Tiger Airways off 2.0% at 2-week low of $2.00 as budget carrier was forced to cancel number of flights last weekend due to grounding of 2 planes following technical problems. Given the tight scheduling and high turnaround times for budget carriers, any aircraft disruptions will have a much more severe impact compared to the full-service carriers.
Factoring in additional flight cancellations due to pilot resignations over last 2 months, UOB KayHian cuts earnings estimate for current fiscal FY11 by 23.9% to $42.9m; keeps Sell call with $1.41 target. If $1.96 support fails to hold, stock may be headed for $1.87 August trough.
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