Tiger Air

Tiger Air: DBSV says Tiger's turnaround story is intact. Operations in Australia are turning around as daily sectors rebound to pre-suspension levels. Singapore was already back in the black last quarter but Australia’s financial recovery will be dampened by ongoing price war. While the house expects a larger net loss of $7m in FY13, and lowered FY14F net profit by 7% to $61m, it notes the appointment of new CEO, Mr. Koay is a positive. Mr. Koay highlighted that Tiger should be flexible in exploring new growth avenues, including introducing new products and services and offering enhanced connectivity to improve customer experience. DBSV believes given Tiger’s recent history, fresh ideas could help to spur the Group’s expansion prospects. Maintains Buy on a lowered TP of $0.90 (from $0.92 previously).