Tiger Air: -0.5% at $1.95, unable to hold onto early morning gains. Street divided over Tiger’s prospects, with DMG maintaining Buy with $2.13 target, while RBS downgrades to Sell cutting target to $1.58 from $1.95…
Current concerns mainly relate to Tiger’s recent spate of flight cancellations arising from shortage of pilots, as well as its strategy with regard to leasing of aircraft to SE Asia Airlines (SEAIR), and could be a dampener on share price in near term...
However, Tiger may not be too negatively affected over the longer term. Mgt has apparently recruited new pilots, and they are expected to be operationally ready once their training ends in a month’s time. Also, we mentioned previously that the aircraft leasing could be part of a broader partnership btwn Tiger and SEAIR, where SEAIR flies the aircraft under the Tiger flag. This would effectively allow Tiger to expand its route network within the Philippines, and would be positive for Tiger.
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