Tigerair bids farewell to two A320 aircraft worth $71m

It will see an $8m loss on disposal.

Tigerair parting ways with two Airbus A320 aircraft, as the airline has entered a sale and purchase agreement with Stellar Aircraft Holding 1 Limited.

According to Tigerair’s news release, as at 31 March 2015, the two aircraft has been marked for sale and their carrying value had been written down to $71m.

Upon completion of the sale process, Tigerair will see an $8m loss on disposal.

Tigerair reports that proceeds from the sale will channeled towards funding its debt related to the financing of the aircraft.

Assuming that the sale is completed by the end of last financial year, Tigerair’s net cash position would have improved from $3, to $66m as at 31 March 2015.

The airline asserts that the completion of the sale process is targeted around 2Q16. 

“This sale allows Tigerair to reach an optimal fleet size, in line with its turnaround strategy,” the airline states.