from both SE Asia and northern NE Asia with narrow body aircraft, making the 2 airports accessible for all members. Only Jin Air (JIN) (not an alliance member) is a NE Asian wide body (LCC) operator, so NE Asia’s (LCC)s are restricted from flying deep into SE Asia.

In contrast, SE Asia has 3 wide body (LCC) operators that are belong to an alliance: Scoot (SCT), NokScoot (NSC) and Cebu (CEB). Cebu (CEB) can access NE Asia with narrow body aircraft, although it sometimes uses wide body aircraft on trunk/congested routes. There are services from 3 Value members at 10 airports, and all but 3 are Value member hubs.

* Measured by frequency, most services are at Value alliance member hubs.

This analysis next looks at the largest airports in the Value Alliance based on weekly frequencies. This analysis comprises the 21 largest airports (the 20th and 21st largest have the same number of frequencies). The 6 largest airports are all member hubs.

The 4 largest (Manila, Bangkok (DMK), Singapore, and Cebu) are significantly larger than the rest. Of the 10 largest airports based on member frequency, only 2 (Hong Kong and Taipei Taoyuan) are not member hubs.

* Largest Value Alliance airports are dominated by their members.

13 of the region's largest airports have >7 daily flights from alliance members. Each is dominated by its local alliance member. At the 2 largest (Manila and Bangkok (DMK)) the local alliance hub member operates 98% and 94% of all flights by the alliance. In other words, of all Value flights at Manila, Cebu (CEB) operates 98% at Manila, while NokScoot (NSC) and Nok (NKA) operate 94% of all Value flights at Bangkok (DMK).

A Value Alliance Member typically accounts for >90% of alliance flights at its home. 4 airports are around the 80% mark, while there is no Value Alliance member operating flights at Bangkok (BKK) (they instead operate out of Bangkok (DMK)).

* Value Alliance members overlap on 6 routes.

There is a possibility that the Value Alliance could help (LCC)s gain scale on routes, especially where due to infrastructure constraints ( slots, air traffic, bilaterals) organic growth may not be an option.

In the week commencing June 12, 2016 the Value Alliance members overlap on only 6 routes. This excludes overlap only between Scoot (SCT)/Tigerair (TGR) (owned by the same company and expected to be merged) and Cebu (CEB)/Cebgo (SRQ) (Cebu (CEB) owns Cebgo (SRQ)). (CEB) has the most overlap (4 routes) followed by Jeju (JJA) (3), Tigerair (TGR) and Scoot (SCT) (2) and then Vanilla Air (VNL) (1).

No route has >2 operators. The frequency split varies between relatively even and lopsided. As this analysis is focused on the opportunity to offer more flights, frequency (not seats) is considered. The use of wide bodies at Scoot (SCT), and sometimes Cebu (CEB), would alter a capacity share analysis.

* Value Alliance opportunity to link NE Asia with SE Asia.

The geography of east Asia means that (LCC)s cannot serve the entire region with existing narrow body technology, although (LCC)s in some markets can come close. The final analysis in this report considers the ability of the Value Alliance to link Northeast Asia with SE Asia, and vice versa.

6 of the members have routes between NE and SE Asia. Vanilla Air (VNL) operates wholly within NE Asia but is examining a Taipei base to use 5th freedom rights to fly to SE Asia. Cebu Pacific (CEB) has the greatest number of flights between Northeast and Southeast Asia. This is probably unsurprising given the Philippines' geographical position, which is more between the regions. Tigerair (TGR) and Scoot (SCT) have approximately 10 routes between the regions.

Evaluating the opportunity is complex: routes are often to points where there is no service from another Value member, or there is limited frequency, and it may not enable a same-day connection, or a connection within reason. Some connections would be circuitous. But as noted earlier, it is too soon to evaluate the opportunity for the alliance.

* Outlook: long haul operator, member with central geography, could bring opportunity but also competition.

The Value Alliance faces the same conundrum as full service alliances: adding members brings opportunities but also competition. A member that is more central between the regions (such as in Hong Kong or Taiwan) could enable more links and connection opportunities.

Alternatively, that member may prefer to serve points on its own. (As (CAPA) has previously recorded, some Value members are expected to work with HK Express outside the (LCC) alliance organizations). More long haul operations could mean that an airline gains access to the strong regional hub of a partner in a different part of Asia. Alternatively, this could preclude cooperation between other members.

The opportunities for the Value members today are varied, but they do exist. With time, the synergies within the alliance should become greater. Most critically, this is all being developed with minimal cost, unlike the high joining and membership fees of full service alliances. While the gains may not seem as significant, neither are the costs.

Conclusion: As (CAPA) has previously concluded of the alliance:

* Joining the Value Alliance should be an appealing option for Asia’s independent (LCC)s since the cost and risk of membership are small. At the May 16, 2016 launch event, executives representing the founding members stressed that the concept is to add incremental passengers without incurring additional cost or adding any complexities. The members said that they would not have joined, if they had not been able to retain their business models.

* The main objective is for each member to increase their brand awareness across Asia-Pacific. The main objective is for each member to increase their brand awareness across Asia-Pacific and augment their distribution network through cross-selling. The alliance members pointed out that most of their brands are not well known outside their respective home markets.

* The members expect that the alliance will only generate a small increase in their interline traffic volumes (at least in the initial phase).

* Interline traffic for most members is a very small part of their overall business (for some it has even been non-existent) and most members do not expect that interline traffic will ever account for a large share of their overall traffic.

* The Value Alliance essentially offers its members a nothing-to-lose alternative for attempting to increase transit traffic and attract passengers in new markets who are now flying with other airlines. Even if the alliance only brings each member a +1% incremental gain in passenger traffic, it can be deemed a success, given the limited cost and the simplicity of the new offering.

* Asia’s independent (LCC)s need to evolve and embrace new alternatives if they are to maintain their growth trajectory and succeed in an increasingly competitive marketplace.

October 2016: News Item A-1: On October 14, Airbus (EDS) celebrated the delivery of its 10,000 aircraft, (an A350-900 for Singapore Airlines (SIA) out of a total order for 67). The aircraft is to be used to launch (SIA)'s new non-stop services between Singapore and San Francisco later this month.

The 10,000th Airbus delivery comes as (EDS) achieves its highest level of production ever and is on track to deliver at least 650 aircraft this year from its extensive product line.

(SIA) placed its 1st order with Airbus (EDS) in 1979 and over the years (SIA) and its subsidiaries have ordered every successive model produced by Airbus (EDS) (for instance, (SIA) operates the A330, A350-XWB and A380, while its regional subsidiaries SilkAir (SLK) and TigerAir (TGR) operate aircraft from the single aisle A320 family).

December 2016: Recaro has a Tigerair (TGR) order to supply "3530Swift" economy (Y) class seats for 20 Airbus A320neos.

January 2017: TigerAir Singapore (TGR) in 2016 had 5.10 million passengers +0.6%, 9.44 million (RPK)s (2015: 9.49 million (RPK)s; -0.6%; 83.0% LF (2015: 82.4% LF).

Out of service.


Click below for photos:
TGR-737-800 VH-VUB-2017-11.jpg
TGR-A320 - 2013-01
TGR-A320 - 2013-08
TGR-A320 - 2016-04.jpg
TGR-A320 - WITH SHARKLETS - 2013-11
TGR-A320-232 VH-VNB Tigermoon-2017-04.jpg


2 A319-132 (V2524-A5) (3757, 9V-TRA, 2009-01; 3801, 9V-TRB, 2009-02), (TCI) LSD. LAST TWO 3757; & 3801; PHASED OUT AND STORED AT ALICE SPRINGS 2014-08. RETURNED TO SERVICE 2015-07. 144Y:

37 ORDERS (2018-02) A320neo (PW1100G):

6 A320-200, (GEF) LEASED 2013-05.

26 A320-232 (V2527-A5) (2195, /04 9V-TAB, (TCI) LSD; 2204, /04 9V-TAA, (GAX) LSD; 2325, NTU; 2331, /04 9V-TAC; 2340, /04 9V-TAD; 2724, 9V-TAE, 2006-03; 2728, 9V-TAF, 2006-04; 2906, 9V-TAG, 2006-10; 2952, 9V-TAH, 2006-11; 2982, 9V-TAI, 2006-12; 3986, 9V-TAK, 2009-08; 4053, 9V-TAL, 2009-10; 4181, 9V-TAM, 2010-01; 4210, 9V-TAN, 2010-02; 4421, 9V-TAO, 2010-09; 4462; 4561, 9V-TAU, 2010-12; 4645, VH-VJR; 4874, 9V-TAY, 2011-10; 4879, 9V-TAZ, 2011-10). 180Y.

2 A320-232 (V2527-A5) (3275, VH-VNC, 2007-10; 3296, VH-VND, 2007-11), FOR TIGER AUSTRALIA (TAU) OPERATIONS. 180Y.

2 A320-232 (V2527-A5) (5188, RP-C6319; 5228, RP-C5319) LEASED TO SEAIR (SRQ) 2012-07. 180Y.

2 A320-232 (V2527-A5) (5662, PK-RMV; 5697, PK-TRK), LEASED TO TIGERAIR MANDALA (MND) 2013-07. WITH SHARKLETS. 180Y.

1 A330-232 (4445, 9V-TAP, 2010-09).


Click below for photos:

Hsieh is former Chairman at Singapore’s United Overseas Bank; he has been (CEO) of Singapore Exchange and ex-President of Singapore’s sovereign Temasek Holdings.

Bill Franke is the Managing Partner of Indigo Partners LLC, a private equity fund focused on air transportation investments. The fund currently has major investments in Volaris Airlines (VLS) (Mexico), Wizz Air (WZZ) (Hungary) and Frontier Airlines (FRO) (USA). During Bill’s business career he has been the Chief Executive Officer (CEO) of a Fortune 500 forest products company, which he re-positioned strategically, tripled its revenues and achieved record profits, before merging it with another company at the industry’s highest per ton valuation; Chairman of the Executive Committee of a large regional bank whose management he restructured; (CEO) of a large USA convenience store company, which he restructured; and, from 1993 to August 2001, (CEO) of America West Airlines (AMW) (now American Airlines (AAL)), which he managed through a bankruptcy into an airline that from 1994 to 2000 had the highest (EBITDAR) margins of the major USA airlines and won 2 "J.D. Power" awards for its service. Bill was Managing Partner of Newbridge Latin America, a private equity fund focused on Latin America, which made investments in Mexico, Brazil, Colombia and Argentina in a variety of businesses including retail, manufacturing and insurance. Newbridge was wound up in 2012 on sale of its last investment. Bill served as the founding Chairman of the Airplanes Group, Ltd., a US$5 billion aircraft finance vehicle created from the aircraft portfolio of the (GPA) Group plc, the Irish aircraft leasing company, and supported by (GE) Capital Aviation Services (GECAS) (GEC). He was involved in the 1998 acquisition of (GPA) (then renamed AerFi Group) by Texas Pacific Group and served on AerFi’s board of directors until it was sold in 2000. Also, along with an investment group led by David Bonderman, Bill was a pre-(IPO) investor in Ryanair (RYR) and a Founder of Hotwire, the travel internet site. Bill was the Founding Chairman of Tiger Airways (TGR) (Singapore), was the Chairman of Spirit Airlines (SPR) (USA), serves as Chairman of Wizz Air Limited (WZZ) (Hungary), is a director of Volaris (VLS) (Mexico), and is the Chairman of Frontier Airlines (FRO) (USA). In addition, he has served on several public company boards of directors in a variety of industries.

Bill was born in Texas and raised in Latin America. He has undergraduate and graduate degrees from Stanford University and was awarded an honorary Ph.D. from Northern Arizona University, whose business college is named after him.


Lee Lik Hsin was formerly (CEO) of TigerAir (TGR) in early 2014.







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