Tiger losses take chunk out of its parent's finances
MATT O'SULLIVAN
November 17, 2009
THE parent of the Australian low-cost airline Tiger Airways lost about $S28 million ($22 million) for the year to March, a sharp reversal on the previous 12 months, when it posted a $S10 million profit.
The result for the Singapore Airlines-backed Tiger Aviation indicates its Australian operations are still suffering large losses as it tries to establish a position in the domestic aviation market.
Tiger Aviation is the parent of Singapore's Tiger Airways and Tiger Airways Australia.
The privately owned airline is yet to lodge its annual accounts with Singaporean regulators but it has emerged that Singapore Airlines' share of Tiger's cumulative losses increased by $S14 million, or 44 per cent, to $S45 million for the year to March 31. Given it owns 49 per cent of the low-cost airline, Tiger lost an estimated $S28.4 million for the period.
Yesterday Singapore Airlines dismissed speculation that it had injected more capital into Tiger Aviation. But the biggest shareholder said it had stopped accounting for its share of further red ink at Tiger after accumulated losses exceeded its cash contribution of $S39.2 million.
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Tiger losses take chunk out of its parent's finances
Quite surprised that no one has posted that yet!
Anyone can someone please work out the maths for the part I had in bold? It doesn't seem to add up.