Credit: Reuters/Mick Tsikas
A watertower painted with Tiger Airways logos is seen at Melbourne Airport July 7, 2011.
Tiger said an existing order for nine Airbus A320 aircraft, part of a larger order agreed in 2007, will now be cancelled. These aircraft were originally scheduled for delivery in 2014 and 2015.
The long-term fleet renewal and expansion comes as Tiger, which is about 40 percent-owned by Singapore Airlines Ltd (SIAL.SI), takes steps to try to prevent a third straight year of losses. In January it sold its Tigerair Philippines business to Cebu Pacific, the archipelago's biggest airline, cutting its losses in a market where a sharp increase in available seats pushed down ticket prices.
'We have re-calibrated our strategy and taken the necessary steps to re-position Tigerair,' Tiger chief executive Koay Peng Yen said in the company's statement. 'This deal effectively dissipates some concerns over a potential capacity overhang in the next couple of years.' [ID:nSNZ7bC2JW]
Tiger said the negotiated price for the new order was 'significantly lower' than the list price. The jets will be powered by engines from Pratt & Whitney.
(Reporting by Anshuman Daga; Editing by Kenneth Maxwell)
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