Tiger Airways is to stop flying its loss making Indonesian venture, Mandala, as it tries to restructure.
The low cost airline, part-owned by Singapore Airlines, said Mandala will cease flights from July 1, in a statement to the Singapore stock exchange yesterday.
It said the Indonesian venture would be unable to sustain its operations and the airline’s key shareholders decided to cease funding.
Tiger Air has been grounding planes and cancelling aircraft orders as part of a restructuring after mounting losses led largest shareholder Singapore Air to name a new chief executive officer for the low-fare airline, reports Bloomberg.
Budget airlines in Southeast Asia face stiff competition with half a dozen carriers in the market.
