Tiger Airways Orders 37 Airbus A320Neos for $3.8 Billion
By Kyunghee Park - Mar 23, 2014
Tiger Airways Holdings Ltd. (TGR), the budget carrier partly owned by Singapore Airlines Ltd., ordered 37 Airbus Group NV (AIR) planes, canceling some existing orders as it opts for more fuel-efficient models.
The order for single-aisle A320neo planes is valued at $3.8 billion and is for delivery between 2018 and 2025, the airline said in a statement to the Singapore stock exchange today. Manufacturers typically give discounts on list prices. The carrier has the option to increase the order by up to 13 aircraft and also to convert the model to a bigger variant.
As part of the new purchase agreement, Tiger Air canceled existing orders for nine A320s as the new model, powered by Pratt & Whitney engines, will help the company save about S$40 million ($31 million) a year on fuel. An economic boom and a surge in travel demand across Southeast Asia has prompted budget airlines in Indonesia, Malaysia and Vietnam to buy new aircraft, stoking concerns about whether the industry is building more capacity than it needs.
“This deal effectively dissipates some concerns over a potential capacity overhang in the next couple of years,” Tiger Air’s Chief Executive Officer Koay Peng Yen said in the statement.
http://www.bloomberg.com/news/2014-0...8-billion.html
By Kyunghee Park - Mar 23, 2014
Tiger Airways Holdings Ltd. (TGR), the budget carrier partly owned by Singapore Airlines Ltd., ordered 37 Airbus Group NV (AIR) planes, canceling some existing orders as it opts for more fuel-efficient models.
The order for single-aisle A320neo planes is valued at $3.8 billion and is for delivery between 2018 and 2025, the airline said in a statement to the Singapore stock exchange today. Manufacturers typically give discounts on list prices. The carrier has the option to increase the order by up to 13 aircraft and also to convert the model to a bigger variant.
As part of the new purchase agreement, Tiger Air canceled existing orders for nine A320s as the new model, powered by Pratt & Whitney engines, will help the company save about S$40 million ($31 million) a year on fuel. An economic boom and a surge in travel demand across Southeast Asia has prompted budget airlines in Indonesia, Malaysia and Vietnam to buy new aircraft, stoking concerns about whether the industry is building more capacity than it needs.
“This deal effectively dissipates some concerns over a potential capacity overhang in the next couple of years,” Tiger Air’s Chief Executive Officer Koay Peng Yen said in the statement.
http://www.bloomberg.com/news/2014-0...8-billion.html
Comment