The Singapore Airlines-backed Tiger Airways has revealed that its Australian subsidiary lost US$79.3 million ($111.6 million) within its first two years, outstripping the losses its Singaporean parent has accumulated in its first six years of operation, reported the Sydney Morning Herald.

The low-cost airline’s release of the preliminary prospectus for its planned listing on the Singapore Exchange shows the airline has hemmed in the losses it suffered last financial year, thanks largely to the fall in fuel costs.

Tiger, which began domestic services in Australia late in 2007, posted a $8.3 million loss in the six months to September 30 for all its operations. This compares well with the $50.8 million loss in the year to March 31, which included a US$50.1 million loss from Australia.

But Tiger remained optimistic in its prospectus, saying it was ‘’well positioned to increase market share in Australia as a result of [its] lower cost base and attractive fares’’.

Going by its previous stated losses and the accumulated US$79.3 million in losses reported in the prospectus, the airline in Australia reported a US$17.1 million loss in the six months to September 30.

Tiger said its Singapore operations had lost US$S77 million. It said there was no assurance the losses could help offset its future tax bills once it was listed.

Under the planned initial public offering, Singapore Airlines has signalled its intention to maintain its 49% stake while Indigo Partners, headed by Bill Franke, and Ireland’s Ryan family signalled their intention to sell down their holdings.

The Singapore Government’s investment fund Temasek will also maintain its stake. Despite being helped by the fall in fuel costs, Tiger’s seat revenues were flat in the six months to September 30, largely because of heavy discounting, in which Tiger’s average fares fell from $110.60 to $74.30 over the year.

The prospectus did not say how much Tiger wanted to raise from the IPO. But some media reports say it is expected to gain as much as $250 million, which will be used to pay off its $100 million in short-term bank debts and fund expansion in the Asia-Pacific.

Tiger plans to increase its fleet from 17 to 68 Airbus A320s by late 2015. It revealed it had amended the service agreement of its chief executive, Tony Davis. He will now have a fixed salary of $600,000 and a bonus of up to half his base salary each year. He will also have a 2% stake in Tiger when it is listed.

The airline paid $5.1 million in pre-IPO ‘’cash award arrangements’’ for senior staff.