Tigerair steps up turnaround plan

• Tigerair’s 2QFY15 one-off charges amount to S$161.1 million, resulting in
after tax loss of S$182.4 million
• One-off charges due to subleasing of surplus aircraft and exit from Tigerair
Australia
• Proposes up to S$234 million rights issue with SIA undertaking to subscribe
for up to S$140 million of rights shares
• SIA will convert its PCCS into ordinary shares, increasing its stake to
approximately 55% before the rights issue

Financial Results 2QFY15
Tiger Airways Holdings Limited (“Tigerair” or the “Group”) has reported an operating loss of
S$25.3 million for the quarter ended 30 September 2014 (“2QFY15”), compared to an
operating loss of S$12.8 million recorded in the previous corresponding quarter (“2QFY14”).

Total revenue declined by 10.5% to S$146.7 million in 2QFY15, while total expenses
decreased 2.6% to $172.0 million year-on-year. The contraction is mainly due to the weaker
operating performance of Tigerair Singapore.

Tigerair Singapore recorded an operating loss of S$31.3 million for the quarter compared to
S$18.1 million a year ago. Revenue decreased by 4.9% to S$143.9 million on the back of a
rationalisation of Tigerair Singapore’s network. The resulting improvement in load factor (4
percentage point), was nevertheless offset by lower yields (-10.4%). Expenses increased by
3.4% to $175.2 million on higher unit cost (3.1%).

The Group recorded loss after tax of S$182.4 million in 2QFY15, compared to profit after tax
of S$23.8 million a year ago. In total, the Group recorded one-off accounting provisions
aggregating S$161.1 million in 2QFY15, mainly comprising S$99.3 million relating to the
sublease of surplus aircraft and S$59.8 million for the divestment of Tigerair Australia.

The provision for sublease of surplus aircraft is higher than the S$93.0 million previously
announced in the IndiGo transaction, because it includes an additional provision of S$6.3
million for a further two to four aircraft that may potentially be subleased.

On 16 October 2014, the Group signed an agreement with Virgin Australia to sell its
remaining 40% stake in Tigerair Australia for AUD1. The branding and website distribution
arrangements continue and the Group will still obtain franchise revenues. Taking into
account impairment of shareholder loans and having made provisions for share of potential
losses from the disposal of Tigerair Australia’s future aircraft deliveries, the Group has
recorded a S$59.8 million charge in relation to this planned divestment.

Rights Issue
To strengthen the Group’s balance sheet, Tigerair plans to raise up to S$234 million in a
renounceable non-underwritten 85 for 100 rights issue (the “Rights Issue”). The issue will be
1.2 billion new ordinary shares (the “Rights Shares”) at an issue price of S$0.20 per Rights
Share, representing a 39% discount to the one-day volume weighted average price
(“VWAP”) of S$0.33 per Share on 16 October 2014.

Tigerair’s largest shareholder, Singapore Airlines Limited (“SIA”), has undertaken to
subscribe for its pro rata entitlement, and also subscribe for excess Rights Shares, up to a
total of S$140 million. Prior to the Rights Issue, SIA will convert its perpetual convertible
capital securities (“PCCS”) holdings into Shares. The conversion will raise SIA’s stake in
Tigerair from 40% to approximately 55% before the Rights Issue, effectively making Tigerair
a subsidiary of SIA. SIA will not be making a general offer as Tigerair’s minority
shareholders had approved a whitewash resolution in March 2013 to waive their rights to
receive a general offer as a result of the PCCS conversion.

The Rights Issue is subject to shareholders’ approval at an extraordinary general meeting on
a date to be announced. The Rights Issue is expected to be completed in January 2015.

Mr Lee Lik Hsin, Group CEO of Tigerair, said, “We resolved our excess capacity issues
through the sublease arrangements made for the surplus aircraft, and we also stemmed
further losses from our overseas venture.

“We are heartened by SIA’s support in this Rights Issue. We are already working closely
with Scoot, and look forward to further collaboration with the rest of the SIA Group.”