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BY OUR AVIATION CORRESPONDENT
25 July, 2005: Singapore's Tiger Airways has placed an order to buy eight A320 planes from Airbus Industrie for $500 million, even as the fledgling low-fare airline is seeking a partner to set up operations outside the city-state.
Airbus Industrie is expected to deliver the first two planes in March 2006, with another three would be delivered in the third quarter of 2006. The last three will be delivered in 2007.
On completion of the deliveries, Tiger Airways will be operating a fleet of 12 A320s and would carry over four-five million passengers a year.
“Tiger Airways has met its business target in the first 10 months of operations. The board of directors has endorsed our plans to expand services by Tiger Airways in the region,” Tiger Airways Chief Executive Officer Tony Davis said.
Meanwhile, the carrier is also scouting for a partner to help it set up a second base outside Singapore.
Davis said Tiger was not looking for a merger partner but a partner "we can work with".
"We are talking to a number of parties. We are approaching people and a number of people have come to us. Just having a base in Singapore is not the strategy... we need to expand our network beyond Singapore."
Tiger, in which Singapore Airlines holds a 49 per cent stake, was affected by a surge in jet fuel prices combined with a drop in demand for travel after last year’s tsunami struck Asia.
The price of jet fuel has risen 44 per cent since the start of the year but is below a May high. Some airlines have increased fuel surcharges on ticket prices, blaming the rise in fuel prices.
According to Davis, the company intends to focus on growth, rather than on attaining profitability.
Tiger's shareholders include the founder of European budget airline Ryanair and Singapore state investment group Temasek Holdings and investment firm Indigo.
The airline, which owns four Airbus A320 aircraft, flies from Singapore to Macau, Thailand, Vietnam, Indonesia and the Philippines.
BY OUR AVIATION CORRESPONDENT
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