Tiger Airways will roar back in 2013: CIMB

Stronger yields, higher fleet utilization and wider regional expansion are all in the cards for what could be the airlines' comeback year.

In fact, it could turn around its losses as early as 2HFY13 if management makes good on its promises to refocus on profitability and pursue its Asia expansion aggresively.

Here's more from CIMB:

Having restructured its operations in FY12, Tiger is back with a vengeance in FY13. We are expecting stronger yields supporting Australia, higher fleet utilization, and progress in regional expansion to turn losses into profits in 2HFY13. We see a credible turnaround story developing.

We are pleased with Tiger’s progress. We see a more structured organization, with clear strategies for its regional and domestic expansion. We expect higher fleet utilisation and stronger demand going forward. Tiger Singapore will sweat its aircraft by reducing its fleet from 21 to 19, but increasing seat capacity by 7% in the Northern Summer season. Tiger Australia will ramp up its daily flight sectors to 64 by September 2012. New deliveries coming on stream will be parked in Mandala (+5 A320s) and SEAIR (+3 A320s). Management stressed that returning to profitability is its priority now. In short, losses will narrow and Tiger could report profits in 2HFY13.

Following a change in management with new corporate processes in place, Tiger Australia is running more like a well-oiled machine. We expect Tiger Australia to be a major driver in FY13. Passenger yields are now stronger than pre-suspension days, growing 5.6% yoy to 8.45 Scts. Yields would have been stronger if not for lower ancillary revenue stream as demand for ancillary products and services are now lower as Tiger Australia is operating shorter haul flights compared to pre-suspension days. During the briefing, management emphasised that revenue maximisation will be the focus in Australia and it will not want to introduce overly discounted fares anymore.This means that Tiger’s business model will be more sustainable going forward and the overall industry yield environment will be healthier.

Follow the link for more news on

Tiger Airways

Also Read

Singapore Airlines Group sees 7.9% rise in September passenger volume

CAAS and WAI-SG partner to promote aviation careers for young women

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit