Tigerair Mandala (Jakarta Soekarno-Hatta) has reportedly caught the eye of not only Citilink (QG, Jakarta Soekarno-Hatta), but also Indonesia AirAsia (QZ, Jakarta Soekarno-Hatta) the Indonesian Transportation Ministry’s director for air transportation, Djoko Muratmodjo, has revealed.
According to the Jakarta Globe, Muratmodjo said Mandala's Singaporean parent, Tigerair (Singapore Changi), is looking for long-term investors to assume control of the ailing carrier which has struggled to gain market share since its relaunch from Mandala Airlines (Jakarta Soekarno-Hatta) in 2012.
“Two of the potential investors are Citilink and Indonesia AirAsia, which have submitted proposals [to Tigerair Mandala],” he said.
Tiger Airways owns a 33% stake in Tigerair Mandala, while Indonesian-backed private equity firm, Saratoga Capital, holds 51.3%. The rest is held by creditors.
Sources who spoke to the paper on condition of anonymity said both the Singaporeans and the Indonesians are eager to cut their losses and dispose of their respective shareholdings before July 1. Of the three potential investors for the carrier, which includes an unnamed investment firm, the AirAsia (AK, Kuala Lumpur International) subsidiary is considered to be the strongest, the source said.
On the back of rising oil prices, stiff domestic and regional competition, and a weakening Indonesian Rupiah, Tigerair Mandala suspended a big part of its routes in February in an effort to curb mounting costs.
