Tiger Airways shows its financial prowess, ready to take over some of Jetstar-Valuair's regional routes

Singapore’s low-fare airline Tiger Airways is planning to expand significantly during 2006 as it adds services to both India and China.

“The airline is well supported by a strong financial base. We have a strong cashflow and the vast majority of our shareholders’ initial investment remains unutilised,” said Tiger Airways chief executive officer Tony Davis.

Davis said: “Tiger Airways has a winning formula because we adhere strictly to the low cost carrier model which has a proven track record in the US and Europe. At the same time, our shareholders and management team have proven expertise in operating successful low fare airlines. Although our shareholders allow the management team significant independence in running day to day operations they impose high standards of fiscal discipline. These qualities have enabled Tiger Airways to expand rapidly in just over one year of operations.”

The chief executive added the airline is well placed to take over some of Jetstar-Valuair's regional routes if they want to give them up. Davis was referring to a newspaper report that Orangestar Investment Holdings, the holding company of Jetstar Asia and Valuair, was seeking fresh funds of S$36 million or US$22.4 million after nearly exhausting S$60 million infused at the time of the merger in July 2005.

Tiger Airways serves 13 cities in seven countries (Singapore, Thailand, Vietnam, Macau SAR, the Philippines, Australia and Indonesia). This will increase to 16 destinations when Tiger Airways flies to the Southern Chinese cities of Guangzhou, Haikou and Shenzhen later this month. The airline’s founding shareholders are: Singapore Airlines Limited (49 percent), Indigo Partners LLC, the investment firm founded by Bill Franke (24 percent), Irelandia Investments Limited, the private investment arm of Tony Ryan and his family (16 percent) and Temasek Holdings Pte Ltd (11 percent).