Thai Airways and Singapore's Tiger to form budget carrier

Singapore's budget carrier Tiger Airways and Thai Airways announced Monday plans for a low-cost airline expected to start operations next year, potentially hastening a shake-up in the region.

Thai Tiger Airways will fly domestic and international flights from Suvarnabhumi International Airport in Bangkok, starting in the first quarter of 2011, the two companies said.

Thai Airways and another Thai entity will hold 51 percent in the airline, with the remaining 49 percent under Tiger Airways.

Tiger Airways group chief executive Tony Davis said the new budget carrier's paid-up capital was around six million US dollars and details of the aircraft fleet would be announced once the operations plan has been finalised.

He said the joint venture would further spur the Singapore-based budget carrier's ambitions in the increasingly competitive Asian low-cost airline segment.

Around 45 low-fare airlines operate in the region, from Japan to Pakistan.

Many weathered the 2008-2009 global recession better than premium airlines, according to analysts.

In January, Jetstar, a no-frills affiliate of Australia's Qantas, picked Singapore as its Asian hub for both short- and long-haul flights.

Malaysia's AirAsia, Southeast Asia's leading budget carrier, has also been expanding. In April, it inked a deal to launch a low-cost carrier in Vietnam called VietJet AirAsia, making Vietnam its fourth country base after Malaysia, Thailand and Indonesia.

Davis, the Tiger Airways CEO, said the alliance with Thai Airways would boost his company's Asian presence.

"We have always said that it was the strategic objective of Tiger Airways to become a pan-regional Asian carrier," Davis said in a media conference call.

"The key thing we are seeing at the moment is that demand for air travel is returning in a very robust way."

Thai Airways said the venture would also allow it to beef up its presence in the budget travel market.

"We believe that this move will provide revenue opportunities for Thai (Airways) and allow Thai to be more competitive in the region with the anticipated growth in the low cost market," said Thai Airways president Piyasvasti Amranand.

Analysts from the Centre for Asia Pacific Aviation (CAPA) said the new budget carrier could potentially hasten a shake-up for the industry in the region, where some markets are still inhibited by entry barriers.

"The new joint venture... raises the bar in low cost airline operations competition in Asia and could have a major impact on the pace of airline liberalisation in the region," Sydney-based CAPA said in a commentary.

"There will be many more moves in this regional tapestry of low cost airline competition before the end game, but Tiger's announcement today should not be underestimated in scope."

Tiger Airways, partly owned by national carrier Singapore Airlines, flies to 37 destinations in 11 countries and has a fleet of 19 Airbus A320s, with plans to expand to 68 planes by December 2015.

Besides plying routes in Asia including to popular holidays spots such as Phuket, Tiger Airways has also expanded into Australia, where it offers domestic flights.

Publicly listed Tiger earned a net profit of 28.2 million Singapore dollars (20.85 US million) in the year ended March, a sharp turnaround from losses of 50.8 million dollars the previous fiscal period.

bh/mba/njc

 

The Independent travel offers: Discover a world of inspiring destinations

Sport
Alexis Sanchez has completed a £35m move to Arsenal, the club have confirmed
sportGunners complete £35m signing of Barcelona forward
Voices
Poor teachers should be fearful of not getting pay rises or losing their job if they fail to perform, Steve Fairclough, headteacher of Abbotsholme School, suggested
voicesChris Sloggett explains why it has become an impossible career path
Sport
world cup 2014
Sport
Ray Whelan was arrested earlier this week
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
In a minor key: Keira Knightley in the lightweight 'Begin Again'
film
Arts and Entertainment
Celebrated children’s author Allan Ahlberg, best known for Each Peach Pear Plum
books
News
peopleIndian actress known as the 'Grand Old Lady of Bollywood' was 102
News
Wayne’s estate faces a claim for alleged copyright breaches
newsJohn Wayne's heirs duke it out with university over use of the late film star's nickname
Life and Style
It beggars belief: the homeless and hungry are weary, tortured, ghosts of people – with bodies contorted by imperceptible pain
lifeRough sleepers exist in every city. Hear the stories of those whose luck has run out
News
Mick Jagger performing at Glastonbury
people
Life and Style
fashionJ Crew introduces triple zero size to meet the Asia market demand
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Sport
Santi Cazorla, Mikel Arteta and Mathieu Flamini of Arsenal launch the new Puma Arsenal kits at the Puma Store on Carnaby Street
sportMassive deal worth £150m over the next five years
Arts and Entertainment
Welsh opera singer Katherine Jenkins
musicHolyrood MPs 'staggered' at lack of Scottish artists performing
Life and Style
beautyBelgian fan lands L'Oreal campaign after being spotted at World Cup
Arts and Entertainment
Currently there is nothing to prevent all-male or all-female couples from competing against mixed sex partners at any of the country’s ballroom dancing events
Potential ban on same-sex partners in ballroom dancing competitions amounts to 'illegal discrimination'
News
business
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    Sales Manager (Fashion and Jewellery), Paddington, London

    £45-£55k OTE £75k : Charter Selection: Major London International Fashion and ...

    Volunteer Digital Marketing Trustee needed

    Voluntary, reasonable expenses reimbursed: Reach Volunteering: Are you keen on...

    Java Swing Developer - Hounslow - £33K to £45K

    £33000 - £45000 per annum + 8% Bonus, pension: Deerfoot IT Resources Limited: ...

    Corporate Events Sales Manager, Marlow,Buckinghamshire

    £30K- £40K pa + Commision £10K + Benefits: Charter Selection: Rapidly expandin...

    Day In a Page

    A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

    A History of the First World War in 100 Moments

    Peace without magnanimity - the summit in a railway siding that ended the fighting
    Scottish independence: How the Commonwealth Games could swing the vote

    Scottish independence: How the Commonwealth Games could swing the vote

    In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
    Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

    A writer spends a night on the streets

    Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
    Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

    UK's railways are entering a new golden age

    New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
    Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

    Conchita becomes a 'bride' on Paris catwalk

    Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
    Pétanque World Championship in Marseilles hit by

    Pétanque 'world cup' hit by death threats

    This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
    Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

    Why did we stop eating whelks?

    Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
    10 best women's sunglasses

    In the shade: 10 best women's sunglasses

    From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
    Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

    World Cup final: Messi? Mascherano is key for Argentina...

    No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
    Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

    Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

    18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
    The true Gaza back-story that the Israelis aren’t telling this week

    The true Gaza back-story that the Israelis aren’t telling this week

    A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
    A History of the First World War in 100 Moments: The German people demand an end to the fighting

    A History of the First World War in 100 Moments

    The German people demand an end to the fighting
    New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

    New play reveals what Oscar Wilde said at trials

    For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
    Can scientists save the world's sea life from

    Can scientists save our sea life?

    By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
    Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

    Richard III review

    Martin Freeman’s psychotic monarch is big on mockery but wanting in malice