Tiger Airways Holdings is to replace its CEO with an executive from its largest shareholder, Singapore Airlines, days after it reported significant losses, the company said Wednesday.
Lee Lik Hsin, who has represented Singapore Airlines as a member of the Tigerair board, will take over from Koay Peng Yen on 12 May, less than two years after Koay joined Tiger.
The budget carrier reported a loss of 95.5 million Singapore dollars(75.5 million US dollars) in the January-to-March period, prompting it to take cost-cutting measures to stay afloat in the highly competitive Asia-Pacific region.
"Tigerair Singapore, which had been growing at the rate of 30 percent in the past 3 years, hit turbulence when the market sagged inmid-2013 through the imbalance of capacity and demand," the airline said in a statement.
Tigerair flies to more than 50 destinations in the Asia-Pacific region, a part of the world where the demand for budget travel is high but competition is tough.
Around 50 low-cost carriers (LCCs) operate in the region, and operators are looking to expand. Malaysian-based AirAsia announced three new domestic routes in Malaysia at the beginning of the year, while Thai budget airline Nok Air put in an order for 15 new planes from Boeing in February.
"Asia-Pacific has the bigger overall aviation market, a much higher growth rate and economic conditions that are particularly favourable for LCCs," the Centre for Aviation said in a January analysis.