Low Cost Asian Carrier Plans Take-Off This Year

Less than three months after announcing its start up, Singapore's low cost airline, Tiger Airways, has appointed a Chief Executive Officer and named its Chairman. With the appointment of a dedicated chief executive, the carrier will push full steam ahead with its plans to take off this year as scheduled.

William A. Franke, managing partner and co-founder of Indigo Partners, one of the shareholders in the venture, takes up position as chairman of Tiger. Patrick Gan, a Singaporean who comes with extensive regional experience, is Tiger's new CEO, responsible for overseeing the airline's operational and administrative set up and development.

 Gan is a newcomer to the aviation industry, having spent 18 years in the pharmaceutical sector. He brings to Tiger his breadth of experience in management, marketing and sales.

"Patrick has the experience, capability and aptitude we were looking for in a CEO," said  Franke. "He has international experience, has worked in regional markets, started up divisions and turned around companies in his previous positions. With his record in management, sales, marketing, and troubleshooting, we have full confidence that he is the right person for the job ahead.

"An advantage is that he comes with no airline industry baggage, so to speak, so we welcome his fresh perspective to our business."

Tiger's partners are Singapore Airlines; Temasek Holdings; Indigo Partners LLC, the aviation partnership of David Bonderman, Bill Franke and Stephen L. Johnson; and Irelandia Investments Limited, the private investment arm of the Ryan family -- Dr Ryan is best known as the founder of Ryanair, the highly successful low-cost carrier based in Dublin.

Franke brings to Tiger a wealth of experience in the aviation industry, through Indigo's investments in the sector as well as through his own experience, in areas ranging from aircraft leasing and financing to the management of an airline through bankruptcy to profitability.

 Gan's experience in his previous positions includes starting up new business in various Asian markets, regional responsibility for up to 16 markets, international experience including stints in Switzerland, Hong Kong, China and Taiwan, involvement in mergers and turning around divisions that were flagging.

Aiming to meet its schedule for take off in the last quarter of 2004,  Gan's immediate priority will be to hire for key positions and submit the AOC. Tiger anticipates a staff strength of some 100, including pilots and cabin crew.

 Gan will also lead crucial negotiations with airports in the region as the airline identifies its route network. Tiger plans to operate a single type of aircraft, and negotiations are currently underway with manufacturers and lessors.

 Gan said that the various tasks he undertook in his previous positions qualify him for the job at hand. "It may have been a different sector, but the business fundamentals of starting up and managing a company remain the same. My focus at Tiger will be to keep costs down so that we can offer passengers the lowest possible fares in the market.

"We want Tiger to be the 'gold standard' for budget airlines in the region -- lowest possible fares while at the same time offering state-of-the-art aircraft, clean and comfortable inflight facilities, most convenient connections, and staff who are committed to the success of the airline.

"We have pedigree partners with the experience and resources to ensure that we can strongly establish Tiger as a leader in Asia's low cost carrier market."

FMI: www.singaporeair.com.sg