Tiger Group reports USD15.9m impact from Tiger Australia suspension
Tiger Airways Group, providing an updated on the Tiger Airways Australia situation, stated (04-Aug-2011) the flight suspension and ticket refunds have resulted in a reduction in its sales in advance of carriage (balance sheet) of SGD17.7 million (USD14.5 million) and ancillary revenue (income statement) of SGD1.7 million (USD1.4 million). The financial impact will be recorded in the financial statements for the second quarter ending 30-Sep-2011. The carrier's operations have been suspended since 01-Jul-2011. A court hearing is scheduled to be held on 05-Aug-2011 on the matter. Meanwhile, the Civil Aviation Safety Authority of Australia has issued the company with a set of formal conditions, some of which must be satisfied prior to the reintroduction of domestic flights in Australia. The carrier stated it is "confident" that it can comply with these conditions and expects to resume services in the "near future". Tiger Airways CEO Chin Yau Seng stated while the airline is unable to provide a definite date for the lifting of the Australia unit's suspension, it remains "committed to Australia" (Dow Jones, 04-Aug-2011).
Tiger Airways Group: "Tiger Airways Australia is preparing its re-launch, which will occur once the Civil Aviation Safety Authority is satisfied with the fulfillment of its conditions and reinstates Tiger Airways Australia’s Air Operator’s Certificate. With the loss incurred in the first quarter, and the suspension of all domestic services in Australia for more than a month, we expect Tiger Airways Australia to report a net loss for this financial year. The Group’s financial performance will be significantly affected by the expected losses of Tiger Airways Australia, while being exposed to high and volatile jet fuel prices," Company Statement, 04-Aug-2011.