Tiger Airways shows CEO the exit as losses soar
Reuters in Singapore
Singapore’s Tiger Airways said it would be replacing its chief executive with an executive from its largest shareholder, Singapore Airlines, days after the budget carrier reported a big increase in its losses.
Lee Lik Hsin, a 20-year veteran of SIA, which owns 40 per cent of Tiger, will become chief executive from Monday, replacing Koay Peng Yen, who joined Tiger less than two years ago, the airline said on Wednesday.
“Tigerair Singapore, which had been growing at the rate of 30 per cent in the past three years, hit turbulence when the market sagged in mid-2013 through the imbalance of capacity and demand,” Tiger said.
“Nonetheless by the time of Mr Koay’s departure, Tigerair Singapore had started the process of consolidating its services in preparation for a decisive turnaround in its prospects.”
Tiger’s shares have declined nearly 40 per cent over the past year and are trading near a record low.
The airline reported a net loss of S$95.5 million (HK$593 million) in the quarter to March 31, more than six times the loss of S$15.4 million in the same period last year.