Tiger Airways to sell or shut Indonesia affiliate if no sign of turnaround: Sources
Published on Mar 3, 2014 1:57 PM
SINGAPORE (REUTERS) - Singapore's Tiger Airways aims to sell or close its Indonesian joint venture unless there are signs of it turning around this year, people familiar with the matter said.
PT Mandala Airlines resumed flights in 2012 after financial restructuring under which Tiger bought a one-third stake, raised to 35.8 per cent in September. Even so, Tiger lost nearly $40 million in the venture in April to December.
Tiger and Indonesian private equity firm Saratoga, which owns 51 per cent of the venture, are now unwilling to make further investment, said the people, who were not authorised to speak publicly on the matter and so declined to be identified.
"The writing is on the wall," said one company source.
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