Germany's Blue Wings suspends operations, Tiger launches IPO
Germany’s Blue Wings has suspended operations due to financial difficulties, with the carrier noting it is holding a “discussion over our future economic sustainability”.
It is the carrier's second stoppage in less than 12 months. Regulator, LBA, has now suspended Blue Wings’ licence, following the carrier’s announcement.
Last week, Blue Wings stated it was again facing serious financial troubles, with the company seeking a new investor. The airline carried 1.1 million passengers in 2008 and generated sales of EUR154 million.
Tiger launches IPO
Tiger Airways launched its IPO on 13-Jan-2009, confirming plans to raise up to SGD246.8 million (USD178 million) through the sale of approximately 165.2 million shares at SGD1.65 (USD1.19) per share. The carrier expects the shares to commence trading on the Singapore Stock Exchange on 22-Jan-2010.
Approximately USD178 million from the fund raising exercise will be used to finance aircraft orders, while USD36 million will be allocated to pay down short-term loans, while the carrier is considering using USD7 million to establish a new carrier or new bases.
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Selected LCCs daily share price movements (% change): 13-Jan-2010