MySheen

China Airlines combines Tiger Airlines to develop low-cost aviation business

Published: 2024-11-22 Author: mysheen
Last Updated: 2024/11/22, According to foreign reports, China Airlines and Tiger Airlines (TigerAirwaysHoldingsLtd.) will cooperate to set up a low-cost airline in Taiwan. China Airlines will hold a 90% stake in the joint venture and the rest will be owned by China Airlines, the two airlines said in a statement.

China Airlines combines Tiger Airlines to develop low-cost aviation business

华航结合虎航 发展廉航事业

According to foreign reports, China Airlines and Tiger Airlines (Tiger Airways Holdings Ltd.) will cooperate to set up a low-cost airline in Taiwan.

China Airlines will hold a 90% stake in the joint venture and Tiger will hold the rest, the two airlines said in separate statements. Singapore-based Tigerair Taiwan points out that the new joint venture will be named Taiwan Tiger Airlines (Tiger Airlines) with a capital of NT $2 billion (US $67 million).

Tiger has joined AirAsia Bhd. And Qantas Airways Ltd.'s Jetstar in setting up low-cost airlines over the past year. Low-cost airline traffic in Asia has tripled since 2008, according to data compiled by Bloomberg.

The Taipei Times (Taipei Times) quoted the Civil Aviation Administration (CAA) as saying that two low-cost airlines are expected to start operating next year, including Taiwan's Tiger Airlines and TransAsia Airlines.

"the new joint venture will allow us to expand into new and untapped markets in Taiwan, Japan and South Korea," Tiger President Koay Peng Yen said in a statement.

In addition, ─ Scoot, a budget carrier of Singapore Airlines (Singapore Airlines Ltd.), is said to be planning to set up a Bangkok-based low-cost airline with Thailand's Nok Airlines PCL. According to Cool Airlines and Flying Bird Airlines statements, the initial investment will reach 2 billion baht (US $62 million), with Flying Bird holding 51 per cent and Cool Airlines accounting for 49 per cent.

Singapore Airlines is Tiger's largest shareholder with a 33% stake, according to data compiled by Bloomberg.

 
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