, Singapore

Profit turnaround still a long way away for floundering Tigerair

SIA’s profitability will continue to suffer.

Tigerair is a long way away from salvaging its loss-making operations. According to OCBC, investors shouldn’t pin their hopes too much on Tigerair’s alliance with Scoot.

OCBC notes that it will take Tigerair 12-18 months to recover, and its parent airline SIA will continue to suffer profitability dents in the meantime. 

“With a veteran from SIA taking over the helm of Tigerair just this year, the likelihood of real progress on the alliance is much higher. In addition, SIA’s recent undertaking to increase its stake in Tigerair from 40% up to ~56% clearly shows its commitment to grow Tigerair. We see this as a positive for Tigerair with SIA as its backer. However, we still think it will take at least 12-18 months to recover plus the fact that the yield environment remains depressed. Until Tigerair manages to turnaround, SIA’s profitability will continue to suffer as it will have a larger share of the expected losses of Tigerair in 2015,” noted OCBC.  

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Top News

Singapore payments to hit $114b by 2030
Transaction value reached $39b in 2023 and is projected to grow 16.3% annually.
Cards & Payments