Singapore budget airline Tigerair has agreed to establish a joint-venture budget airline Tigerair Taiwan with Taiwan’s China Airlines.
Tigerair will own 10 percent of the shares while China Airlines will hold the other 90 percent for the new $85 million airline.
Tigerair Taiwan, which will be a standalone entity managed by a separate board and management team, will provide internatonal travel services in North-east Asia and will operate under the Tigerair brand.
It will also use Tigerair’s main website as its sales and distribution platform.
Koay Peng Yen, group chief executive officer of Tigerair said, “We are delighted to forge this partnership with China Airlines. The new joint-venture will allow us to extend our presence into the new untapped markets of Taiwan, Japan, and Korea. There is vast potential for growth in these markets and also areas of synergy to be explored between the two airlines. With an established partner in China Airlines, we are confident of building a strong and sustainable budget carrier.”
Added Sun Hung, chairman of China Airlines, “China Airlines’ knowledge of the Taiwan market coupled with Tigerair’s expertise in the no-frills sector should stimulate demand in the civil aviation market here. We look forward to ushering in a new era for the local aviation industry and creating Taiwan’s No. 1 budget carrier.”
Similarly, another Singapore budget airline Scoot will be establishing a joint-venture with its Thailand counterpart to provide more medium and long-haul flight services.
Photo: AFP
