China Airlines and Singapore's Tigerair form joint venture; new low-cost carrier to launch as early as 2014

▲ Taiwan's new low-cost carrier will be a joint venture between China Airlines and Singapore's Tigerair. The photo above shows a China Airlines livery aircraft. (Photo / Tourism Bureau)

Travel Center / Comprehensive Report

Low-cost carriers are increasingly becoming the new mainstream in travel. Following TransAsia Airways' announcement of plans to establish a low-cost airline, China Airlines is also reported to be forming a joint venture with Singapore's low-cost carrier Tigerair to capture a share of Taiwan's low-cost aviation market. The aim is to begin operations within next year (2014), ahead of TransAsia Airways, becoming the first domestic low-cost carrier to take to the skies.

Although details will not be officially announced until next Monday (December 16), it is understood that the joint venture plan between China Airlines and Tigerair has reached its final stage. Unless something unexpected happens, an official signing ceremony with Tigerair will take place the day after tomorrow. Going forward, the new low-cost airline's operations will be led by China Airlines, which holds a larger stake, while Tigerair will provide management and technical expertise. More specific details are currently not being disclosed by China Airlines.

In response to China Airlines' announcement about establishing a low-cost carrier, TransAsia Airways only responded discreetly, expressing hope that everyone would work together. At the same time, it mentioned that based on its current progress, its own low-cost airline is expected to officially launch as early as September 2014 (Year 103 in Taiwan’s calendar).