THAI and Tiger Airways form low-cost carrier

2 Aug 2010

THAI Airways and Tiger Airways are forming a new low-cost carrier – Thai Tiger. Thai Airways will own 51 percent of the new airline, while Tiger Airways will hold 49 percent.

Thai Tiger plans to start up domestic and international services in January 2011, pending regulatory approvals, but has yet to announce its routes. It will fly out of Suvarnabhumi International Airport, offering short-haul, point-to-point services within a five-hour flying radius. Airbus A320s will be used on the flights.

Although based in Bangkok, Thai Tiger will not operate routes that may overlap with those provided by THAI.

Key officials of both airlines lauded the joint venture. Piyasvasti Amranand, THAI president, said: “We believe that this move will provide revenue opportunities for THAI and allow THAI to be more competitive in the region with the anticipated growth in the low cost market”.

Tony Davis, Tiger Airways group president, said that from Thailand, the new airline would be well positioned “to offer low fares to even more parts of the Asia-Pacific region” including destinations in North Asia and the Indian sub continent. “Spreading our paw-print means greater economies of scale for Tiger Airways, which in turn enables us to lower costs and fares even further.”

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Alisha Haridasani

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