SINGAPORE, June 2 ― Tiger Airways Holdings Ltd., the unprofitable low-fare carrier part owned by Singapore Airlines Ltd., dropped the most in almost a month after saying it’s considering a fundraising plan to improve liquidity.
The stock dropped as much as 3.8 per cent, the biggest decline since May 5, to 51 Singapore cents and traded at 52 cents as of 9:01 am in the city. The shares jumped 18 per cent May 30.
The company is in preliminary stages of discussions on its fundraising proposal, Tiger Air said in a statement to the Singapore stock exchange. The airline is “aware of rumours” of possible “corporate action” by Singapore Air, the carrier said without elaborating. The statement was in response to a stock exchange query after the May 30 stock jump.
Tiger Air named Singapore Air’s Lee Lik Hsin as its new chief executive last month to stem losses that had prompted it to exit the Philippine market and shrink its discount venture in Indonesia. The airline will ground eight aircraft in the fiscal year ending in March and has cancelled orders for nine planes to cut costs and curb capacity.
Singapore Air owns 40 per cent of Tiger Air, according to data compiled by Bloomberg. ― Bloomberg
