After marking a strong presence in the South Asian low cost carrier market, Tiger Airways is all set to replicate the same in North East Asia.
Tigerair with China Airlines will be launching a new budget carrier in Taiwan by name Tigerair Taiwan.
According to the joint-venture agreement, Tigerair will invest $6.77 million in the new airline and hold a 10% stake, whereas China Airlines will invest $60.93 million and hold the remaining shares.
Tigerair Taiwan will operate under the Tigerair brand, and as a no-frills carrier providing international air travel services in North-east Asia.
It will be managed as a standalone entity, with a separate board and management team.
The new budget carrier will be using Tigerair's website as the main sales and distribution platform.
Group CEO of Tigerair, Koay Peng Yen, says:
"The new JV will allow us to extend our presence into the new, untapped markets of Taiwan, Japan, and Korea. There is vast potential for growth in these markets and also areas of synergy to be explored between the two airlines."
Chairman of China Airline Sun Hung-Hsiang says:
"Today is the 54th birthday of China Airlines and the start of our 55th year. China Airlines' knowledge of the Taiwan market coupled with Tigerair's expertise in the no-frills sector should stimulate demand in the civil aviation market here. We look forward to ushering in a new era for the local aviation industry, and creating Taiwan's No.1 budget carrier."
Just two weeks ago, Tiger Airways (which includes its four brands Tigerair Singapore, Tigerair Mandala, Tigerair Philippines and Tigerair Australia) increased its distribution capability by listing in Travelport GDS.
When asked about Tigerair Taiwan's inventory listing in Travelport GDS and optional services (such as checked-in bags, pre-allocated seating and meals) availability to agents via the Travelport Merchandising Platform, the airline says:
"As this airline will be operating as a Tigerair branded airline, its product and service offerings will be similar to those offered by other Tigerair airlines. It will also share the distribution and technology platforms of the other Tigerair airlines."
When asked about the various strategies Tigerair has in place for this new brand, it says:
"We will continue to work closely to add value to our customers’ experience by constantly enhancing our technology, as can be seen on Tigerair’s user-friendly mobile app application which has surpassed one million downloads."
Tigerair and China Airlines will be submitting applications for regulatory approvals from Taiwan’s Ministry of Economic Affairs and Civil Aeronautics Administration, and the airline is expected to be operational by Q4 2014.
NB:Tigerair image via Tigerair Facebook page.