Friday, May 14, 2010

Tiger Airway posts profits of $28.2m

After a $50.8 million loss in the previous year, recently IPO-ed Tiger Airways has returned to the black with a full year profit of $28.2m.

This is due to lower fuel costs and strong passenger numbers. The company has seen an increase of 53.8% passengers compared to the previous year.

Expansion plans are also in the pipeline with Tiger Airways expanding its network of routes to include Trichy and Trivandrum in southern India. Its Australian unit will grow with the opening of a third base at Avalon near Melbourne.

President and CEO, Tony Davis also said that Tiger was looking to start new airlines elsewhere in the region.

While rivals Jetstar and AirAsia have expanded their operations to include long-haul routes, Tiger will continue to stick to the low cost model of short-haul operations.

Tiger Airways is a subsidiary of SIA and often takes up flight routes that SIA drops. It has a fleet size of 10 and currently flies to 19 destinations.

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