Tiger Air

Tiger Air: its 33%-owned Mandala Airlines will resume flights in Apr, after Indonesian authorities reactivated Mandala's air operator's certificate.
Mandala will operate Airbus A320 aircraft and adopt Tiger's business model to offer low-fare travel to int’l and domestic Indonesian destinations within a 5-hr flying radius. Details on initial routes will be announced soon.

News is positive for Tiger, as it effectively expands the no. of bases the budget carrier has across the region. In addition, Tiger now has the opportunity to deploy its excess aircraft by leasing them to Mandala.

Separately, CIMB notes that the voluntary administration of budget carrier, Air Australia (AA) last Friday is a big boon for Tiger.
AA’s grounding could lead to an estimated 100k pre-bookings not being honored. Also AA operates 7 aircraft out of Brisbane Airport, with ~40k seats weekly on the Brisbane-Melbourne route, or ~5% of total route capacity, similar to Tiger. CIMB notes that AA’s exit could lead to stronger load factors and higher yields for Tiger, though Tiger’s ability to profit from the situation could be limited by its flight restrictions. AA’s demise could also expedite Tiger’s quest for a second base in Brisbane.
The house keeps its Trading Buy rating with TP $0.87, based on 20x CY13 P/E.