4 August 2010 | Thai Airways and Singapore-based Tiger Airways have joined forces to launch a new low-fare airline, called Thai Tiger Airways, in the first quarter of 2011. Thai Tiger will offer short-haul services out of Bangkok’s Suvarnabhumi International Airport and planned destinations include Chiang Mai, Phuket, Penang, Kuala Lumpur, Macau, Shenzhen and Chennai. THAI will have a 51% share in the new carrier.
Budget airlines are expanding rapidly throughout Asia and in 2009 accounted for 15.7 percent of total capacity (compared with just 1 percent in 2001), according to the Center for Asia Pacific Aviation. THAI has seen its market share on domestic routes drop from 80% to 50 % and its regional market share from 42% to 30 % over the last few years. Using the low-cost expertise of Tiger Airways will allow THAI to become more competitive in the fast-growing intra-Asian travel market, and prepare itself for the upcoming liberalization of the ASEAN skies in 2015. THAI already has a 39% stake in domestic low-cost airline Nok Air.
Read full article »