Tiger buys A320s in move away from leasing model

Singapore
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Singapore's Tiger Airways plans purchase two A320-200 aircraft, the first aircraft it will own rather than lease.

The two aircraft will be delivered in January and February 2010, and are among the 66 A320 aircraft Tiger has on order from Airbus, says Tiger. The transaction is currently in the documentation phase, with Standard Chartered PLC as the lead arranger, and the deal's financing backed by Europe's Export Credit Agency.

While the deal is structured in Singapore dollars (Tiger does not specify the value), Airbus is to be paid in US dollars.

"These two new Airbus A320-200s will be the first aircraft that we will own rather than lease, enabling us to further reduce our operating costs," says Tony Davis, president and CEO of Tiger. "As we continue to grow our fleet, we will look to finance additional aircraft in a similar fashion."

Tiger currently operates 17 A320 family aircraft.