Search the Community

SINGAPORE Airlines (SIA) has come to the rescue of Tiger Airways again – this time with hard cash. The national carrier will be injecting up to S$140 million to plug the budget carrier's haemorrhage - PHOTO: SPH 18 Oct5:50 AM Singapore SINGAPORE Airlines (SIA) has come to the rescue of Tiger Airways again – this time with hard cash. The national carrier will be injecting up to S$140 million to plug the budget carrier's haemorrhage. The funds will be part of a proposed rights issue Tigerair announced on Friday to raise S$234 million. With its regional ambitions savaged by fierce competition, Tiger on Friday unveiled a staggering net loss of S$182.4 million for its fiscal second quarter ended Sept 30, 2014, compared with a net profit of S$23.8 million a year ago. It also proposed a rights issue of about 1.2 billion new shares priced at 20 Singapore cents each, a 38 per cent discount to its close of 32.5 cents a share on Thursday. SIA, which holds a 40 per cent stake in the company, said it will subscribe to its entitlement and excess rights shares, up to S$140 million. "Singapore Air is rescuing Tigerair," said K Ajith, a Singapore-based analyst at UOB Kay Hian. "With the conversion of securities and rights offering, there will be less risk to the balance sheet. I don't foresee Tigerair needing more funds after this." Prior to the rights issue, SIA will convert its 189.39 million perpetual convertible capital securities (PCCS) holdings into shares. The conversion will raise SIA's stake in Tigerair from 40 per cent to about 55 per cent, and possibly up to 71 per cent after the rights issue, assuming SIA is the only one to subscribe for its rights and convert its PCCS. SIA will not be making a general offer as Tigerair's minority shareholders had approved a whitewash resolution in March 2013 to waive their rights to receive a general offer as a result of the PCCS conversion. In another telling development, Tigerair said it was exiting Australia, barely months after it exited Indonesia and the Philippines. It will sell its remaining 40 per cent stake in loss-making Tigerair Australia to Virgin Australia for A$1 – Virgin paid A$35 million for its existing 60 per cent stake barely 14 months ago. The estimated net loss arising from the sale is S$60.1 million. "We need to now stem the losses arising from this joint venture and divert our resources back towards our Singapore-based airline in the execution of the turnaround plan," said Lee Lik Hsin, Tiger's chief executive since May and an SIA veteran for 20 years. Dubbed the "Sale of the Century" by some analysts, the move was largely expected given that Tigerair Australia has been suffering operating losses since it started its services in Australia in 2007. Its financial woes worsened after safety breaches grounded its entire fleet in Australia in 2011. Already, the group's plunge into the red for the second quarter ended Sept 30 included S$161.1 million in one-off accounting provisions, comprising S$59.8 million for the divestment of Tiger Australia and S$99.3 million related to the sublease of surplus aircraft which it was forced to sublet at a discount to address its over-capacity headaches. While analysts said it made sense for Tigerair to do a reset and focus on its Singapore carrier and its tie-up with Scoot - SIA's other no-frills, low-fare airline - many were surprised by the extent of the "value destruction". "Shareholders must ask SIA and Tigerair for an explanation. Who's running the show? Details are sorely lacking," said an analyst. Tigerair also needs to convince investors it still has a growth strategy, now that its regional wings have been clipped. "They need to address a strategy going forward because they have divested Australia, they are out of Indonesia, out of the Philippines, so what next now?" said Derrick Heng, analyst at Maybank-Kim Eng. "Are they going to stay as a standalone unit just in Singapore? That will put them at a disadvantage to other players like AirAsia, which is growing across the whole region." It is too early to say if SIA was throwing good money after bad. "On paper, all these make sense. Scoot and Tigerair have lots of synergies they can tap. But how the alliance will pen out, it is still a wait-and-see situation," said an analyst with a foreign bank. Tigerair shares fell almost 11 per cent to a record low of S$0.29 apiece before recovering to end Friday at S$0.31, down 4.6 per cent on the day and nearly 40 per cent so far this year. SIA, a unit of Temasek, was unchanged at S$9.65 a share. In Australia, local media reported that Virgin Australia signalled it plans to cut a bloated Tiger Australia fleet that has hobbled its own turnaround efforts. http://www.businesstimes.com.sg/companies-markets/sia-rescues-bleeding-tigerair-after-shock-s1824m-q2-loss

anyone knows of any workshops that bleed the brakes using vacuum method rather than pumping brakes method? the pricing?

Hi. I am new to leisure cycling. I know there is this website called togoparts but I'm not familiar with the people there and don't wish to do the usual minimum post count before creating a topic. I'm sure there is a sizable group of cyclists in MCF. Just wondering where I can get my hydraulic disc brakes bleeded? How much does it cost roughly? I'm staying in the east and will hope to have a bike shop recommendation. I tried asking a bike shop in bedok called teck hock Hin and was told that he is very busy till late September. ZZzzzz. Maybe brakes bleeding is not a lucrative type of business and is frowned upon by the shop owners. I'm hesitant to go those very old fashioned uncle bicycle shop cos I got a feel that they won't know how to service. Any suggestions please? Pls advise cost too Thanks!

http://www.asiaone.com/News/AsiaOne%2BNews...316-268501.html

Spotted this along Jalan Boon Lay towards Jurong Island at 8am this morning. Traffic was stop go, so managed to snap a few pics to reconfirm what I saw was what I thought I saw. I don't know how it got there....sabotage or black magic or actual need to stop a leak?

Hi all DIYers, Has anyone tried bleeding their ABS equipped brake before? I search the web for info but seems like the procedure is different than those brake system without ABS. Also come across a number of comments that vacuum bleeder is better than pressure bleeding. Anyone can share info on the above? anyway, side track a bit...I have tried changing tranny oil today... used 2 bottles to so call "flush" as i know 2 bottles not enough. but decided not to as too tedious to feed in the 3rd bottle as i had to used funnel and plastic tubing into the ATF dipstick. Takes ages to feed in just one bottle. Hand ache like siow! Maybe will try using water pump meant for aquarium the next time! any one got better idea to feed ATF thru dipstick?

http://www.news.com.au/heraldsun/story/0,2...5005961,00.html [/color] THE moon will fall into Earth's deep shadow on Tuesday, taking on a lustrous red or orange hue during the second total eclipse of 2007. Star gazers will be able to watch as our planet's natural satellite is consumed by celestial dragons, as the Chinese once thought. Those in the Pacific basin, from eastern Australia to the west coast of the north America, will be treated to the full eclipse at 10.37 GMT (8.37pm AEST) and a couple hours before sunrise in Los Angeles and Vancouver. The perfect spot for spectators will be French Polynesia, according to NASA, but the eclipse will not be visible at all in Europe or Africa. The moon does not disappear from view during a full eclipse, but is shielded by Earth for about 90 minutes from the sun's direct light. The longest possible duration for the total phase is 107 minutes, and last occurred in July 2000. A total eclipse can only take place at full moon, and only if the moon passes through the zone, called the umbra, in which the Earth blocks all of the sun's rays. The colour cast by refracted light - which can range from bright orange to blood red to copper to dark grey - depends on the amount of volcanic gas and dust in the atmosphere blocking the sun's light. In the absence of recent eruptions, the moon should be a vivid red or orange, according to NASA. Total lunar eclipses normally occur roughly every couple of years, but this year there will have been two, the other having taken place on March 3. The next chance to see the moon slip entirely into terrestrial shadows will be on February 21, 2008, but after that the wait is longer: December 2010. Further details on these eclipses and information on eclipses in general can be found on http://sunearth.gsfc.nasa.gov/eclipse/lunar.html