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PR Newswire
23-03-2013, 08:59 AM
Does Tiger Airways as a LCC with Singapore as its main hub have a future?
The answer has to be "Yes", especially so with SQ/Temasek as its sponsors, but the path ahead will definitely be a bumpy ride, so shareholders better buckled up and expect the usual up and down caused by air turbulence. It simply means there is no guarantee that shareholders/investors will make money here even in the medium to longer term, as the business will suffer occasional major cash burns and require massive capex to build up its capacity and regional network over the next 5 years.
The answer has to be "Yes", especially so with SQ/Temasek as its sponsors, but the path ahead will definitely be a bumpy ride, so shareholders better buckled up and expect the usual up and down caused by air turbulence. It simply means there is no guarantee that shareholders/investors will make money here even in the medium to longer term, as the business will suffer occasional major cash burns and require massive capex to build up its capacity and regional network over the next 5 years.