Tiger Airways has shunned Sydney Airport in its initial expansion and handed back slots it had been allocated for the northern winter season.

Tiger Australia corporate affairs head Matthew Hobbs confirmed that Tiger had returned slots at Sydney for the end of October to March.

This did not mean the airline had no intention of flying to Sydney or NSW, he said.

"We will go NSW at some point but at the moment we've got to get our airline up and running," he said. "That's not one of the first sets of routes."

The Tiger decision came as Singapore Airlines made it clear the low-cost startup would be its main vehicle for entering the Australian domestic market and it was not interested in picking up Toll's stake in Virgin Blue.

Singapore Airlines chief executive Chew Choon Seng said he was confident Tiger could survive the competition from Jetstar-Qantas and Virgin Blue.

Mr Chew said he had thought for some time that Australia could not support three full-service airlines: "Tiger offers a different business model and the other two have moved sufficiently away from the market segment that Tiger is entering.

"Time will tell and I am confident that Tiger management will be able to prove the point."

There was little movement on any sale of Singapore Airlines' 49 per cent stake in Richard Branson's Virgin Atlantic.

"That is still under review," Mr Chew said.

"We have said publicly it has been an underperforming investment for us, and Richard has said he would be open to buying it back if the price is right.

"Well, that's a big if, getting the price right."