Recently, Tigerair has undergone a facelift and re‐introduced itself as warm, passionate and genuine Tigerair (previously known as Tiger Airways). Together with its other rebranding efforts and key developments, we see a glimmer of hope for TGR's recovery to become a "better and bolder airline" as aspired by CEO Koay Peng Yen. We have no rating on TGR.

What happened in the past stays in the past. Tigerair's share price tumbled by a whopping 141% since IPO with the crippling effect from the Aussie subsidiary. Tigerair Australia won back its full operating license in October 2012. However the company continues to miss consensus estimates mainly due to its recovery efforts from the mayhem. The JV with Virgin Airways with the sale of its 60% stake in Tiger Australia would allow TGR as a Group to refocus its resources within Asia, namely in Indonesia and Philippines. And at the same time, Tigerair Australia would be able to leverage on the strengths of both shareholders to build a stronger fleet and gain market reach.

Showing signs of recovery. The  tiger could have let out a low frequency roar, an inaudible infrasound to forewarn the investment community of its recovery. Observing TGR's on‐time statistics for recent months, the Group delivered high level of promptness for its flights alongside low cancellation rates. TGR has outperformed its peers with 88% of its total flights being on  time or less than 15 minutes delayed for the period of April to June 2013. Generally, delay costs are high; high punctuality rates would represent sound
operations of the airline, driving the airline's profitability subsequently.

Moreover, the Group's operating statistics reflected significant improvements in recent quarters. Traffic in 4Q13 grew 38% yoy on top of 31% capacity growth for the same quarter. We understand that TGR's fleet size expanded from 23 in FY12 to 43 in FY13 so that the company could have the flexibility to manage its flights. However, with traffic growth surpassing its capacity growth, could TGR have already become a more preferred choice for budget travelers?

Source: AmFraser