SEAir posts losses as it steps up network expansion
Southeast Asian Airlines (SEAir) posted hefty losses in October to December last year, as the company worked to expand its route network with the backing of Singapore’s Tiger Airways, one of its major shareholders.
The latest quarterly report by Tiger Airways showed that its share in the losses of SEAir, now operating as SEAir-Tiger, reached 8.3 million Singapore dollars.
“The relatively young airline continued to build its presence among larger competitors in a competitive market arena,” Tiger said in its disclosure to the Singapore bourse.
SEAir operates a fleet of five aircraft, all leased from Tiger Airways. Tiger Airways said new routes would be progressively added to SEAir’s network, covering four international routes out of Clark Freeport, Pampanga and seven domestic routes out of Manila.
“This will enable SEAir to reach out to a growing business and leisure travel market in the Philippines,” the Singapore firm said.
Tiger Airways Holdings Ltd. posted a profit after tax of 2 million Singapore dollars in October to December 2012, compared to a loss after tax of 17.4 million Singapore dollars in the same quarter the year before. This was on the back of a 47.1-percent rise in revenue to 247.7 million Singapore dollars.
This year, Tiger Airways said SEAir would continue to face challenges in the Philippines’ competitive market, and would thus likely post losses for the full year of 2013.
“Nonetheless, the longer-term potential of the … Philippine air travel market is promising. SEAir will work towards increasing (its market share) through possible partnerships with industry players, the introduction of new routes, and improving customer experience,” SEAir said.
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