Business Round-Up
Singapore’s struggling Tigerair leases A320s to IndiGo
November 1st 2014
Tigerair Singapore will sublease 12 of its A320s to Indian low-cost carrier, IndiGo, as part of the process of “right sizing” its operation, said the Singapore based budget carrier. Read More » Tigerair needed to dispose of the surplus aircraft, which it was left to manage after the airline closed down its LCC subsidiary, Tigerair Mandala, and disposed of its interest in fellow budget carrier, Tigerair Philippines. “Tigerair said in a statement last month the aircraft will be leased to IndiGo at a discount to their original lease rates.
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However, compared with the idling of these aircraft, this sublease agreement will considerably reduce the group’s cash flow burden by about US$128 million over the sublease period.” Tigerair may launch an Initial Public Offering (IPO) as it seeks to balance its books after a long to period of losses.
