Tiger Air: Citi has insights towards grp’s search for a new CEO. Recall that current CEO Mr. Chin Yau Seng is returning to SIA, and house cite that the background of Tiger’s new CEO should be closely watched as a signal for Tiger’s long-term direction. An appointee with no affiliation to SIA or Temasek may signal Tiger’s commitment to its Pan-Asia ambitions and independence as a point-to-point carrier, while an appointee within SIA’s ranks may signal renewed commitment to forge closer relationships with SIA’s stable of airlines, but may throw up questions on the reasons behind Mr. Chin’s departure.
Overall, expect minimal short-term impact, noting that Mr. Chin has steered the group well past its worst moment since coming on board: internal processes were strengthened, governance
was improved, and Mandala Airlines appears to be heading for a smooth start. House however still maintains Sell rating with $0.55 TP, as its turnaround may be subject to multiple external uncertainties beyond management’s control.
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