I refer to CNA’s “Tiger Airways continues recovery with higher Q3 net profit”.
CNA has tried to pull a fast one on unsuspecting readers. Maybe its readers are not as intelligent as it has assumed?
Tiger Airways is a failure and there’s no need to mask this with half truths. The chart below says it all.
Tiger Airways was set up by Temasek Holdings and SIA. Whenever our scholar-managed companies compete internationally without PAP’s ability to tweak the rules of the game to its advantage, failure is assured. Next to go may be Scoot.
“Tiger’s fuel costs fell by a third to $43.5 million”, ie its expenditure reduced by $21.75 million. Tiger’s net profit of $6.8 million therefore resulted directly from the collapse of oil prices so what recovery is CNA talking about? Remove its fuel savings and the headline will read “Tiger Airways losses continue to mount, $14.95 million in Q3”.
Temasek’s tiger is now mewing like a kitten and if SIA did not offer to take it private, it will be heading towards delisting in a few years anyway.
This will lead to a loss of face for Temasek and what better way to conceal this with SIA’s bid?