Thai Airways and Tiger to launch new airline

Bangkok: Thai Airways, Thailand’s flag carrier, is teaming up with Singapore’s budget carrier Tiger Airways to launch a low-cost airline to capitalise on the growing Asian leisure travel industry.
The new airline, Thai Tiger, will be based in Bangkok and focus on destinations within a five-hour flying radius, putting the growing tourist and intra-regional business markets of China, India and Indonesia firmly within its target area.
It is expected to start operations in the first quarter of next year. Thai Airways will take a 51 per cent stake, with the rest owned by Tiger.
Singapore Airlines owns a 49 per cent stake in Tiger.
The new airline will be taking off in a market already fairly crowded with regional low-cost carriers such as Malaysia’s highly successful AirAsia, and Jetstar, the aggressive low-cost operation of Australia’s Qantas Airways that has already invested heavily in Vietnam and is now challenging Singapore Airlines on its home turf.
The joint venture also adds to uncertainty over Nok Air, a domestic low-cost carrier 39 per cent owned by Thai Airways that has had a turbulent relationship with its parent.
02/08/10 Tim Johnston/Financial Times

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Categories: Foreign Aug 2010, Low Cost General Aug 2010, New Aug 2010