Tiger Airways

Tiger Airways: OCBC downgrade to Hold with $0.81 TP. House note that while new Tiger Airways’ CEO, Mr. Koay Peng Yen, outlined a new initiative to focus on customer satisfaction and TGR’s passenger data for Aug revealed MOM increases of 4% and 5% for the number of passengers carried on its Singapore and Australian operations respectively, a full recovery for TGR remains an optimistic proposition. Tiger Aus currently faces a challenging environment with an influx of excess capacity in the market following Qantas’s plans to increase capacity in response to Virgin’s additions. With profitability for Tiger Australia negatively impacted and fuel prices creeping upwards, house lower projections accordingly.