Singapore's Tiger Airways has received its first owned aircraft, as the low-cost carrier seeks to own rather than lease aircraft to cut operating costs.
Its latest Airbus A320 aircraft has arrived in Singapore after delivery from Airbus in Toulouse, France, says the airline.
The aircraft is one of two A320s that Tiger has purchased through a financing arrangement with Standard Chartered bank. The second A320 will be delivered next month.
Tiger did not specify the value of the deal, which was concluded in Singapore dollars, although Airbus will be paid in US dollars.
"As our first owned aircraft, it boosts our leadership in cost reduction innovations," says Tiger's CEO Tony Davis.
Including the aircraft that was just delivered, Tiger operates a fleet of 18 A320s. It plans to increase its fleet to 68 by December 2015.
"The increased fleet is now ready to serve our expanded route network in both Singapore and Australia, as we commence services between Singapore and Hong Kong in February, and add services to Brisbane from both Melbourne and Adelaide from March," says Davis.
Tiger recently secured pre-delivery payment financing for another five A320s from Standard Chartered. These will be delivered this year and in 2011.
The airline raised S$247.7 million ($178.5 million) from its initial public offering this month to fund the acquisition of new aircraft and to expand its network.