China Airlines enters low-cost aviation market; Tigerair Taiwan to take off by end of next year

Text/Compiled and reported by Chen Guanxin, MOOK Travel Life Network

 

Competition in Taiwan’s low-cost carrier (LCC) market is heating up to a fever pitch. China Airlines has officially announced its entry into the low-cost aviation market, forming a joint venture with Singapore’s largest low-cost airline—Tigerair, to establish “Tigerair Taiwan.” The new airline is expected to begin operations by the end of 2014, offering travelers another flying option. Passengers on LCCs not only enjoy lower fares, but can also complete the entire booking and ticketing process online, while customizing their experience by selecting add-on services such as checked baggage and in-flight meals based on individual needs.

China Airlines Chairman Sun Hongxiang said: “As a leader in Taiwan’s civil aviation market, China Airlines is stepping into the low-cost aviation sector as a joint venture partner, establishing ‘Tigerair Taiwan’ together with Tigerair. By combining China Airlines’ deep knowledge of the Taiwan market with Tigerair’s low-cost DNA, we aim to stimulate demand in Taiwan’s civil aviation market, pioneer a new era for Taiwan’s airline industry, and build the first low-cost airline in Taiwan.”

 

Founded in 2004 and part of the Singapore Airlines group, Tigerair is the leading low-cost carrier in Singapore. Tigerair CEO Koay Peng Yen stated: “This partnership will help us enter the untapped markets of Taiwan, Japan, and South Korea. With China Airlines’ extensive market knowledge and our experience in the low-cost aviation industry, we are more confident in establishing a competitive and sustainably growing low-cost airline.”

 

China Airlines and Tigerair completed the joint venture agreement on December 15. Tigerair Taiwan will be based in Taiwan and will immediately begin the application process for setting up the new company in accordance with regulations from the Civil Aeronautics Administration. Once it obtains the Air Operator Certificate (AOC) from the CAA, it can commence operations. Tigerair Taiwan has a registered capital of NT$2 billion, with China Airlines Group holding a 90% stake and Tigerair holding 10%. The airline’s network will cover major destinations across Northeast Asia, Southeast Asia, Hong Kong, Macau, and both sides of the Taiwan Strait.

 

 

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TransAsia establishes Taiwan’s first low-cost carrier; naming contest offers 10 years of free flights

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