Well, clearly they are financially up **** creek
Tiger battles for a bite
BUDGET carrier Tiger Airways plunged to a $50.1 million loss last year as the Singapore-listed airlines group struggled to take a share of the Australian domestic market. The costs of operating in Australian skies also stripped $S20 million ($15.8 million) from the parent company's reserves, leaving the business with just $S13.2 million in available cash.
The group loss for Tiger Singapore and its cub Tiger Airlines Australia for 2008-09 amounted to $S50.8 million, reversing the previous year's $S9 million profit.
The annual accounts of Tiger Aviation Singapore, filed nine months late, show the company owed more than it owned, with liabilities at the end of March this year exceeding assets by $S109 million.
Group assets, held by both the Singapore and Australian businesses, were valued at $S187 million contrasted by liabilities of $S296 million.
Tiger Airways Singapore declared an operating profit of $S12.2 million, its second consecutive profit and a $3 million improvement on the previous year.
Group president Tony Davis said the Australian business was "negatively impacted by the adverse impact of record oil prices and foreign exchange volatility".
During the period, Tiger launched in Melbourne with three aircraft, opened a second base in Adelaide and incurred a $17 million loss on fuel hedging as jet kerosene prices soared to more than $US170 a barrel.
Revenue rose to $S384 million, an increase of $S74 million at a time when the business incurred a $S15 million rise in staff costs and a foreign exchange loss of $4 million.
Peter Harbison, a leading aviation commentator and head of the Centre for Asia Pacific Aviation in Sydney, said the carrier seemed committed to a long-term view.
Tiger Australia will switch from a holiday route operator to high yield routes. Having launched a Melbourne-Sydney service last July it will soon begin Melbourne-Brisbane flights.
It has also announced a Sydney-Gold Coast service.