Tiger Airways, the unprofitable low-fare carrier part-owned by Singapore Airlines, said its Indonesian venture will stop flying, as the budget airline tries to restructure operations.
Mandala will cease operations from July 1, Tiger Airways said in a statement to the Singapore stock exchange on Wednesday. ''Mandala wouldn't be able to sustain its operations and the airlines key shareholders decided to cease funding the carrier,'' it said in the statement. The Singapore-based budget carrier had last year increased its stake in the venture to 35.8%.
''Mandala's financial results reflect the challenges that it is facing in the difficult operating environment,'' Tiger Airways chief executive officer Lee Lik Hsin said in the statement. The partners in Mandala have jointly come to the conclusion to cease funding the airlines operations.
Keep up-to-date with the latest on coup d'etat with Bangkok Post SMS News. Call *451391000 to subscribe – 39 baht/month (7 days free, available in Thailand only) Bangkok Post SMS News: Deliver only trustworthy news on SMS
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.