- POSTED: 23 Jun 2014 20:59
- UPDATED: 25 Jun 2014 11:52
Tigerair Group to provide all affected customers with a flight transfer where possible, or a refund on their air ticket.
SINGAPORE: Around 70,000 people have been affected by Tiger Airway's decision to shut down Indonesian associate Tigerair Mandala from July 1, the Singapore budget carrier said on Monday (June 23).
These include customers in Singapore who had made advance bookings on flights to and from Jakarta and Bali, Tigerair said at a media briefing.
Tigerair last week announced that shareholders of Tigerair Mandala had decided to stop funding its operations due to the difficult operating environment.
"As a gesture of goodwill, Tigerair Group will provide all affected customers with a flight transfer where possible, or a refund on the ticket," it said.
Tigerair owns 35.8 per cent of Tigerair Mandala, whose other shareholders include Indonesia's Saratoga Group and PT Cardig International.
Mr Xavier Lim, Tigerair's Chief Corporate Services Officer, said around 20,000 customers have already opted for a refund or a transfer to a Tigerair flight. He also stressed that the Singapore carrier was not legally obligated to compensate Tigerair Mandala customers as they are separate entities.
Tigerair, which is 40 per cent-owned by Singapore Airlines, has been scaling back its overseas operations amid overcapacity in Southeast Asia's budget airline sector. The budget carrier has lost money in its last three financial years.