Tigerair (Singapore Changi) will either sell or close its Indonesian subsidiary Tigerair Mandala (Jakarta Soekarno-Hatta) should it fail to turn around this year. Quoting unnamed sources close to the airline's operations, Reuters said neither Tiger nor its majority Indonesian partner, private equity firm Saratoga, are now willing to make further investments into the airline.
"The more it flies, the more it loses money as nearly every route is below break-even," said one of the people, referring to Tigerair Mandala. "Tiger is subscale in Indonesia. Either it gets out or grows out of trouble."
Tigerair Mandala suspended nine routes over the past year.
Tigerair has already announced plans to withdraw from the Philippine market after it agreed to offload its Filipino subsidiary Tigerair Philippines (Angeles City Clark International) to Cebu Pacific Air (5J, Manila Ninoy Aquino International) for USD10million.
