Tigerair’s Joint Ventures To Benefit From 2013 Narrowbody Delivery Schedule

Singapore-based Tigerair group plans to commit half of its deliveries in the current fiscal year to its offshore joint venture franchises, although it is not revealing how the following year’s deliveries will be allocated.

While Tigerair does not have the same level of orders as the other major Asian low-cost carriers like Jetstar, Lion Air and AirAsia, it does have affiliate airlines that it intends to expand. The group currently has 47 Airbus A320-family aircraft—22 with the core Singapore-based operation, 11 with Tigerair Australia, nine with Indonesian carrier Mandala and five with Tigerair Philippines.

The group is scheduled to receive 10 A320s during the fiscal year through March 2014, and five are allocated to the Singapore carrier. Two of these already have been delivered, a Tigerair spokeswoman tells Aviation Week.

Of the other five aircraft, two already have been delivered to Mandala, and two are scheduled for delivery to Tigerair Australia. The one other yet-to-be delivered aircraft remains unassigned, says the spokeswoman.

Beyond these 10 aircraft, Tigerair has another 15 A320s on order for delivery by December 2015. The airline previously has said that it wants to expand in Asia through new strategic partnerships and organic growth. When asked if the carrier is considering more overseas hubs, the spokeswoman says that for now Tigerair is “focused on growing our existing joint ventures.”

Tigerair Singapore achieved an operating profit for the three months through June 30, although the three joint ventures were all in the red. The carrier says it expects more losses from the Indonesia and Philippines carriers, as they continue to expand.

Tigerair Australia CEO Rob Sharp recently told Aviation Week that the carrier needs to double the size of its fleet of 11 A320s to achieve the scale efficiencies that are expected from a low-cost carrier. This would allow it to reach critical mass and maximize asset utilization.

Virgin Australia bought a 60% share in Tigerair Australia in a deal that was completed in July, with the Singapore-based Tigerair parent owning the remainder. Virgin Australia has stated that the Tigerair Australia fleet is expected to grow to 35 aircraft by 2018.

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