Tiger Air

Tiger Air: SCB downgrade to U/p with TP $0.31. The house notes that Tiger Airways reported normalised losses of $30mn in 3QFY14, as chronic overcapacity in Singapore resulted in an $8.8m operating loss against expectation of a marginal operating profit. Losses from the associates ballooned to a staggering $111.4mn. Although we are positive on Tiger’s ‘assetlight’ strategy, and believe it will take time to bear fruit and forecast associate losses of $264m and $ 61m in FY14E and FY15E, respectively. Overall downgrade Tiger to Underperform from In-Line in view of expectation of losses.