, Singapore

Tiger to face a tough market in Indonesia, says analyst

The airline’s progress in Indonesia is viewed positively but described as “just the start of an uphill battle”.

DMG Research said, “We view progress made in Indonesia positively although this is just the start of an uphill battle. Regulatory approvals will need to be secured after which Tiger will be facing a tough market. Nevertheless, our concerns of overcapacity and the probability of aircraft deferment will be eased."

The budget carrier, noted DMG Research, plans to increase its fleet in Singapore from 14 to 20 while maintaining its fleet in Australia at eight. Meanwhile it has two aircrafts leased to Philippines SEAIR. "It plans to end FY12 with 35 aircrafts hence we believe its plans to allocate its five additional A320s to Indonesia," said DMG Research.

Tiger Airways, which has signed a share subscription agreement for its proposed 33% stake in PT Mandala Airlines of Indonesia, will likely have to wait for three months to gain regulatory approvals so flight operations can commence.

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.