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Tigeair seeks turnaround by clipping own wings
Publication Date : 03-05-2014
Tigerair is grounding eight planes and cutting unprofitable flights in an unprecedented move to turn its loss-making business around.
Battered by bruising competition, which has pushed the carrier into its biggest loss ever, Tiger-air will park the planes - about 15 per cent of its total fleet - until the end of March next year.
The decision to downsize comes about two months after the airline cancelled an order for nine single-aisle planes that were due to arrive this year and next.
There are just too many flights serving the region and not enough demand to fill seats, said group chief executive officer Koay Peng Yen during a media tele-conference following the release of Tigerair's financial results yesterday.
Tigerair lost $223 million in the year to March 31, compared with $45.4 million in the previous months. Its ventures in the Philipines and Indonesia have also not worked well.