Singapore Stock Market News

Tiger Airways - Unveils regional alliance strategy

StockFanatic
Publish date: Tue, 17 Dec 2013, 01:37 PM
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Tiger Airways (Tigerair) has signed a series of agreements to develop regional alliances to accelerate its growth and improve assets utilisation. Tigerair has announced that it has signed an interline agreement with India's SpiceJet to connect 14 Indian cities onto Tigerair's flights to Singapore and beyond via Hyderabad airport.

Tigerair said that it is also looking to further align its commercial and network operations with Scoot to increase synergies. This is subject to an anti-trust review in Singapore.

Tigerair announced that it has also formed a JV with China Airlines called Tigerair Taiwan (TRT). However, the near-term impact is minimal given Tigerair's 10% stake in TRT.

These initiatives are potentially positive for Tigerair, but have a long gestation period. We do not expect these to significantly impact its near-term profitability. Thus there is no change to our earnings forecasts and target price for Tigerair. We maintain our UNDERPERFORM rating on the stock.
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