Tiger Airways Holdings Limited announced (01-Nov-2010) that of the proceeds raised from the company’s IPO, SGD39.6 million (USD30.7 million) has been utilised to fund the acquisition of aircraft and associated aircraft pre-delivery payments. The utilisation is in accordance with the intended use of proceeds of the IPO and in accordance with the percentage allocated. Following the utilisations announced to-date, the company would have materially disbursed an aggregate of approximately SGD167.8 million (USD129.9 million) of the net proceeds of the IPO. [more]
Tiger Airways utilises SGD39.6m of IPO proceeds on aircraft acquisitions
You may also be interested in the following articles...
Airports - subject as always to the vicarious uncertainty of airline fortunes
CAPA’s 2016 outlook was against a background of unusually high levels of profitability for airlines.
Scoot 2017 outlook: challenging market conditions and Europe launch could impact profitability
Singapore Airlines (SIA) medium long haul LCC subsidiary Scoot faces a potentially challenging 2017 as it launches flights to Europe and merges with the short haul LCC Tigerair. Scoot is also planning a series of network and schedule adjustments, which are critical to the future success of the European routes and long-term profitability.
Scoot has been successful in the initial four and a half years since its mid-2012 launch, becoming profitable in a relatively quick timeframe and unlocking a new phase of growth for the SIA Group. However, 2017 will bring intense competition and ambitious expansion in markets that are not likely to be profitable in the short to medium term.
Scoot’s newfound profitability could be at risk due to yield pressures, higher fuel costs and expenses related to new long haul route launches. Scoot and its ongoing integration with Tigerair are necessary strategically, and should improve the SIA Group’s long-term position, but the short-term outlook is relatively cloudy.