Thai Airways International and Tiger Airways Holdings today announced the signing of a Memorandum of Understanding to form a new low fare airline called Thai Tiger Airways Private Ltd, which is expected to commence operations in the first quarter of 2011, pending regulatory approvals.
Based in Bangkok, Thai Tiger will operate international and domestic flights out of Suvarnabhumi Airport offering short-haul, point-to-point services within a 5-hour flying radius. The route network and further information on the corporate structure will be announced in due course.
For its 49.8 per cent stake, THAI will inject Bt99.6 million into the new company, which will provide the ultra low fare services.
"For people in Thailand and the region, our launching of Thai Tiger will mean that in addition to the global network of premium services operated by THAI, more people will have access to new low fare, point to point services, giving a big boost to tourism and employment," said THAI President Piyasvasti Amranand.
THAI and a Thai entity will collectively hold 51 per cent while Tiger Airways will hold 49 per cent. The Thai Tiger Board will consist of three nominees from THAI and two nominees from Tiger Airways, with the Chairmanship being held by THAI. Tony Davis, Tiger Airways Group President and CEO, and Ryanasia principal Declan Ryan will sit on the Board of Thai Tiger as nominees for Tiger Airways. Declan Ryan was one of the founding shareholders of both Tiger Airways and Ryanair.
Piyasvasti believed 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 as a result of continued Asean air liberalisation policies by 2015 which "we expect will lead to growth in air travel in the Asian market. Thai Tiger will offer an entirely different line of products to that offered by THAI".
"Thai Tiger will be well positioned to offer low fares to even more parts of the Asia-Pacific region from its base in Asia's tourism leader, Thailand. Bangkok is a key gateway to the whole of South East Asia and from its base at Suvarnabhumi Airport, Thai Tiger will be well positioned to also serve 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," Davis added.
Thai Tiger will operate a consistent Airbus A320 aircraft fleet in line with other airlines in the Tiger Airways Group.
Tiger Airways, established in September 2004, now operates a fleet of 19 Airbus A320-family aircraft and is committed to increasing its fleet size to 68 by December 2015. The airline currently operates flights to 37 destinations in 11 countries and territories across Asia and Australia.