Tiger sub-leases 12 jets to IndiGo, makes S$93m provision

Singapore

BUDGET airline Tiger Airways is sub-leasing 12 aircraft to Indian carrier IndiGo as it seeks to rightsize its fleet amid overcapacity in the market, which will see the carrier making a one-off accounting provision of some S$93 million.

In addition, the group said it is "reviewing various funding options", including a potential rights issue, to strengthen its balance sheet and raise cash for general funding needs.

Most of the 12 aircraft were previously operated by Tigerair Philippines - in which Tiger has divested its stake - and by loss-making Tigerair Mandala, which was shut down in July. "This sublease arrangement enables the group to reduce excess capacity significantly and h…