Tiger Australia's CEO resigns and joins Jetstar

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Tiger Airways Australia's chief executive Andrew David has tendered his resignation and will join rival low-cost carrier Jetstar in 2013.

Jetstar says David will take on a new role as chief executive of its widebody operations out of Australia and Singapore. He will based in the carrier's head office in Melbourne.

"A key part of Andrew's role will be the smooth integration of the Boeing 787 into the Jetstar fleet, as well as contributing to ongoing improvements in customer service, operational safety and revenue growth," says Jetstar group chief executive Jayne Hrdlicka.

Jetstar adds that it will receive its first 787-8 in mid-2013, with the type to gradually replace its fleet of 11 Airbus A330-200s used on medium and long-haul routes.

As a result of David's appointment, the airline's Australia and New Zealand chief executive David Hall will focus on the group's narrowbody Airbus A320 operations.

Tiger Australia says David "will remain in the role as chief executive over the coming months to facilitate a smooth transition period".

In a statement to the Singapore Stock Exchange, Tiger Airways says that David's resignation will be effective from 5 June 2013.

Prior to joining Tiger Australia in October 2011, David had been chief operating officer at Virgin Blue, but he left the company shortly after John Borghetti was appointed as chief executive.

David's resignation comes shortly after Virgin Australia announced in October that it would take a 60% stake in Tiger Australia and operate it as a joint venture with Tiger Airways, focusing on the budget market segment in Australia.

As part of the agreement with Tiger Airways, both airlines will appoint the senior management at Tiger Australia, with Virgin responsible for nominating the chief executive.

The acquisition is still subject to approval from Australian competition and foreign investment authorities, as well as Tiger Airways' shareholders. Virgin says it expects to complete the share purchase by June 2013.