Tigerair to come under Scoot brand next year

Mr Lee Lik Hsin (middle), chief executive of Budget Aviation Holdings which operates Scoot and Tigerair, with cabin crew at the company's office on Aug 16.
Mr Lee Lik Hsin (middle), chief executive of Budget Aviation Holdings which operates Scoot and Tigerair, with cabin crew at the company's office on Aug 16. ST PHOTO: MARCUS TAN

SINGAPORE - Tigerair will come under the name of its budget carrier sibling, Scoot, by the end of next year, the two airlines announced on Friday (Nov 4).

Scoot and Tigerair intend to pursue a single brand and operating licence next year, said Budget Aviation Holdings Pte Ltd, which owns and manages Singapore Airlines' low-frills carriers.

The integration is expected to be realised between mid- and end-2017, given the full spectrum of commercial, operational and regulatory considerations, said the statement.

The integration will mean Tigerair and Scoot will have merged flight scheduling and connections, as well as a common website, contact centre and check-in counters.

Said SIA CEO and Budget Aviation Holdings chairman Goh Choon Phong: "Scoot and Tigerair have made good progress in their integration since the establishment of Budget Aviation Holdings as a common holding company in May.

""The integration has already led to commercial and operational synergies between Scoot and Tigerair that are providing growth opportunities for both airlines, an example being Scoot's plan to launch its first European service, to Athens, next year.

"Following a review, we have determined that the logical next step is to pursue a common operating licence and common brand identity to enable a more seamless travel experience for customers."

SIA completed its buyout of Tigerair earlier this year, taking it private as part of a larger plan to drive deeper cooperation and synergies between the group's different carriers in the face of mounting competition.

Tigerair has focused on regional low-cost flights with Scoot operating medium- and long-haul budget flights.

Analysts have said that in a merger between the two carriers, it would make sense to drop the Tigerair brand, which has been less successful than Scoot.

They also said that in a full merger, airlines may have to grapple with getting air traffic rights granted by foreign regulators transferred from one airline to another.