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Tiger names new chief

TIGER Airways has named a Virgin Blue former senior executive as head of its troubled Australian operations.
By · 13 Sep 2011
By ·
13 Sep 2011
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TIGER Airways has named a Virgin Blue former senior executive as head of its troubled Australian operations.

A month after Tiger's six-week forced grounding ended, Andrew David, formerly 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.

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 said Mr David had the operational experience needed to turn around Tiger's flagging fortunes. "They wouldn't appoint him if they were just about to pull out," one said.

Some analysts had expected Tiger to retreat to Singapore.

Chin Yau Seng, acting chief executive of Singapore-based Tiger Airways, said he was confident Mr David could successfully steer the Australian operations.

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Frequently Asked Questions about this Article…

Tiger Airways has appointed Andrew David, formerly chief operating officer at Virgin, as head of its Australian operations. He replaces Tony Davis, who had been brought in from Singapore.

Industry insiders say Andrew David brings the operational experience needed to try to turn around Tiger's flagging fortunes in Australia. The appointment comes shortly after a six-week forced grounding and is seen as a move to stabilise operations.

The appointment signals that Tiger's Singapore parent and cornerstone shareholders, including Singapore Airlines, intend to maintain the airline's Australian operations rather than immediately retreating—information investors can use when assessing the company's regional commitment and operational risk.

The article notes Tiger's Singapore parent and its cornerstone shareholders, explicitly including Singapore Airlines, as parties that appear intent on keeping the Australian operations running.

The new appointment came about a month after Tiger's six-week forced grounding ended, suggesting the management shake-up is part of the response to recent operational problems and the effort to stabilise the airline.

Some analysts had expected Tiger to retreat to Singapore, but appointing an experienced airline executive to lead the Australian arm indicates the company and its major backers are likely committed to staying in the Australian market.

Andrew David's background as chief operating officer at Virgin gives him hands-on airline operational experience. Industry comments in the article suggest that experience is precisely what Tiger needs to address the issues that led to disruption.

Chin Yau Seng, acting chief executive of Singapore-based Tiger Airways, said he was confident Andrew David could successfully steer the Australian operations.