March 24, 2014 / 1:37 AM / 5 years ago

Singapore's Tiger Airways orders Airbus jets valued at $3.8 billion

A watertower painted with Tiger Airways logos is seen at Melbourne Airport July 7, 2011. REUTERS/Mick Tsikas

SINGAPORE (Reuters) - Singapore’s Tiger Airways Holdings Ltd TAHL.SI has placed an order for 37 Airbus (AIR.PA) A320neo aircraft valued at $3.8 billion at list prices, taking delivery of the planes from 2018 to 2025, the carrier said in a statement on Monday.

Tiger said an existing order for nine Airbus A320 aircraft, part of a larger order agreed in 2007, will now be cancelled. These aircraft were originally scheduled for delivery in 2014 and 2015.

The long-term fleet renewal and expansion comes as Tiger, which is about 40 percent-owned by Singapore Airlines Ltd (SIAL.SI), takes steps to try to prevent a third straight year of losses. In January it sold its Tigerair Philippines business to Cebu Pacific, the archipelago’s biggest airline, cutting its losses in a market where a sharp increase in available seats pushed down ticket prices.

“We have re-calibrated our strategy and taken the necessary steps to re-position Tigerair,” Tiger chief executive Koay Peng Yen said in the company’s statement. “This deal effectively dissipates some concerns over a potential capacity overhang in the next couple of years.” [ID:nSNZ7bC2JW]

Tiger said the negotiated price for the new order was “significantly lower” than the list price. The jets will be powered by engines from Pratt & Whitney.

Reporting by Anshuman Daga; Editing by Kenneth Maxwell

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