TigerAir has tried some aggressive expansion strategies, with the Singaporean Low Cost Carrier expanding across Asia and Australasia.
However, it seems that one unit of the airline – Tiger Mandala of Indonesia– isn’t performing, and after others sniffing around, and as of 1st July 2014 – Tiger Mandala is to cease operating.
Tigerair Airbus A320 at Hong Kong International Airport – Image GhettoIFE.
The shareholders of Tiger Mandala – Saratoga Investment Corporation, Tiger Air and other creditors have decided to cease further funding into the airline after no other parties wished to contribute to keeping Mandala alive.
Lee Lik Hsin, Group CEO of Tigerair states
“Mandala’s financial results reflect the challenges that it is facing in the dificult operating environment. The partners in Mandala have jointly come to the conclusion to cease funding the airline’s operations. Nevertheless, Indonesia remains an important market for us, and we will continue to maintain an active presence through Tigerair Singapore”
Mandala will continue to operate its scheduled services until its last flight RI545 to Hong Kong on 1 July 2014, after which all Tigerair Mandala operated flights will be cancelled. Tigerair and TigerAir Autraila will continue to operate as normal.
TigerAir will try to put passengers on alternative services where possible or offer to refunds on tickets.
However – it does show how tight the market is in the Low-Cost Carrier market in Asia, with airlines fighting for customers.
It could be an interesting fight to see who is the last airline standing in this race.