Tiger appoints a new chief

TIGER AIRWAYS has named a former senior executive at Virgin Blue as the chief executive of its troubled Australian operations, in a further sign it intends to tough it out in the local market.

By InvestSMART · 13 Sep 2011

By InvestSMART ·
13 Sep 2011

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TIGER AIRWAYS has named a former senior executive at Virgin Blue as the chief executive of its troubled Australian operations, in a further sign it intends to tough it out in the local market.

A month after Tiger's six-week forced grounding ended, Andrew David, formerly the chief operating officer at Virgin, has been appointed to replace Tony Davis, who was brought in from Singapore to sort out the airline's woes in Australia, including a failure to heed warnings from the air safety regulator.

The appointment of an experienced airline executive signals that Tiger's Singapore parent and its cornerstone shareholders, including Singapore Airlines, intend to maintain the budget airline's Australian operations.

Industry insiders described it as a "very good" appointment because Mr David has the operational experience needed to turn around Tiger's flagging fortunes, especially at the low-cost end of the market. "They wouldn't appoint him if they were just about to pull out," one said.

Some analysts have expected Tiger Airways to retreat to its main base in Singapore.

Mr David, who is originally from Britain, had been seen as a potential replacement for Virgin's co-founder, Brett Godfrey, but lost out to John Borghetti for the top job almost two years ago. He left Virgin late last year, one of a number of departures of senior managers who had worked under Mr Godfrey.

Before joining Virgin in 2005, Mr David held a number of senior management roles at Air New Zealand, including chief information officer and head of strategy and planning.

Mr David is on holiday in Europe and was not available for comment yesterday. He will begin on October 17, two weeks before Mr Davis will officially leave Tiger.

Mr Davis, who was previously the boss of Tiger's Singapore parent, is the third chief executive of the Australian business to leave in 18 months. His departure was announced two weeks ago.

Chin Yau Seng, the acting chief executive of Singapore-based Tiger Airways, said he was confident Mr David could steer the company's Australian operations. "He brings with him a wealth of experience in the airline business and a proven track record as a leader," he said.

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Frequently Asked Questions about this Article…

Who has been appointed chief of Tiger Airways' Australian operations?

Tiger Airways has appointed Andrew David — a former chief operating officer at Virgin Blue — as chief of its Australian operations. He begins the role on October 17 and was described by industry insiders as having the operational experience needed to help turn the airline around.

Why did Tiger Airways appoint Andrew David and what does his appointment signal to investors?

The appointment of Andrew David signals that Tiger's Singapore parent and cornerstone shareholders, including Singapore Airlines, intend to maintain and tough it out in the Australian market. Industry commentators called it a "very good" appointment because of his operational expertise at the low‑cost end of the market.

When does Andrew David start and what is the transition timeline with Tony Davis?

Andrew David will begin on October 17. His start date is two weeks before Tony Davis will officially leave Tiger, giving the business a short overlap for transition; David was on holiday in Europe and not available for comment at the time of the announcement.

What operational problems has Tiger Airways Australia faced recently that investors should know about?

Tiger's Australian operations went through a six‑week forced grounding that ended a month before the appointment, and the business faced issues including a failure to heed warnings from the air safety regulator. These operational and regulatory problems were part of the reasons leadership changes were made.

What is Andrew David’s airline industry background and relevant experience?

Andrew David was formerly chief operating officer at Virgin Blue and previously held senior roles at Air New Zealand, including chief information officer and head of strategy and planning. He is originally from Britain and was viewed as a capable operational leader with experience in low‑cost airline operations.

Does this leadership change mean Tiger Airways' parent will not pull out of Australia?

The company’s decision to appoint an experienced executive like Andrew David — supported by Singapore Airlines and other cornerstone shareholders — was interpreted as a sign they intend to maintain Australian operations rather than retreat to the Singapore base, despite some analysts previously expecting a pullback.

How stable has leadership been at Tiger Airways Australia recently?

Leadership has been unstable: Tony Davis is the third chief executive of the Australian business to leave in 18 months, highlighting ongoing management turnover amid the airline’s troubles.

What did Tiger Airways' acting chief executive say about Andrew David's appointment?

Chin Yau Seng, acting chief executive of Singapore‑based Tiger Airways, said he was confident Andrew David could steer the Australian operations, noting that David brings a wealth of airline experience and a proven track record as a leader.