Tiger looks to catch-up after rights issue and departure of founding CEO Tony ...
Tiger Airways is trying to move forward after surviving the most challenging chapter in its six-year history, capped off recently by a further shake-up in Tiger ’s executive team, with founding CEO Tony Davis leaving the group, and a rights issue. Tiger's position going forward is significantly improved, but it still has several challenges to overcome if it has any chances of catching up with rival LCC groups AirAsia and Jetstar , which have successfully established pan-Asian footprints while similar efforts at Tiger have so far failed.
Tiger has confirmed that Tony Davis, who led the carrier through its start-up phase beginning in 2005 and from Feb-2007 until Jul-2011 oversaw its pan-Asia expansion strategy as group CEO, will leave the company on 1-Nov-2011. Mr Davis is joining Irelandia Aviation, the Declan Ryan-led investment firm that was an original shareholder in Tiger and now owns stakes in LCCs Ryanair and privately-held Mexican operator VivaAerobus , and formerly Allegiant Air .
Tiger also has announced that Chin Yau Seng has been appointed to the permanent position of group CEO. Mr Chin has served as Tiger’s acting group CEO since shortly after the grounding of Tiger Australia on 1-Jul-2011. Mr Davis has since been serving as chief of Tiger Australia, where following the grounding he took over from local manager Crawford Rix. Tiger is now looking to recruit a new chief for its re-launched Australian unit, which it is growing steadily in hopes of avoiding the safety and operational immaturity that led to its grounding.
During Tiger's grounding it was unclear how much knowledge Mr Davis had of the preceding events and what opportunities he had to improve safety and avoid the grounding. Tiger Australia's local management toed the head office line, giving public mystique on future plans in order to feign off competitors. It was very much an old boys' club, even when Shelley Roberts held the top post in Australia, but when the Civil Aviation Safety Authority lifted the grounding and for the first time delved into its causes, it became apparent the Australian division was under-resourced and safety paperwork organisation was as patchy as the old vinyl office furniture in the waiting room of what management affectionately referred to as their the tin shed headquarters. Tiger prided itself on walking and talking their low-cost status, but it neglected safety – and Mr Davis's role in that became apparent.
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