Say goodbye to Tiger Aussie in 18 months or less

There’s no future for the grounded airline in Australia even if it resumes operation today (Aug 12), says Royal Bank of Scotland Asia Securities (RBS).

“To be honest, I would expect it to close down probably not within the year but I would say within maximum of 18 months. The decision to re-operate in Australia is just to demonstrate to the world that flying with Tiger Airways is safe.” RBS analyst John Rachmat said over the phone.

“Since the operation of Tiger Airways Australia in 2007, it has never made a profit. I think the best that they have delivered is I think a loss of $200K+. Not having a single year of profit is obviously not a good operating environment and I don’t think it is worth to waste money and effort in Australia anymore.” he added.

Tiger Airways have already closed its Adelaide base and according to Mr. Rachmat it will only be just a matter of few days before we see it shutting its Avalon base as well.

Moreover, the aviation expert said that Tiger Airways will just have to re-focus to markets where they actually make profits.

“I think Tiger is doing much better profitability in Southeast Asia. While half of its concentration is focused to Singapore, the other half will be directed to other countries in the region like Philippines, Indonesia and Vietnam.” noted Mr. Rachmat.
 

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