flee 5 Report post Posted June 3, 2011 SINGAPORE: Shares of Singapore budget carrier Tiger Airways fell to the lowest intra-day level since March 17 on news that Tiger chief executive officer sold one million shares in the firm and on analyst concerns that its budget carrier alliance with Thai Airways may fall apart as the Thai carrier sets up its own regional airline. Tiger shares dropped as much as 3.6% to S$1.33 in early trade yesterday, but had since edged up to S$1.34. On March 17, Tiger stock hit an intra-day low of S$1.32. Tiger CEO Tony Davis sold one million shares at S$1.42, below the initial public offering price of S$1.50, cutting his stake in the company to 0.57% from 0.75%, according to a filing to the Singapore Stock Exchange. “It shows that the management itself is not confident of the direction of the company,” said Melissa Yeap, an analyst at DMG & Partners Research. I think that's why it's particularly leading to the share price fall, coupled with the fact that Thai Airways is setting up its own airline,” she added. Thai Airways announced that it will be setting up a new regional airline, tentatively called Thai Wing, which is expected to start operations in early 2012. Last year, Thai Airways formed an alliance with Tiger to form budget carrier Thai Tiger Airways, but Thai Airways chairman said the launch would be delayed for another two or three months from May. Yeap said DMG maintained its earnings estimates for Tiger partly because the brokerage had factored in the possibility that the Thai Tiger alliance will not materialise. - Reuters Source: http://biz.thestar.com.my/news/story.asp?file=/2011/6/3/business/8826205&sec=business Share this post Link to post Share on other sites
Sandeep G 1 Report post Posted June 3, 2011 The business in Australia is also under pressure and not seeing any positive growth prospects this year in capacity/network. Interesting times ahead. Share this post Link to post Share on other sites
alberttky 0 Report post Posted June 3, 2011 Maybe AirAsia should just acquire and rebrand Tiger and let Tiger RIP. Share this post Link to post Share on other sites
Sandeep G 1 Report post Posted June 3, 2011 You never know - might just be on the cards... AirAsia have touted with the idea of having a presence in Australia also - although - the operational environment there is a little topsy-turvy at the moment with QANTAS/Jetstar and a new branding of Virgin Australia... Plus Tigers poor reputation amongst the public in Australia wouldn't make it a great takeover target. Share this post Link to post Share on other sites
KC Sim 2 Report post Posted June 3, 2011 Tiger Airways' indifferent attitude towards passengers when flights are disrupted, delayed or cancelled certainly does not make it a very popular company - even as its low prices continue to fill the planes. It has not grown fast enough to take up opportunities - unlike AirAsia - and news of the CEO offloading shares isn't comforting to investors. Thai Tiger - not unlike the Korean outfit it tried to establish a few years ago - seems destined for a difficult birth and hopefully will not be a still-born like the Korean attempt. Even the joint operation with SEAir seems to be plaqued by troubles ... not sure how much two A319s could do in the Filipino market. A token operation at best compared to the likes of Cebu Pacific and Airphil Express (I have tried and liked the service onboard Airphil Express). KC Sim Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted June 3, 2011 (edited) Tiger Airways' indifferent attitude towards passengers when flights are disrupted, delayed or cancelled certainly does not make it a very popular company - even as its low prices continue to fill the planes. KC Sim Agree with KC Sim. I shuttle quite often between KUL-SIN. Most of the time with Tiger due to scheduling conflicts. After many flights with them, I can conclude that TR seems to be a dying brand. TR has many Korean FAs which have bare English communication skills and some FAs are close enough to be labelled as arrogant and lack customer care skills. My first flight with them was awesome, then it went downhill. Tony Davis spoke very positively though in the latest MD's note in Tiger Tales, their inflight mag...in reality I doubt everything looks that rosy... On top of that, their booking option and add-on services are inflexible. No online check-in in 21st century?! Hellos, your competitors are way ahead in the league....If not because of time schedule, I would have taken 3K or AK. Tiger...hmm..let it be. Edited June 3, 2011 by JuliusWong Share this post Link to post Share on other sites
KK Lee 5 Report post Posted June 5, 2011 For a CEO to dispose of his share at below IPO price is desperate like the captain abandon his sinking ship. TR has a habit to cancel flight if load is poor. For every last minute flight cancellation, about a third of pax on the canceled flight may not consider to choose the airline again. If TR canceled enough number of flights, last minute cancellation will grow exponentially. If a airline couldn’t provide reliable transport is better to diminish to make space for competitors. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted June 5, 2011 For a CEO to dispose of his share at below IPO price is desperate like the captain abandon his sinking ship. TR has a habit to cancel flight if load is poor. For every last minute flight cancellation, about a third of pax on the canceled flight may not consider to choose the airline again. If TR canceled enough number of flights, last minute cancellation will grow exponentially. If a airline couldn’t provide reliable transport is better to diminish to make space for competitors. Agree. Its either SQ spruce up TR to AK level or some-sort OR just let the brand die....its half baked cake as of now. So far I have been lucky. TR hasn't cancel any of my flight. The last time I flew with them,last week, SIN-KUL, there were about 30 pax onboard. The flight went ahead. Most flight cancellation most probably are in Australia. Fingers crossed! Share this post Link to post Share on other sites