Singapore-based Tiger Airways is seeking to establish itself as the second pan-Asian low-cost carrier after Malaysia’s fast growing AirAsia by setting up bases in other countries.
Tiger, 49%-owned by Singapore Airlines, has for more than a year been looking to partner other companies to set up an associate carrier in another country to enable it to expand its reach. Chief executive Tony Davis says that the establishment of a second base “will definitely be this year”.
He says: “We have three more aircraft being delivered before the end of the year that we can use towards the new base once we establish that.” He declines to say where the base will be. Tiger is thought to have looked at countries such as Indonesia, Malaysia and the Philippines, however.
The airline has grown rapidly since its launch in September 2004 and operates to 16 destinations with six Airbus A320s, two of which were added recently. It has six more A320s on order.
The carrier wants to expand into other markets, but is tied by restrictive bilateral air services agreements. All Tiger’s routes are from Singapore apart from one, between Manila and Macau.
AirAsia took the lead in finding a way around ownership and control restrictions. It achieved this by adding a second base through the establishment of 49%-owned associate carrier Thai AirAsia, which is based in Bangkok. It also now has a 49%-owned associate in Indonesia.■
Source: Airline Business
