Tiger Airways Holdings Ltd and Standard Chartered Bank have inked two new multi-million dollar financing deals covering the pre-delivery payments (PDP) of six aircraft to Airbus as well as the purchase of seven aircraft.
These two financing arrangements come shortly after the completion in January 2010 of Tiger Airways' first Export Credit Agency-backed (ECA) financing with Coface for two A320s and an earlier PDP financing arrangement covering five aircraft deliveries that was arranged by Standard Chartered Bank.
Under the new financing arrangement, Standard Chartered Bank is arranging PDP financing for six A320-200s scheduled by December 2011.
The Bank is also mandated as the lead arranger for ECA-backed structure financing for Tiger Airways covering seven additional aircraft that are expected to be delivered by January 2011.
This will bring the number of aircraft owned by Tiger Airways to nine, including two that were delivered in January and February 2010.
Tiger Airways currently has a 19 Airbus A320 aircraft fleet and will have a fleet of 68 aircraft by December 2015.
Tony Davis, President and CEO of Tiger Airways Holdings Ltd says "We are grateful for the strong support that we have received from Standard Chartered Bank and their confidence in Tiger Airways. As we continue to grow in Asia and Australasia, we look forward to acquiring more of our own aircraft through ownership financing arrangements. The savings in operational costs, compared to leasing aircraft, will enable us to keep offering the lowest possible fares to our customers."
Simon Perkins, Managing Director, Aviation Finance, Standard Chartered Bank comments: "These two transactions, hot on the heels of the earlier deals in January, demonstrate Standard Chartered Bank's strength of liquidity and capital; and our ability to support our clients and their needs with a strong multi-product platform. We are absolutely proud to be part of Tiger Airways' achievements to date and relish the opportunity to partner with them in the successful build out of their strategy in the future."