Tigerair Australia to pause from growth – with possible A320 deferrals – as losses continue to mount

Tigerair Australia is taking a cautious approach to expansion as it focuses on trying to complete a turnaround. Prior promises to expand the fleet to at least 23 aircraft by 2018 are unlikely to be fulfilled; instead most or all of its remaining A320 orders could be deferred and converted into A320neos.

Tigerair Australia has made considerable progress since Virgin Australia took over a 60% stake in Jul-2013. But the LCC is still highly unprofitable and does not want to expand domestically or enter the international market until its position has improved.

The cautious approach to expansion is sensible given current market conditions in Australia. But it would come at the expense of pursuing strategic opportunities, including a potential tie-up with Singapore Airlines long-haul LCC Scoot.