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  • TR will be 100% owned by SQ

    SQ just announced it is buying out the remaining TR shares. Following the transaction, TR will be 100% subsidiary of SQ. TZ has announced that the cooperation with TR will increase post acquisition, but they will operate as separate brands.

  • #2
    No confirmation yet. Only offer made, can still be rejected. It's not set in stone already.

    The offer is conditional upon SIA and parties acting in concert with it owning more than 90 per cent of Tigerair by the close of the offer and the approval in-principle for the dealing in, listing of and quotation of the new SIA shares.
    http://www.straitstimes.com/business...ir#xtor=CS1-10

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    • #3
      Originally posted by shikhargpt View Post
      No confirmation yet. Only offer made, can still be rejected. It's not set in stone already.



      http://www.straitstimes.com/business...ir#xtor=CS1-10
      Yes it is not certain, but why would anyone reject the premium SQ is offering over historical prices?

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      • #4
        When the sale is completed, SIA will have 3 fully owned airline subsidiaries ie Silkair, Tiger and Scoot. It would be good and advantageous for SIA then to merge Scoot and Tiger for better economies of scale and make it easier to integrate the 2 budget carriers rather than to maintain 2 separate budget carriers and also in manpower savings which is sorely needed to turn these 2 into profitability hopefully in another 5 years.

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        • #5
          Isn't Silkair the subsidiary more likely to go away? It occupies a very odd niche - regional destinations that aren't important enough to get SQ mainline service, but for some reason or another can't be done with the LCC part of the company.

          I could see Tigerair becoming the regional LCC subsidiary, with Scoot taking over medium/long-haul routes and aimed more at leisure markets. (Thinking along the lines of what Condor used to be for the Lufthansa group.)

          Very good chance there's some reshuffling of the orders whatever happens. MI has the 737 MAX on order; TR has the A320neo on order. One or the other is getting cancelled; I can't see SIA operating both at the same time.

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          • #6
            If anything will go its Tiger, they have a poor reputation!

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            • #7
              Originally posted by leops1984 View Post
              Isn't Silkair the subsidiary more likely to go away? It occupies a very odd niche - regional destinations that aren't important enough to get SQ mainline service, but for some reason or another can't be done with the LCC part of the company.

              I could see Tigerair becoming the regional LCC subsidiary, with Scoot taking over medium/long-haul routes and aimed more at leisure markets. (Thinking along the lines of what Condor used to be for the Lufthansa group.)

              Very good chance there's some reshuffling of the orders whatever happens. MI has the 737 MAX on order; TR has the A320neo on order. One or the other is getting cancelled; I can't see SIA operating both at the same time.
              I think it won't be. Silkair is the nice niche where its a full service airline is still required in a location that SQ can't fly due to its higher cost base.

              The question for me would be if SQ will eventually decide to just throw away the Tiger brand and go with Scoot. Considering that the Tiger brand has been tainted by the mismanagement of the previous team and that Scoot seems to be doing well, using Scoot as the LLC branding might make sense to me
              Life's A Bitch,
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              If GOD created me for only 1 reason. That reason would be to the love of my wife. If there was any other reasons involved, that would be for the love of Singapore Airlines

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              • #8
                I too would bet the Tiger brand gets the axe.

                Silkair has built a good brand for themselves while there is no need for two LCC brands.

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                • #9
                  Originally posted by leops1984 View Post
                  Very good chance there's some reshuffling of the orders whatever happens. MI has the 737 MAX on order; TR has the A320neo on order. One or the other is getting cancelled; I can't see SIA operating both at the same time.
                  I would rather see a 737MAX cancellation rather than a A320NEO cancellation; the A320 family, especially the A321NEO could be a valuable aircraft for the group down the track, even if they don't operate them today. It could work well for MI on routes to China, even Korea and Japan, unfortunately they went Boeing.

                  I could see both TZ and TR merging down the track, with TR becoming "Scoot Mini".

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                  • #10
                    Yes Silkair have been profitable albeit its profitability have gone down and it provides a "feed" for SIA as it flies to mainly regional and niche markets, and Silkair is not a budget airline. Its better for SIA to drop Tiger as like few have mentioned, it had a rather poor reputation and have been making losses for 10 of its 11years in operation. Further recently Scoot have tied in to Tiger in joint fields of co-operation and including having both destinations in each other schedules and interlining of passengers baggage. Tiger would be better integrated into Scoot and provide Scoot with a wider regional network and at the same time be more cost efficient and cost effective as it does not need 2 separate depts in all areas of flight operations and airline management. This would help SIA in tremendous costs savings in manpower and in operations.
                    And finally believed Silkair ordered the 737 Max is because then the Airbus A320 does not have the range of the boeing's.

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                    • #11
                      Big Scoot and Little Scoot

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                      • #12
                        At the moment SQ have said they will not merge Tiger and Scoot. - http://www.singaporeair.com/pdf/Inve...t-q2fy1516.pdf

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                        • #13
                          SQ gets over 90% stake in Tigerair, to delist the airline!

                          Ladies and gentlemen, it is indeed official now that SIA owns 90% of the Tigerair shares that they are going to delist the airline! Exciting new developments on the budget front with SIA!

                          http://www.channelnewsasia.com/mobil...n/2492140.html

                          The possible route synergies and transfer traffic from a more integrated Scoot and Tigerair are incredible! Although I would prefer it to just be one brand, like Scoot Short-Haul and Scoot Long-Haul with the battering the brand name has taken in the likes of Australia and what not! Any opinions?

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                          • #14
                            Originally posted by chiraagnt View Post
                            Although I would prefer it to just be one brand, like Scoot Short-Haul and Scoot Long-Haul with the battering the brand name has taken in the likes of Australia and what not! Any opinions?
                            It will most certainly reduce the cost of marketing and overheads, and produce better connections for the customers.

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                            • #15
                              IIRC TR still earns royalties from TT (Tiger Australia)?
                              The world's too large a place not to go wandering.

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