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Investor CentralTiger Airways Holdings Limited - Will Tigerair Taiwan absorb its idle planes?
31/7/2014 – Tiger Airways Holdings' share price continues to head south as it continues to incur losses.
With no sign of recovery, OCBC Research has maintained its SELL rating with a target price of S$0.30 and CIMB Research has a REDUCE call with target price of S$0.21.
Tigerair will continue to focus on cost discipline and rationalising its network.
The cessation of operations of Indonesia’s Mandala Air means four aircraft have been returned to the Group.
The company just announced earnings for Q1 FY15:
Revenue: -28.4% to S$169 mln
Operating loss: (S$16.4 mln) vs (S$6.2 mln)
Net loss: (S$65.2 mln) vs (S$32.8 mln)
Cash flow from operations: S$53.4 mln vs S$70 mln
The contraction in revenue and expenses was mainly due to the exclusion of Tigerair Australia, as the airline ceased to be a subsidiary of the Group with effect from July 8, 2013.
Losses doubled due to associate Tigerair Mandala’s operating losses of S$35.3 mln and shutdown costs of S$14.6 mln.
Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies which global investors need answers to.
1. Will Tigerair Taiwan absorb its idle planes?
With return of four aircraft from Mandala, Tiger now has twelve leased planes idled.
The Group guided that it will seek to place out the surplus aircraft.
Therefore, it makes us wonder whether it intends to place idle aircraft to Tigerair Taiwan.
2. Will it be impacted by the recent crash of TransAsia in Taiwan? How will it impact travellers’ appetite for low-cost carriers?
Total number of questions in the full story: 7)
We have invited the company to an on-camera interview, and/or to reply to our questions in writing.
At the time of publication we have not received a reply (which is why you are seeing this message).
We will update this article if we do.
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