Tiger Airways announced (06-Jan-2010) plans to raise up to SGD273 million (USD196 million) in its IPO, through the sale of 165 million shares valued at between SGD1.35 and SGD1.65, representing 30% of total shares. The pricing reflects a price-to-earnings ratio of 11.4 to 13.9 times its 2011 earnings forecast. The LCC plans to use the funds to support aircraft orders, pay off loans and establish new bases. Current stakeholder, Indigo Partners plans to sell 5.8% of its stake in the sale, while RyanAsia will also sell down some of its stake if the issue is oversubscribed. The carrier launched its investor roadshow for the IPO on 06-Jan-2010. [more - Dec-2009 prospectus]
Tiger Airways planning to raise USD196 million in IPO
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CAPA Asia Aviation Summit Day 1: Trump impact on aviation, long haul LCCs, future of Asian FSCs
The CAPA Asia Aviation Summit was held on 15/16-Nov-2016 at the Capella at Sentosa in Singapore. First off, BOC Aviation's Robert Martin and Indigo Partners' William Franke discussed the outlook for long haul LCCs, as well as the aviation implications from Donald Trump's election to US President. Malaysia Airlines CEO Peter Bellew gave a key presentation on the transformation of the airline and plans for its A380 fleet.
Panel discussions addressed the future of the full service airline model in Asia, the opportunities from big data, China's "One Belt, One Road" strategy, joint venture strategies, partnerships/alliances at LCCs.
Day one was capped off by a Gala Dinner with the CAPA Asia Aviation Awards for Excellence.
LCC Volotea Part 2: in a competitive space positioned between regional airlines and LCCs
Part 1 of CAPA's analysis of Spanish LCC Volotea highlighted its rapid growth, but noted that its load factor left room for improvement. The Spanish LCC flies almost two thirds of its seats in domestic Italy and France, but operates in a total of 12 countries and 66 airports across Europe. It concentrates on small and medium-sized airports, with Italy and France dominating its list of leading routes.
This second part of CAPA's report on Volotea looks at its generally favourable competitive position on its leading routes (it is the biggest airline on 15 of its top 20 routes). This positive competitive standing has been carried onto the majority of the 32 routes that Volotea has launched in the past year, although its low frequencies and very strong summer bias limit its appeal to business passengers and give it a leisure focus.
Volotea's average trip length sits between those of regional airlines and Europe's principal LCCs. This is evidenced by the fact that two of its most frequent competitors are Hop (Air France's regional airline) and Ryanair (Europe's leading LCC). Volotea's fleet strategy is now to replace its 125-seat Boeing 717s with 150-seat A319s. This will result in it butting up against LCCs more often.