Tiger takes on bear market

Tiger Airways issued a press release today announcing that it is seeking $225 million to help fund aircraft and engine purchases.

This news itself was not that interesting. After all, airlines are always seeking to borrow money or do sale leaseback deals following aircraft acquisitions.

But what is interesting is that Tiger is actively working to publicise the fact and is going out of its way to woo financiers.

Gone are the days when airlines had financial institutions beating a path to their doors trying to get in on aircraft deals.

With the the US sub-prime crisis still taking its toll, financial institutions are continuing to announce write-downs and are out in the market trying to attract funding to prop up their own cash reserves.

If the financial institutions are out pounding the pavement with cap in hand to meet their own needs, its less likely that these same financial institutions will be in the mood to lend millions to others.

The fact that several airlines in the USA have gone into bankruptcy in recent weeks also doesn't whet their appetite for lending.

Lets hope Tiger can beat the bear market.