Is Singapore Airlines starting to move its people in to run Tiger ?

Singapore Airlines which has 30% stake on Tiger Airways seems to be taking management control and leading the charge of Tiger, who is deeply in peril.

The speculation came after former SilkAir CEO Chin Yau Seng was promoted as Tiger Airways’ Executive Director to run existing operations immediately after the low-cost carrier was banned from flying to Australia. Silk Air is a wholly-owned subsidiary of Singapore Airlines.

“Mr Chin was SilkAir's CEO. He was appointed to ED of Tiger Airways immediately following the events in Australia and will be with Tiger AirWays’ CEO Tony Davis in their discussions and negotiations with Civil Aviation Safety Authority. With his wealth of experience, he should be able to contribute positively to the situation at hand,” analyst Melissa Yeap at DMG said over the phone.

Robert Bruce, another aviation analyst at Hongkong-based CLSA Research also shared the same view adding that Singapore Airlines only play small management role at Tiger Airways.

“It’s an overstatement to say that SIA will take over Tiger Airways. SIA’s role will perhaps be in the cashflow management where it could be expected to contribute additional capital for Tiger to cover some losses,” he said.

“Mr. Chin was promoted because Tiger Airways is banking on his experience in planning and risk control,” he added.

Russel Shaw, senior transport analyst at Mcquarie also said: “Just one person appointed in the board doesn't necessarily mean that SIA will be taking over Tiger Airways.”

With reports from Isabelle V. Ulanday