Standard Chartered have signed two new financing deals with Tiger Airways for the pre-delivery payments (PDP) of six Airbus aircraft and the purchase of an additional seven planes.
Standard Chartered were unable to reveal exactly how much each deal was worth, but disclosed the sums to be in the region of multi-millions of US dollars.
The PDP financing arrangements relates to the delivery of six Airbus 320s, scheduled by December 2011.
The bank is also the mandated lead arranger for an ECA-backed financing for Tiger Airways acquisition of seven more Airbus 320’s in January 2011, raising the number of planes that the airline carrier owns to nine.
This comes after January 2010’s ECA-backed financing with Coface for the airline’s acquisition of two Airbus 320s and an earlier PDP financing arrangement for five aircraft, both deals were also by Standard Chartered.
Tiger Airways currently has a lease for the majority of its 19-strong fleet, with the number projected to rise to 68 by December 2015.
The airline carrier says that the lower operational costs of owning planes, compared to leasing them, will allow them to offer the lowest possible fares to customers.
Tony Davis, president and CEO of Tiger Airways, comments: “We are grateful for the strong support that we have received from Standard Chartered bank and their confidence in Tiger Airways. As we continue to grow in Asia and Australasia, we look forward to acquiring more of our own aircraft through ownership financing arrangements.”
As well as building on the bank’s relationship with the airline carrier, the deals are also a show of force for Standard Chartered, as Simon Perkins, managing director of aviation finance at the bank, says: “These two transactions, hot on the heels of the earlier deals in January, demonstrate Standard Chartered bank’s strength of liquidity and capital. We are absolutely proud to be a part of Tiger Airway’s achievements to date and relish the opportunity to partner with them in the successful build out of their strategy in the future.”
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