Tigerair to set up new Taiwan-based budget carrier with China Airlines

Tiger Airways Holdings' shares jumped 3 per cent on Monday, off an all-time low hit last week, encouraged by the company's plan to form a joint-venture budget carrier in Taiwan. -- ST FILE PHOTO: JOYCE FANG
Tiger Airways Holdings' shares jumped 3 per cent on Monday, off an all-time low hit last week, encouraged by the company's plan to form a joint-venture budget carrier in Taiwan. -- ST FILE PHOTO: JOYCE FANG

Budget carrier Tigerair has announced three new alliances with other airlines, in a move to expand its network.

The first is a joint-venture agreement with China Airlines to establish a Taiwan-based budget carrier, Tigerair Taiwan. Under the terms of the agreement, Tigerair will hold a 10 per cent stake in the new carrier, which will have a paid-up capital of NT$2 billion (S$85 million).

Tigerair has also entered into an interline agreement with Indian carrier SpiceJet to enable greater connectivity between flights operated by both carriers.

It will also expand on its alliance agreement with local budget carrier Scoot. It would allow the two airlines to build upon their existing interline cooperation, which currently enables passengers from outside Singapore to purchase itineraries involving the services of both airlines, for example Jakarta to Singapore (operated by Tigerair), and onward from Singapore to Tianjin (operated by Scoot).

In a statement Monday, Tigerair said these initiatives "form part of its strategy to accelerate business growth in the key Asian markets of North-east Asia, India, and Singapore without over- stretching its resources". Group chief executive of Tigerair Koay Peng Yen said: "We are excited to move forward with our alliance strategy, in line with our focus to grow our footprint in Asia. The partnerships unveiled today will help us to expand our network, attain greater cost-savings, and build a stronger brand presence in the region."