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Tiger Airways now has to deliver. So, who has the lowest costs?

21-Jan-2010

Tiger Airways Holdings’ IPO has to be considered a success in today’s difficult times. With 165.1 million shares offered, priced at SGD1.50, the heavily oversubscribed share issue this week raised SGD247.7 million, valuing the company at SGD781.3 million. Tiger shares will be listed on the Singapore Exchange on Friday, 22-Jan-2010. Based on the oversubscription level and the relatively small number of shares on the market, the shares would be expected to trade above SGD1.50 on the first day. [3257 words]

Unlock the following content in this report:

Subheadings:

  • Enthusiastic response, especially at home
  • The usual gloomy litany of airline risk
  • Getting the timing right; of luck and judgment
  • The beginnings: capital has been needed, but now in front in Singapore
  • The Market Outlook
  • Expansion the strategy: profitability to follow, hopefully
  • The Singapore Airlines, SilkAir and Singapore Inc relationships
  • “Transactions with interested persons”
  • Indigo Partners’ role in Tiger – and in Indonesia’s Mandala
  • Footnote: Tiger Airways vs. AirAsia – who is the lowest cost carrier?

Graphs and data:

  • Tiger Airways’ paw print: Destinations, at Jan-2010
  • AirAsia vs. Tiger Airways revenue and cost performance (US cents)
  • AirAsia vs. Tiger Airways Costs per ASK breakdown
  • Tiger Airways annual revenue: 2007 to 2009 (year ended 31-Mar)
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