Tiger Airways orders 20 A320s
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Southeast Asia,
Tiger Airways
(XFN Asia) Tiger Airways stated it has exercised an option to purchase 20 more A320 aircraft, valued at USD1.3 billion. The 20 extra aircraft, due for delivery in 2016, will expand Tiger Airways' fleet to 70.
In Oct-07, Tiger Airways signed a contract with Airbus for 30 A320s, with an option to buy 20 more.
"With 70 aircraft, that will put us in the top-tier airlines globally," Tony Davis, Tiger Airways CEO, said.
Mr Davis said there are a number of options available for Tiger Airways in the long run to fund its fleet, including sale and leaseback deals.
"We are not anticipating any capital call from our shareholders and at this point we don't need to go to the external markets [for financing]," Mr Davis said.
Tiger Airways, now on its third year of operations, is expected to turn in profits in the 12 months ending Mar-08, having been profitable in the Jun-07 and Sep-07 quarters. For the third quarter to Dec-07, the group is expecting first-time contributions from its Australian operations, that started last month.
The LCC, which is 49% owned by Singapore Airlines, still has no immediate plans to launch an initial public offering (IPO).
"It's going to be the shareholders' position when they think it is right to bring other investors in. Right now, we don't need additional financing," Mr Davis said.
Date posted: 19-Dec-07
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Tiger Airways orders 20 A320s 
