Tigerair goes green with new aircraft deal
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
Tigerair is planning for a more fuel-efficient future, with a major order for 37 new aircraft.
The low-cost carrier has ordered 37 Airbus A320neo aircraft, which will be powered by Pratt & Whitney’s new PurePower engines, which are designed to reduce fuel burn.
As a result, Tigerair has now cancelled a previous order for nine A320s, although the new purchase agreement also gives the airline the option of adding a 13 additional aircraft to the order, and converting the A320neos to the larger A321neo model.
“We have recalibrated our strategy and taken the necessary steps to re-position Tigerair for a brighter future. This deal effectively dissipates some concerns over a potential capacity overhang in the next couple of years. It also allows us to continue building on our leadership position in budget travel at a measured pace,” said Tigerair’s group CEO, Koay Peng Yen.
Tigerair has been adjusting its regional strategy recently, having divested stakes in its Australian and Philippine units to Virgin Australia and Cebu Pacific respectively. Questions remain over the future of Indonesia-based Tigerair Mandala, while the airline is also planning to launch Tigerair Taiwan in partnership with China Airlines.
Tigerair said the cancellation of the existing nine orders, together with the staggered delivery of the new A320neo aircraft over a period of eight years from 2018 to 2025, will allow it to “optimally manage its capacity going forward, improve its cost efficiency, and advance its fleet modernisation plan”.
The new A320neo (or ‘new engine option’) will be Airbus’ most fuel-efficient single-aisle aircraft to date when it launches next year. As well as the new engines, the jets will feature large wing-tips, and these new design features are expected to deliver approximately 15% greater fuel efficiency than the current A320. So as well as being more environmentally-friendly, they will also help Tigerair reduce its fuel bill.
The transaction has a list price of US$3.8 billion, although Tigerair said the negotiated price was “significantly lower”.
Comments are closed.