Tiger Airways shuts Indonesian venture

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mandalaTiger Airways, the unprofitable low-fare carrier part-owned by Singapore Airlines, said its Indonesian venture Tigerair Mandala will stop flying, as the budget airline tries to restructure operations.

Mandala will cease flights from July 1, Tiger Air said in a statement to the Singapore stock exchange on June 18. Mandala wouldn’t be able to sustain its operations and the airline’s key shareholders decided to cease funding, Tiger said.

Tigerair has been grounding planes and canceling aircraft orders as part of a restructuring after mounting losses led largest shareholder Singapore Air to name a new chief executive officer for the low-fare airline. The efforts are symptomatic of the challenges budget airlines face in Southeast Asia, where competition among half a dozen carriers has pushed fares down.

Mandala’s financial results reflect the challenges that it is facing in the difficult operating environment, Tigerair Chief Executive Officer Lee Lik Hsin said in the statement.

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Reading Time: 1 minute

Tiger Airways, the unprofitable low-fare carrier part-owned by Singapore Airlines, said its Indonesian venture Tigerair Mandala will stop flying, as the budget airline tries to restructure operations.

Reading Time: 1 minute

mandalaTiger Airways, the unprofitable low-fare carrier part-owned by Singapore Airlines, said its Indonesian venture Tigerair Mandala will stop flying, as the budget airline tries to restructure operations.

Mandala will cease flights from July 1, Tiger Air said in a statement to the Singapore stock exchange on June 18. Mandala wouldn’t be able to sustain its operations and the airline’s key shareholders decided to cease funding, Tiger said.

Tigerair has been grounding planes and canceling aircraft orders as part of a restructuring after mounting losses led largest shareholder Singapore Air to name a new chief executive officer for the low-fare airline. The efforts are symptomatic of the challenges budget airlines face in Southeast Asia, where competition among half a dozen carriers has pushed fares down.

Mandala’s financial results reflect the challenges that it is facing in the difficult operating environment, Tigerair Chief Executive Officer Lee Lik Hsin said in the statement.

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