According to a recent development it has been revealed that Tiger Airways has planned a ‘rights issue’. This would be able to raise a sum of as much as US$150 million for the firm.

The firm as well as a number of other stakeholders in the firm, such as Singapore Airlines has both asked for trading halts. This is something they are doing before the release of the announcement they are to make.

Ng Kian Teck, investment analyst at SIAS Research added: "Tiger's debt level looks high; its net debt to shareholders' equity is about 2.8 times”.

The firms, both did not give out any statements in this regard. Analysts are of the view that Tiger might be of the hope of raising funds for the purpose of being able to buy more aircrafts. There was a net loss of S$20.6 million incurred by the firm in the first quarter. The reason for the same was expected to be the volcanic eruption in Australia as well as the hike in fuel prices.

The firm is of the view that it shall be benefitted in more than one ways with the help of this new proposal and that it shall avoid any further problems in its functioning.