Low cost Indonesia airline Tigerair Mandala will be abandoned and closed by its owners, including 35.8 percent stake holder Tiger Airways Holdings of Singapore, on 30 June.
The announcement of its demise was made to the Singapore Stock Exchange after the close of trading this evening.
The Tigerair franchise, originally branded as Tiger Airways, has now failed in Indonesia as well as the Philippines.
It operates in Australia as the 60 percent Virgin Australia owned Tigerair Australia operation. There is no reason to believe that Tigerair Australia will be affected by the Philippine or Indonesian failures, other than to reflect on the damage those two ventures have done to the trans border brand, and to the Singaporean investors in the franchise, including Singapore Airlines which is now reported as holding 40 percent of the peak holdings company.
Tigerair Mandala has a fleet of 13 A320s, which will add to the growing overhang of idle and thus costly and mainly leased aircraft that has been building up in the Asia because low cost operations have variously failed to gain market traction, or even approval to operate (Jetstar Hong Kong) or been subject to regulatory delays in expanding (Jetstar Japan) or been totally and comprehensively stuffed up (Jetstar Pacific in Vietnam).