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Tiger Airways buys 33% of Mandala Air.

Tiger Airways buys 33% of Mandala Air.

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There seems to be a future again for the now still defunct Mandala Air. Last January 12th Mandala cancelled all flights and filed for bankruptcy. Since then they have been looking for new investors and now they seem to have found them. Tiger Airways announced last Thursday they will buy a 33% stake in Mandala Air and Indonesian investment company Saratoga will buy 51%. With these new investors Mandala will return as a low-cost Indonesian airline. Saratoga said they are convinced of the growth opportunities in the Indonesian aviation sector due to the fact Indonesia is an archipelago and because of the strong economic growth forecast. Also with the partnership of Tiger Airways, Mandala has a very experienced partner in offering low-cost flights. Both new partners said they want to change Mandala into a fully low-cost airline and hope to have the first Mandala flights as soon as June. With these new strong partners Mandala Air seems to have a bright future again, but then again it is still to be seen if Mandala can compete with the growing number of low-cost airlines in Indonesia. Analysts have said that the reason for the bankruptcy was the failed attempt of Mandala to enter the budget sector in the first place, which reduced income but they were unable to reduce costs as well. According to Tiger Airways statement Mandala will operate both domestic and a few international routes but exact destinations are not yet known.

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