Tigerair remains committed to loss-making regional units

Singapore
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Tigerair has reaffirmed its commitment to its struggling Indonesian and Philippine units.

"Tiger Mandala has been moribund, with Tiger Philippines creaking along under its former management," chairman JY Pillay said in a speech at the company's annual general meeting.

"It takes time, and enormous effort, to rehabilitate two such companies. We believe it is worthwhile to persevere with this effort for the foreseeable future, but I must caution that the red ink will not turn black overnight."

Pillay also stressed that its principle shareholder, Singapore Airlines, remains committed to Tigerair.

"Private Equity investors would be tempted to cut and run, but we are not of that ilk," he said. "Our primary objective is long term sustainability in the Philippines and Indonesia."

He added that Singapore sits roughly in the middle of the Indonesian archipelago, making it a natural hub for the sprawling island nation.

Tigerair almost halved its first quarter operating loss to S$6.2 million ($4.9 million) in the three months to 30 June, but its loss after tax more than doubled to S$32.8 million.

The comparable figures from last year were S$11.8 million and S$13.7 million respectively.

Group revenue increased by 30% to S$236 million, while passenger revenue rose by a quarter to S$183 million. Total expenses, likewise, climbed by a quarter to S$242 million.