Thai Airways International (THAI) and Tiger Airways recently announced the signing of a deal to form a new Low Cost Carrier (LCC) called Thai Tiger Airways Private Limited (THAI Tiger). The new airline will operate the same low fare, low cost model as the other airlines in the Thai Airways Group, and is set to commence operations in Quarter One of 2011.
The joint venture consists of 51 per cent ownership by Thai Airways International and 49 per cent by Tiger Airways. According to a report in etravelblackboardasia.com THAI Tiger will be based out of Suvarnabhumi International Airport in Bangkok and will offer short-haul, point-to-point services within a five-hour flying radius. THAI Tiger will operate a fleet of A320 aircraft, consistent with other airlines in the Tiger Airways Group.
Piyasvasti Amranand, President, Thai Airways International said, �We are pleased to partner with Tiger Airways in establishing Thailand's new airline, THAI Tiger. With its disciplined approach to the low-cost model, Tiger Airways has proven that it has the right approach to competing effectively in the growing low fare travel market in Asia.�
Amranand added, �The THAI Tiger Board will consist of three nominees from THAI and two nominees from Tiger Airways, with the Chairmanship being held by THAI.� He also noted the differentiation that the joint venture will provide Thai Airways International. THAI Tiger will offer an entirely different line of products to that offered by THAI.
Tiger Airways nominated Tony Davis and Ryanasia principal Declan Ryan, one of the founding shareholders of both Tiger Airways and Ryanair, to sit on the Board.
Reflecting on the economic benefits that the venture offered, Tony Davis, President and CEO, Tiger Airways Group said, �THAI Tiger will be well positioned to offer low fares to even more parts of the Asia Pacific region from its base in Thailand. Spreading our foot print means greater economies of scale for Tiger Airways, which in turn enables us to lower costs and fares even further.�