Published on : Monday, December 16, 2013
Tigerair is set to extend its footprint in North-east Asia through the signing of a joint-venture agreement with China Airlines to establish Tigerair Taiwan, a Taiwan-based budget carrier.
Under the terms of the agreement, Tigerair will hold a 10% stake in the new carrier, which will have a paid-up capital of NTD two billion (approximately SGD85 million).
The new budget airline will operate under the Tigerair brand, and as a no-frills carrier
providing international air travel services in North-east Asia. It will utilise Tigerair’s website as its main sales and distribution platform. It will be managed as a standalone entity, with a separate Board and Management team.
Group CEO of Tigerair Mr Koay Peng Yen said, “We are delighted to forge this partnership with China Airlines. The new JV 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.”
Sun Hung-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 in Taiwan’s civil aviation market, 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 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.
Tigerair Group currently operates a fleet of 50 aircraft to over 50 destinations, from its bases in Singapore, Indonesia, the Philippines, and Australia. China Airlines currently operates a fleet of 75 aircraft to 109 domestic and international destinations in its network.
Tigerair and China Airlines will be submitting applications for regulatory approvals from Taiwan’s Ministry of Economic Affairs and Civil Aeronautics Administration.
Source:- Tiger Air
Tags: Airline News
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