Tiger Airways has moved ahead with its proposed purchase of a 33 percent stake in Indonesia’s Mandala Airlines.
Mandala suspended services in the New Year pending a financial reconstruction in which Indonesia’s Saratoga Group will own a 51% stake, and the remaining 16% will be owned by the previous shareholders and creditors of the airline.
Completion of restructuring is scheduled to take approximately 90 days, after which flight operations are expected to commence.
The restructured airline plans to adopt the Tiger Airways business model, and will offer low cost travel to international and domestic Indonesian destinations within a 5-hour flying radius. This would allow potential routes in SE Asia and to Perth, Broome, Darwin and Cairns from Bali, Sumatra and Java.
Like other airlines in the Tiger Airways group, the restructured airline plans to operate Airbus A320 aircraft.
