Thai & Tiger Airways Form New Budget Carrier

Singapore's Tiger Airways is joining forces with national carrier Thai Airways to form an associate carrier, "Thai Tiger", which will be able tap into northern asia-pacific markets.

The new Bangkok-based airline, is expected to begin operations in the first quarter of 2011, pending regulatory approval.

While the first routes have yet to be confirmed, the new airline will offer domestic as well as international flights within a five-hour flying radius of Bangkok, with A320s.

Speaking at a press conference in Singapore today (Monday 2 August), Tony Davis, President and CEO, Tiger Airways, said: "Our objective is to maximise profitability for the Tiger Group. Intra-Asian travel is on the rise, particularly between Singapore and Thailand and we have a good opportunity to partner with a quality flag carrier. We believe the market will be profitable for us."

"Thailand is a critical destination. Like Bangkok, it is centrally positioned to allow strong access to points in continental Asia."

Within a five-hour sector from Bangkok, the new carrier could reach markets such as Korea or expand Tiger Singapore's current network into to northern India or China.

"We see a gap in the bottom end of the market for the lowest fares - and that is the segment that Thai Tiger will compete in," said Davis.

Thai and a Thai entity will collectively have a majority share in the airline (51%), while Tiger Airways will hold the remaining 49% share.