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www.dbsvickers.com

Refer to important disclosures at the end of this reported: MY / sa: JC

HOLD S$2.24 STI : 3,006.76Downgrade from BUY

Price Target : 12-Month S$ 2.00 (Prev S$ 2.25)Reason for Report : Lower than expected earnings, launch of new hubPotential Catalyst: Steady earnings execution over subsequent quartersAnalystSuvro Sarkar +65 6398 7973suvro@dbsvickers.com

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R e l a t i v e I n d e x

T ig e r A i rw a y s H o ld in g s Lim i te d (L H S) R e la t i ve S T I I N D EX ( RH S )

Forecasts and ValuationFY Mar (S$ m) 2009A 2010A 2011F 2012FTurnover 378 486 655 853EBITDA (48) 29 91 153Pre-tax Profit (48) 20 71 112Net Profit (51) 28 67 87Net Pft (Pre Ex.) (51) 37 67 87EPS (S cts) (13.9) 7.2 12.6 16.4EPS Pre Ex. (S cts) (13.9) 9.3 12.6 16.4EPS Gth Pre Ex (%) (664) (167) 36 30Diluted EPS (S cts) (13.9) 7.2 12.2 15.9Net DPS (S cts) 0.0 0.0 0.0 0.0BV Per Share (S cts) (30.0) 28.2 40.8 57.2PE (X) nm 31.2 17.8 13.6

PE Pre Ex. (X) nm 24.1 17.8 13.6P/Cash Flow (X) nm 30.6 15.6 9.8EV/EBITDA (X) nm 30.8 15.6 10.2Net Div Yield (%) 0.0 0.0 0.0 0.0P/Book Value (X) nm 7.9 5.5 3.9Net Debt/Equity (X) CASH 0.0 1.1 1.2ROAE (%) 68.5 140.6 36.5 33.5

Earnings Rev (%): (15.0) (11.0)Consensus EPS (S cts): 14.7 18.6ICB Industry :Consumer ServicesICB Sector: Travel & LeisurePrincipal Business: Leading low cost carrier airline in Singapore andAustralia

Source of all data: Company, DBS Vickers, Bloomberg

At A GlanceIssued Capital (m shrs) 535Mkt. Cap (S$m/US$m) 1,198 / 885Major Shareholders

Singapore Airlines (%) 33.5Indigo Singapore Partners (%) 14.6Ryanasia Ltd (%) 10.9

Free Float (%) 33.5

Avg. Daily Vol.(000) 1,742

DBS Group Research . Equity 6 Aug 2010

Singapore Company Focus

Tiger Airways Holdings LimitedBloomberg: TGR SP | Reuters: TAHL.SI

A muted quarter 1Q11 net profit falls short of our expectations, but

Y-o-Y improvement in profitability still on track

We reduce FY11 EPS by 15% to account for thelower-than expected 1Q, and FY12 EPS by 11% fothe startup losses from Thai associate next year

Downgrade to HOLD; TP revised down to S$2.00

Switch to SIA (BUY, TP S$18.62) for sustainable

earnings recovery and higher potential upsideSeasonal dip in profits. In what is traditionally the weakest

quarter of the year, Tiger Airways reported a net profit of

S$1.9m, and even after stripping out a forex loss of S$6.3m -

the core net profit of S$8.2m fell short of our expectations.

The seasonal dip is due to lower fares in the weak winter travel

season in Australia, and possibly lower loads in Thailand in

May-June. At the operating profit level though, Tiger recorded

an improvement of S$20m (adjusted for forex), which augurs

well for profitability in subsequent quarters.

Costs continue to be well controlled. Average ticket prices

were up 4% on a y-o-y basis to S$97, but lower than the

S$104 recorded last quarter owing to seasonality. Cost perASK (ex-fuel/ ex- forex) increased about 6% y-o-y owing to the

shorter stage lengths in Australia but on a q-o-q basis, it was

down 4%, owing to the lower cost of owning planes vs.

leasing. Total cost per seat (excluding forex) was S$77, in line

with our full year forecast of S$76.

Earnings revised downwards, stock should take a

breather after recent rally. On the new Thai venture, we do

not foresee too much impact on FY11 numbers but FY12

should see start-up losses from the Thai Tiger associate. Thai

Tiger's fleet will be derived from Tiger Airways' existing A320

orderbook. Taking into account the forex losses and lower

average ticket prices in 1Q, and the expected losses from Thaiassociate in FY12, we reduce our FY11 and FY12 EPS estimates

by 15% and 11%, respectively. Our TP is likewise reduced to

S$2.00. Downgrade to HOLD. Recommend switch to SIA (BUY,

TP S$18.62 for hi her u side and chea er valuations.

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Company Focus

Tiger Airways Holdings Limited

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Results Summary 1Q11 vs. 1Q10FYE Mar (S$ m) 1Q10 1Q11 Y-o-Y ChgPassenger seat revenue 80.1 116.2 45%Ancillary revenue 20.0 28.9 45%Total revenue 100.1 145.1 45%Expenditure 106.2 144.3 36%Staff costs 13.1 17.8 36%Depreciation 0.0 1.0Fuel

Actual 32.3 56.4 75%Hedging losses (gains) 14.4 (0.3) -102%

Maintenance, material & repair 13.8 16.3 18%Marketing & distribution costs 1.5 1.8 20%Aircraft rental 17.8 16.5 -7%

Route charges 7.1 8.5 20%Airport and handling 10.2 15.6 53%Others (4.0) 10.7 nmOperating Profit (Loss) (6.1) 0.8 nmIPO expenses 0.0 0.0Finance income, net 0.0 0.5Associates 0.0 0.0PBT (6.1) 1.3 nmTaxation 0.1 0.6 nmPAT (6.0) 1.9 nm

Source: Company, DBS Vickers

Key Operating Data 1Q11 vs. 1Q10FYE Mar (S$ m) 1Q10 1Q11 Y-o-Y ChgASK 1,943 2,263 16%RPK 1,641 1,932 18%

Seat capacity (000s) 1,302.8 1,782.7 37%Passengers booked (000s) 1,080.0 1,501.0 39%Passenger Load Factor (%) 82.9% 84.2%

Avg Ticket Price (S$) 92.7 96.7 4%

Revenue per ASK (Scts) 5.15 6.41 24%

CASK - excluding fuel (Scts) 3.06 3.90 27%CASK ex fuel, ex forex (Scts) 3.42 3.62 6%Fuel cost per ASK (Scts) 2.40 2.48 3%

Total cost per ASK (Scts) 5.47 6.38 17%

Source: Company, DBS Vickers

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Income Statement (S$ m) Balance Sheet (S$ m)FY Mar 2009A 2010A 2011F 2012F FY Mar 2009A 2010A 2011F 2012FTurnover 378 486 655 853 Net Fixed Assets 125 320 645 953Cost of Goods Sold (426) (458) (574) (717) Invts in Associates & JVs 0 0 4 5Gross Profit (48) 28 81 137 Other LT Assets 23 33 33 33Other Opng (Exp)/Inc 0 0 0 0 Cash & ST Invts 19 211 131 137Operating Profit (48) 28 81 137 Inventory 19 20 32 42Other Non Opg (Exp)/Inc 0 0 0 0 Debtors 1 2 2 3Associates & JV Inc (1) 0 0 (9) Other Current Assets 0 2 2 2Net Interest (Exp)/Inc 0 0 (10) (16) Total Assets 187 587 849 1,175Exceptional Gain/(Loss) 0 (8) 0 0Pre-tax Profit (48) 20 71 112 ST Debt 101 110 110 110Tax (3) 8 (4) (25) Other Current Liab 165 196 242 331Minority Interest 0 0 0 0 LT Debt 0 102 250 400Preference Dividend 0 0 0 0 Other LT Liabilities 30 30 30 30Net Profit (51) 28 67 87 Shareholders Equity (110) 150 217 304Net Profit before Except. (51) 37 67 87 Minority Interests 0 0 0 0EBITDA (48) 29 91 153 Total Cap. & Liab. 187 587 849 1,175Sales Gth (%) 24.4 28.6 34.7 30.3 Non-Cash Wkg. Capital (145) (173) (207) (285)EBITDA Gth (%) 23,900.0 (159.6) 216.8 69.4 Net Cash/(Debt) (82) 0 (228) (372)Opg Profit Gth (%) (710.3) (158.8) 190.3 68.0Net Profit Gth (%) (664.4) (155.5) 137.3 30.1

Effective Tax Rate (%) N/A N/A 5.9 22.0Cash Flow Statement (S$ m) Rates & RatioFY Mar 2009A 2010A 2011F 2012F FY Mar 2009A 2010A 2011F 2012FPre-Tax Profit (48) 20 71 112 Gross Margins (%) (12.6) 5.8 12.4 16.0Dep. & Amort. 0 1 9 26 Opg Profit Margin (%) (12.6) 5.8 12.4 16.0Tax Paid 0 0 (2) (4) Net Profit Margin (%) (13.4) 5.8 10.2 10.2Assoc. & JV Inc/(loss) 1 0 0 9 ROAE (%) 68.5 140.6 36.5 33.5Chg in Wkg.Cap. 8 43 31 58 ROA (%) (29.4) 7.3 9.3 8.6Other Operating CF 0 (14) 0 0 ROCE (%) (176.0) 13.6 15.3 14.7Net Operating CF (40) 49 110 200 Div Pa out Ratio % N/A 0.0 0.0 0.0Ca ital Ex . net 38 196 334 334 Net Interest Cover x NM NM 8.0 8.5Other Invts.(net) 0 0 0 0 Asset Turnover (x) 2.2 1.3 0.9 0.8Invts in Assoc. & JV 0 0 (4) (10) Debtors Turn (avg days) 1.4 1.1 1.0 1.1Div from Assoc & JV 0 0 0 0 Creditors Turn (avg days) 55.7 72.3 76.0 77.1Other Investing CF 0 0 0 0 Inventory Turn (avg days) 14.5 15.2 16.7 19.5Net Investing CF (38) (196) (338) (344) Current Ratio (x) 0.1 0.8 0.5 0.4Div Paid 0 0 0 0 Quick Ratio (x) 0.1 0.7 0.4 0.3Chg in Gross Debt 58 115 148 150 Net Debt/Equity (X) CASH 0.0 1.1 1.2Capital Issues 0 225 0 0 Net Debt/Equity ex MI (X) (0.7) 0.0 1.1 1.2Other Financing CF 0 0 0 1 Capex to Debt (%) 37.8 92.8 92.9 65.5Net Financing CF 58 340 148 150 Z-Score (X) NA NA NA NANet Cashflow 20 193 80 6 N. Cash/ Debt PS S cts 22.4 0.0 43.1 70.2

Opg CFPS (S cts) (12.9) 1.7 14.8 26.8Free CFPS (S cts) (21.3) (37.4) (42.3) (25.2)Quarterly / Interim Income Statement (S$ m) Segmental Breakdown / Key Assumptions

FY Mar 1H2009 2H2009 1H2010 2H2010 FY Mar 2009A 2010A 2011F 2012FTurnover 183 195 206 280 Revenues (S$ m)Cost of Goods Sold (208) (218) (215) (243) Passenger Revenue 328 392 507 634Gross Profit (25) (23) (9) 37 Ancillar Revenue 50 94 148 209Other Oper. (Exp)/Inc 0 0 0 0Operating Profit (25) (23) (9) 37Other Non Opg (Exp)/Inc 0 0 0 0Associates & JV Inc 0 (1) 0 0Net Interest (Exp)/Inc 1 0 0 0 Key AssumptionsExceptional Gain/(Loss) 0 0 (1) (8) No of Aircraft (YE) 16.0 19.0 26.0 28.0Pre-tax Profit (24) (24) (9) 29 No of Aircraft av 13.0 17.0 21.3 26.7Tax (1) (2) 1 7 Sectors flown 22,229.0 31,450.0 41,600.0 52,000.0Minority Interest 0 0 0 0 Avg sector length (km) 1,614.0 1,371.0 1,300.0 1,300.0Net Profit (25) (26) (8) 36 Sectors er av aircraft 1,709.9 1,850.0 1,950.0 1,950.0Net profit bef Except. (25) (26) (8) 44EBITDA (24) (24) (9) 38

Sales Gth (%) N/A 6.3 5.9 35.9 EBITDA Gth (%) N/A (3.7) (61.3) NM Opg Profit Gth (%) N/A (6.1) (60.3) NM Net Profit Gth (%) N/A 1.6 (67.6) NMGross Margins (%) (13.4) (11.8) (4.4) 13.2 Opg Margins (%) (13.4) (11.8) (4.4) 13.2 Net Profit Margins (%) (13.8) (13.2) (4.0) 13.0

Source: Company, DBS Vickers

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DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:

STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)BUY (>15% total return over the next 12 months for small caps, >10% for large caps)HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)FULLY VALUED (negative total return i.e. > -10% over the next 12 months)SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)Share price appreciation + dividends

DBS Vickers Research is available on the following electronic platforms: DBS Vickers (www.dbsvresearch.com); Thomson(www.thomson.com/financial); Factset (www.factset.com); Reuters (www.rbr.reuters.com); Capital IQ (www.capitaliq.com) and Bloomberg(DBSR GO). For access, please contact your DBSV salesperson.

GENERAL DISCLOSURE/DISCLAIMERThis document is published by DBS Vickers Research (Singapore) Pte Ltd ("DBSVR"), a direct wholly-owned subsidiary of DBS VickersSecurities (Singapore) Pte Ltd ("DBSVS") and an indirect wholly-owned subsidiary of DBS Vickers Securities Holdings Pte Ltd ("DBSVH").

[This report is intended for clients of DBSV Group only and no part of this document may be (i) copied, photocopied or duplicated in anyform by any means or (ii) redistributed without the prior written consent of DBSVR.]

The research is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty asto its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared forgeneral circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financialsituation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be takenin substitution for the exercise of judgement by addressees, who should obtain separate legal or financial advice. DBSVR accepts no liabilitywhatsoever for any direct or consequential loss arising from any use of this document or further communication given in relation to thisdocument. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. DBSVH is a wholly-owned subsidiary of DBS Bank Ltd. DBS Bank Ltd along with its affiliates and/or persons associated with any of them may from time totime have interests in the securities mentioned in this document. DBSVR, DBSVS, DBS Bank Ltd and their associates, their directors, and/oremployees may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to performbroking, investment banking and other banking services for these companies.

The assumptions for commodities in this report are for the purpose of forecasting earnings of the companies mentioned herein. They are

not to be construed as recommendations to trade in the physical commodities or in futures contracts relating to the commoditiesmentioned in this report.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transactionas a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarificationon disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

ANALYST CERTIFICATIONThe research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about thecompanies and their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part ofhis/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of6 Aug 2010, the analyst and his / her spouse and/or relatives who are financially dependent on the analyst, do not hold interests in thesecurities recommended in this report (interest includes direct or indirect ownership of securities, directorships and trustee positions).

COMPANY-SPECIFIC / REGULATORY DISCLOSURES1. DBS Vickers Securities (Singapore) Pte Ltd and its subsidiaries do not have a proprietary position in the mentioned

company as of 5 Aug 2010

2. DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBS Vickers Securities (USA) Inc ("DBSVUSA"), a U.S.-registeredbroker-dealer, may beneficially own a total of 1% or more of any class of common equity securities of the mentionedcompany as of 6 Aug 2010.

3. Compensation for investment banking services:i. DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA received compensation, within the past 12 months,

and within the next 3 months may receive or intends to seek compensation for investment banking services from SIAand Tiger Airways.

ii. DBSVUSA does not have its own investment banking or research department, nor has it participated in anyinvestment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing toobtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction inany security discussed in this document should contact DBSVUSA exclusively.

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