We have all heard that Tiger Air is a terrible airlines. I'm surprised that they are still in business. So why is Temasek throwing away more money
Wouldn't it make more $ sense to just divest from Tiger Air?
i think tigerair is turning its operation around. they got rid of the deadwoods, unprofitable routes and the krisflyer points give to tigerair customers to redeem SIA tickets is a smart move. last quarter the tigerair ceo boldy claim tigerair can show profit this financial year. So just as the airline about to really take off, the SIA offer of $0.41 cents is too low considering tigerair shareholders suffer great loss from $1.50 IPO price to current price. Don't forget tigerair shares got diluted by rights issue and we know who brought the most at $0.20. Shareholders bear the losses while SIA want to reap the reward.:oIo:
The original SIA investment in Tiger Air and even the Temasek investment, plus the other 2 partners Indigo and Ryan have already been wiped off the books. The money they put in to start it up has been eaten up by the accumulated losses thru the last 11 years as well as by the serious poor stock performance. Rights issues was just the owners pumping in more money to prop up the company. The real tragedy was the fact that SQ and the other investors suckered in institutions and private individuals to buy their craps shares and spread some of the losses to them. Low Cost Carriers (LCCs) are notoriously hard to make money.
SQ is taking Tiger Air private to eventually get out of the LCC business in Asia. They know Tiger cannot compete with Air Asia and Jetstar and Valuair. Eventually, if Tiger was left alone, they will go bankrupt. The closure will be a huge prestige and reputation blow to Temasek and SQ. Once Tiger has been absorbed back into SQ, you will see the brand quietly get phased out. That is my guess. They will not let a money losing Tiger air drag down the parent company share price.
u sel ... there muz b a buyer ... who wans? ...... Wouldn't it make more $ sense to just divest from Tiger Air?
The original SIA investment in Tiger Air and even the Temasek investment, plus the other 2 partners Indigo and Ryan have already been wiped off the books. The money they put in to start it up has been eaten up by the accumulated losses thru the last 11 years as well as by the serious poor stock performance. Rights issues was just the owners pumping in more money to prop up the company. The real tragedy was the fact that SQ and the other investors suckered in institutions and private individuals to buy their craps shares and spread some of the losses to them. Low Cost Carriers (LCCs) are notoriously hard to make money.
SQ is taking Tiger Air private to eventually get out of the LCC business in Asia. They know Tiger cannot compete with Air Asia and Jetstar and Valuair. Eventually, if Tiger was left alone, they will go bankrupt. The closure will be a huge prestige and reputation blow to Temasek and SQ. Once Tiger has been absorbed back into SQ, you will see the brand quietly get phased out. That is my guess. They will not let a money losing Tiger air drag down the parent company share price.
SQ and silkair provide premium services while scoot and tigerair provide low cost long and short haul respectively.
I know some of u here don't like GLC but please be objective.
SQ and silkair provide premium services while scoot and tigerair provide low cost long and short haul respectively.
I know some of u here don't like GLC but please be objective.
We have all heard that Tiger Air is a terrible airlines. I'm surprised that they are still in business. So why is Temasek throwing away more money
Wouldn't it make more $ sense to just divest from Tiger Air?
Because its premium business is going to suffer a tsunamic shock next year when one of its A330 crashes at Changi. The writing is on the wall.