SINGAPORE low-cost carrier Tiger Airways has shelved plans to set up a joint-venture airline in Korea.

Citing a weak global economic situation and 'continued regulatory uncertainty in Korea' Tiger said on Tuesday that it will not start Incheon Tiger Airways.

The project was to have been a tie-up with Incheon Metropolitan City.

Tiger's announcement comes more than a year after both sides started talks.

From the start, low-cost carriers in Korea jittery about the impending competition, had protested the proposed partnership.

In August, Air Busan, Yeongnam Air, Jeju Air and Jin Air filed a complaint with their country's Ministry of Land, Transport and Maritime Affairs.

They urged the government to put the brakes on the launch of the new carrier which was to have been 49 per cent owned by Tiger, with the majority stake held by Incheon and its affiliates.

In their protest, the airlines said the new carrier would in effect be controlled and run by Tiger, since the other shareholders had no airline experience.

Tiger's chief executive Tony Davis today: 'We are clearly disappointed that we will cease preparations for the establishment of Incheon Tiger Airways'.

The airline which is headquartered in Singapore also operates a domestic carrier in Australia.