Singapore Airlines 2016 Annual Report Download - page 45

During the year under review, Tiger Airways, which
operates as Tigerair, achieved a turnaround with a
full-year net profit of $0.3 million, compared to a net
loss of $264 million. Revenue increased by $26 million
due to higher load factor and higher yields. Expenses
decreased mainly due to lower fuel costs and higher
aircra productivity.
As part of its turnaround plan, Tigerair actively reviewed
its network regularly to right-size its operations. New
destinations with potential to contribute positively to the
bottom line were added to the network. During the year
in review, Tigerair introduced three new destinations –
Ipoh, Quanzhou and Lucknow - in addition to re-instating
services to Lijiang. As at 31 March 2016, Tigerair operated
flights to 40 destinations across 12 countries in Asia.
Proactive fleet management has put Tigerair on a
firm footing for future sustainable growth. During the
financial year, an aircra was subleased to Tigerair
Taiwan, two aircra were returned to the operating
fleet and two aircra were parked in preparation for
sale. In addition, Tigerair decided to sell five aircra
and lease them back for a period of two to three years.
At the end of the financial year, Tigerair operated a
fleet of 23 aircra with an average age of four years and
10 months.
Tigerair continued to deliver product innovations as more
booking choices were introduced to target small and
medium-sized enterprises (SMEs) and corporate customers
through the launch of FlexiCombo and American Express
payment mode. Ease of travel was further enhanced with
the launch of mobile check-in using the Tigerair app.
Customers with only carry-on baggage are also now able
to enjoy a queue-free and paper-free boarding experience
when travelling out of Singapore.
A stronger partnership through the cross-selling of
Tigerair and Scoot’s destinations on their respective
websites began in April 2015. The recent merger of both
airlines’ computer reservation systems will also result
in more seamless transactions for customers and cost
eiciencies in the near future.
During the year in review, SIA launched a voluntary
general oer for the shares of Tigerair that it did not
already own, resulting in full ownership. Tigerair was
subsequently delisted from SGX-ST on 11 May 2016.
As a wholly-owned subsidiary of SIA, Tigerair is an
important element of SIA’s portfolio strategy in which
it has investments in both full-service and budget aspects
of the airline business. Tigerair and Scoot have since
embarked on a deep integration process to fully realise
commercial and operational synergies under a common
holding company, Budget Aviation Holdings Pte Ltd.
Tigerair Serves
40
destinations across
12 countries in Asia
Fleet of Aircra
23
aircra with an average
age of four years and
10 months
Tigerair
As a wholly-owned subsidiary of SIA, Tigerair is an important
element of SIA’s portfolio strategy in which it has investments
in both full-service and budget aspects of the airline business.
Annual Report FY2015/16 43