China Airlines ventures into low-cost aviation: "Tigerair Taiwan" to take off by end of next year

By MOOK Travel & Lifestyle Network, Chen Guanxin, compiled and reported

 

Competition in the domestic low-cost carrier (LCC) market is heating up to a fever pitch. China Airlines has officially announced its entry into the low-cost aviation sector, 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 an alternative flying option. Passengers on LCCs not only enjoy lower fares but can also complete booking and ticket purchasing entirely online, while enjoying value-added services such as checked baggage and in-flight meals tailored to their 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’ with Tigerair. By combining our deep familiarity with the Taiwan market with Tigerair’s low-cost aviation DNA, we aim to stimulate demand in Taiwan’s civil aviation market, pioneer a new era for Taiwan’s aviation industry, and build the first low-cost airline in Taiwan.”

 

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

 

China Airlines and Tigerair completed their joint venture agreement on December 15. Tigerair Taiwan will be based in Taiwan and will immediately begin applying for the establishment of the new company in accordance with the regulations of the Civil Aeronautics Administration. Once the Civil Aeronautics Administration issues the Air Operator Certificate (AOC), operations can commence. The registered capital of Tigerair Taiwan is NT$2 billion, with the China Airlines Group holding 90% and Tigerair holding 10%. The airline’s route network will cover major destinations in Northeast Asia, Southeast Asia, Hong Kong, Macau, and both sides of the Taiwan Strait.

 

 

● Extended Reading:

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

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