Tiger Air to Consider Buying Airbus, Boeing Aircraft (Update1)
By Anand Krishnamoorthy and Susan Li
June 4 (Bloomberg) -- Tiger Airways Pte, the budget unit of Singapore Airlines Ltd., will consider ordering more planes from Airbus SAS or Boeing Co. as it expands into India and Australia.
Tiger will issue a request for proposals for single-aisle aircraft from the world's two biggest planemakers in a few months, said Tony Davis, the airline's chief executive officer, in an interview in Singapore today. He declined to say how many planes the carrier may buy.
Tiger joins AirAsia Bhd., Southeast Asia's largest discount carrier, and other airlines in the region that want to buy more planes because of increasing demand for travel. Growth in Asia- Pacific passenger traffic is estimated to outpace the global average, according to the International Air Transport Association, which represents more than 250 airlines.
``For the expansion that we are planning, we need more planes,'' Davis said.
Malaysian Airline System Bhd., the country's largest carrier, yesterday said it plans to ask for proposals for twin-aisle planes from Airbus and Boeing before December. Rival AirAsia has 150 narrowbody planes on order.
Carriers in India, Thailand and other Asian countries are also ordering planes.
Tiger, which has a fleet of nine Airbus A320 aircraft, has assured deliveries for 11 more of the same family of planes by the end of the decade. Still, the airline is open to a bid from Boeing, Davis said.
``As a consumer, it's good to keep an option open for both types of manufacturers considering how competitive it's these days and because of the delivery schedules.''
The airline has an offer for a sale and lease-back for seven of the planes it will take delivery of, Davis said. The carrier has ``no firm plan'' now for an initial public offering, he said.
To contact the reporter on this story: Anand Krishnamoorthy in Singapore
anandk@bloomberg.net