May 7 (Bloomberg) -- Tiger Airways Holdings Ltd., a budget carrier part owned by Singapore Airlines Ltd., named Lee Lik Hsin chief executive officer after it expanded just before a drop in demand, causing losses in four of six quarters.
Lee, president of Singapore Airlines Cargo Pte, will replace Koay Peng Yen effective May 12, the budget carrier said in an e-mailed statement today. Lee has been Singapore Air’s representative on Tiger Air’s board, it said.
Koay is leaving Tiger Air after 21 months on the job, following quarterly losses that prompted it to exit the Philippine market and shrink its Mandala discount venture in Indonesia. The airline will ground eight aircraft in the fiscal year ending in March and canceled orders for nine planes to cut costs and curb capacity.
Tiger Air’s growth was stymied when the market sagged in mid-2013 as capacity was larger than demand, the airline said in the statement. The carrier has been consolidating services to revive profit, it said.
Tiger Air ordered 37 Airbus Group NV planes in March, canceling agreements to buy other planes as it shifted to more fuel-efficient models. The order for single-aisle A320neo planes is valued at $3.8 billion and is for delivery between 2018 and 2025. The carrier has the option to increase the order by as many as 13 aircraft and also to convert the model to a bigger variant.
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