Tigerair Mandala to cease operations from July 1

The Indonesian budget carrier Tigerair Mandala will cease operations from July 1, 2014 after its shareholders decided to stop funding the airline.

Tigerair Mandala has been struggling to make a profit. It booked six consecutive quarterly losses, with a loss of S$95 million for the first quarter of this year.

Tigerair Mandala is 35.8 per cent owned by Singapore's Tigerair. The other shareholders include Saratoga Group and PT Cardig International.

Tigerair and other shareholders have explored various options for the carrier in recent months but failed to get a buyer.

They concluded that the carrier would not be able to sustain its operations.

Group CEO of Tigerair, Lee Lik Hsin, said Indonesia remains an important market for the airline and it will continue to maintain an active presence there through Tigerair Singapore.

SOURCE