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Thai, Tiger Airways Plan Low-Cost Carrier to Clinch Asian Market
August 03, 2010

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Singapore. Thai Airways and Tiger Airways will launch a low-cost airline hopefully by next year, they announced on Monday, potentially hastening a shake-up in the region.

Thai Tiger Airways will operate domestic and international flights from Suvarnabhumi International Airport in Bangkok, starting in the first quarter of 2011, they said in a statement. The carrier will offer domestic services and international flights within a five-hour radius of the Thai capital.

That puts it in range of travel hot spots like Bali and busy regional centers in Vietnam, Cambodia, Singapore, Malaysia and Hong Kong.

Thai Airways and another Thai entity will have a 51 percent stake in the airline and Tiger Airways, Singapore’s budget carrier, will hold a 49 percent stake.

“We believe that this move will provide revenue opportunities for Thai Airways and allow it to be more competitive in the region,” said Thai Airways’ president, Piyasvasti Amranand.

He said Thai Airways, the national flag carrier, had teamed up with Tiger because of its “disciplined approach to the low-cost model.” Piyasvati said this would help the new carrier compete in the Asian market, which is expected to see a rise in demand for budget travel options.

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.

Asian low-cost carriers have expanded rapidly over the past decade and account for about 14 percent of travel within the region, according to estimates by European plane maker Airbus.


AFP, Reuters