Tigerair (Singapore), 33 percent owned by Singapore Airlines (Singapore), has joined forces with China Airlines (Taipei) to form a new low-fare joint venture called Tigerair Taiwan (Taipei). The new JV will operate under the Tigerair brand. China Airlines will control 90 percent of the stock and Tigerair the remaining 10 percent. The new airline will commence operations in 2014 with two Airbus A320s and is planning to operate 12 aircraft by 2017.
China Airlines issued this statement:
|China Airlines announced on December 16 its formal entry into the Budget Carrier/Low Cost Carrier (LCC) market. China Airlines and Tigerair, the largest budget carrier in Singapore, have entered into a joint venture to set up Tigerair Taiwan. The new LCC is expected to commence operations at the end of 2014 and provide passengers with another air travel option. Travelers flying with the LCC will not only enjoy low prices but can also purchase tickets and make reservations online. Travelers can also enjoy the value-added services they need such as check-in luggage and in-flight meals.Sun Huang-hsiang, the chairman of China Airlines, said ”Today is the 54th birthday of China Airlines and the start of our 55th year. As the leader of the civil aviation market in Taiwan, China Airlines will enter the LCC market by investing in a joint venture with Tigerair to set up Tigerair Taiwan. China Airlines’ knowledge of the Taiwan market as well as Tigerair’s LCC DNA should stimulate demand in the civil aviation market here, usher in a new era for the local aviation industry, and create Taiwan’s first LCC.”
Tigerair, established in 2004, is a part of the Singapore Airlines Group and is the leader of the LCC industry in Singapore. Koay Peng-Yen, the CEO of Tigerair, said “The agreement will help us enter new markets in Taiwan, Japan and Korea. The combination of China Airlines’ familiarity with these markets and our experience in the LCC industry makes us even more confident of establishing a competitive LCC that will continue to grow.”
The partnership between China Airlines and Tigerair will not only offer tangible returns on investment but also produce intangible benefits through the sharing of experience. The essence of LCC operations can be mastered and its strengths injected into China Airlines to boost group synergies.
On December 15, the agreement on the joint venture was signed by China Airlines and Tigerair. Tigerair Taiwan will be based in Taiwan and preparations for the formation of the new airline will immediately get underway in accordance with the regulations of the Civil Aeronautics Administration (CAA). Tigerair Taiwan will have a capitalization of NTD 2 billion with China Airlines Group holding a 90% stake and Tigerair 10%. The network will cover major destinations in Northeast and Southeast Asia, Hong Kong, Macau, China and Taiwan.
Tigerair also signed a new interline agreement with SpiceJet (Delhi).
Top Copyright Photo: Manuel Negrerie/AirlinersGallery.com (all others by China Airlines). The Taiwan portion of the name is not likely to be displayed on the aircraft, only B- registrations.
Route Map: Tigerair-branded current route map: