Posted on: 18 June 2014
Mandala Airlines has announced that its airline – operating under the brand name of Tigerair Mandala – will cease operations from 1 July, the last flight RI545 departing Hong Kong for Denpasar at 02:35 with all other flights that day and thereafter cancelled.
Tiger Airways Holdings bought a 33.0% stake in Mandala in January 2012, and increased it to 35.8% in September 2013 through its wholly owned subsidiary, Roar Aviation. Together with the Saratoga Group and PT Cardig International, the key ultimate shareholders of Mandala report that they have “vigorously explored various options in recent months”.
“Mandala’s financial results reflect the challenges that it is facing in the difficult operating environment. The partners in Mandala have jointly come to the conclusion to cease funding the airline’s operations. Nevertheless, Indonesia remains an important market for us, and we will continue to maintain an active presence through Tigerair Singapore,” said Lee Lik Hsin, Group CEO of Tigerair.
The decision to pull out of Mandala will enable Tigerair Group to focus on its turnaround strategy, which includes fleet consolidation, strategic alliances and an asset-light growth model.
Tigerair Group will provide all affected customers with a flight transfer where possible, or a refund on the ticket.