Tiger Aviation Holdings, the parent company of Tiger Airways Singapore and Australia, has recorded a loss of S$50.8m (A$40m) for the financial year to March 31, according to a regulatory filing by the company.
According to the Herald Sun newspaper, the accounts also show that Tiger’s Australian operations stripped S$20m (A$15.8m) from the parent company’s cash reserves, leaving it with only S$13.2m (A$10.4m) in cash. It also claims that the Tiger Group’s liabilities increased to S$296m (A$233.5m), while assets were valued at only S$187m (A$147.5m).
The result is a major turnaround from the S$9m (A$7.1m) profit recorded by Tiger in the previous year, and is much higher than previously expected. Costs in ramping up its Australian operations, as well as the competitive marketplace forcing down ticket prices, are thought to be the main drivers behind the large loss.