Citilink terminate the Acquisition Related Discussion Tigerair Mandala

The low-cost airline Citilink Indonesia, a subsidiary of Garuda Indonesia, has ended talks to acquire competitors, Tigerair Mandala, said two sources familiar with the discussions.Tiger Airways Holdings of Singapore plans to sell 35.8 per cent stake in Mandala Tigerair, along with cuts in its investment plans abroad because they want to focus in order to develop the Tigerair return a profit. Through Mandala, Tiger Airways Holdings compete with other low-cost airlines such as Indonesia AirAsia, Lion Air and Citilink."Citilink, Mandala has seen over the past few weeks and decided that the deal would not make sense. Getting Mandala will not improve network Citilink flights or provide a disruption to the current market leader, Lion Air, "said one source."We will continue to explore the possibilities associated with our investment in Tigerair Mandala, and will make the appropriate announcement if there is already a significant development," said Tiger Airways in a statement reported by Reuters on Thursday, June 12, 2014. Tiger Airways when it is not pertaining to the potential acquisition by Citilink.Tiger Airways is reviewing its investment in Mandala Tigerair after in May reported a loss of U.S. $ 76.25 million for the quarter ended in March. The airline has suffered losses for three consecutive years.Tiger Airways has reduced the massive operation in Indonesia, so that now only serve Tigerair Mandala flight with four Airbus A320 aircraft, down from the previous sum of nine aircraft. On June 11, Tigerair Mandala said that the number of passengers decreased by 31.5 percent in May and capacity also shrank by 30.8 percent.