Tigerair Mandala suspension begins needed consolidation to Indonesian & Southeast Asian LCC sectors

Tigerair Mandala has announced it is suspending operations from 1-Jul-2014, bringing to a close Singapore-based Tigerair Group's highly unprofitable foray into other Southeast Asian markets. Tigerair is now turning its focus to its original Singapore operation, which has a stronger position and outlook but also faces short-term challenges.

Tigerair Mandala has struggled since its Apr-2012 launch and had a weak outlook given its small size and lack of scale. Mandala's demise was inevitable after its two main investors decided against recapitalising the carrier and failed to find a buyer.

Mandala was by far the smallest of Indonesia's four low-cost players. It becomes the fourth Indonesian carrier but the first Indonesian LCC to suspend operations since the beginning of 2013.