Tiger Secures Aircraft Funding
Singapore-based low cost airline, Tiger Airways, has secured full funding for the first of its four new Airbus A320 aircraft from the Aviation Capital arm of the Royal Bank of Scotland. These additional four aircraft, which will be delivered during 2006 and 2007, are part of the recently announced order by Tiger Airways for a total of eight new A320 aircraft from Airbus which have a combined list price of over US $500m. This aircraft order will enable Tiger Airways to treble its fleet from the current four aircraft by the end of 2007 and enable the airline to fly between 4 and 5 million passengers a year.
“Royal Bank of Scotland is one of the top ten banks in the world and we are delighted that Tiger Airways has been able to establish such a strong relationship. I am confident that this transaction will represent the start of a long and mutually beneficial association between the Airline and RBS.
Having started with only two Airbus A320 aircraft in September last year, Tiger Airways has grown and will continue to grow as one of the world’s leading low fare airlines. This expansion to our fleet, represents our continued commitment to offer our customers across the region with even more travel opportunities and the lowest possible fares” said Tony Davis, CEO of Tiger Airways.
RBS will provide the financing on a sale and lease back basis which involves the airline selling the four aircraft to the bank and leasing them back on long term operating leases.
Tiger Airways currently flies to 10 cities in six countries (Singapore, Thailand, Vietnam, Macau SAR, the Philippines and Indonesia). Flights to Krabi, Thailand, Tiger Airways’ 11th destination, will commence on 7 October 2005 while pan-regional flights between Macau and Manila (Clark) will commence on 30 October 2005.