Tigerair Mandala (Jakarta Soekarno-Hatta) will cease operations with effect from July 1, 2014 after talks with prospective investors AirAsia (AK, Kuala Lumpur International) and Citilink (QG, Jakarta Soekarno-Hatta) collapsed at the eleventh hour. In a statement, the airline's parent, Singaporean LCC, Tigerair (Singapore Changi), said the decision to terminate the loss-making carrier's operations was made in concert with other shareholders among which is Indonesian private equity firm, Saratoga Capital.
"...Together with the Saratoga Group and PT Cardig International, the key ultimate shareholders of Mandala have vigorously explored various options in recent months. The partners concluded that Mandala would not be able to sustain its operations. As a result, they have decided to cease funding the airline," Tigerair's filing with the Singaporean bourse read.
Tigerair says its decision to wind down Mandala will enable it to focus on its own turnaround strategy which includes fleet consolidation, strategic alliances and an asset-light growth model.
Mandala's last flight, RI545, is routed Hong Kong International to Denpasar on July 1, 2014.
