Business: Good week - Bad week

Good Week

© Airbus

TIGER AIRWAYS An initial public offering heavily oversubscribed at home in Singapore and internationally raised S$248 million ($178 million). Tiger will use most of the funds to acquire new Airbus A320s to treble its fleet to 68 A320s by December 2015. The rest will go to pay off short-term loans and establish new airlines or operating bases. Boss Tony Davis says share demand is a "strong vote of confidence in our low-cost business model and growth potential".

 

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Bad Week

© Allan Gallery @ flightglobalcom/airspace

ATLANT-SOYUZ The government of Moscow hopes to keep the struggling municipal carrier alive by buying out 49% shareholder Viktor Grigoryev for an undisclosed price to take full control before endorsing a plan to buy 45 new domestic aircraft. Analysts have found it hard to put a value on the share package, given the airline's debts. City authorities have allocated Rb1.8 billion ($61 million) to the carrier; payback through taxes is expected in 10 years.

 

 

Source: Flight International