By MOOK Travel Life Network, reported by Chen Guanxin
Domestic low-cost carrier (LCC) competition 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 an alternative flying option. Passengers flying with LCCs can enjoy low fares, complete booking and ticket purchasing entirely online, and customize their experience by selecting value-added services such as checked baggage and meals based on individual needs.
Tigerair Taiwan, a joint venture between China Airlines and Singapore’s Tigerair, is set to begin operations by the end of next year. (Image provided by China Airlines)
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 to establish ‘Tigerair Taiwan’ with Tigerair. By combining China Airlines’ deep familiarity with the Taiwan market with Tigerair’s low-cost DNA, we hope to stimulate demand in Taiwan’s civil aviation market, pioneer a new chapter for Taiwan’s aviation industry, and build Taiwan’s first low-cost airline.'
Tigerair, established in 2004 and part of the Singapore Airlines Group, 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 confident in establishing a competitive and sustainable 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 applying for the establishment of the new company in accordance with regulations from the Civil Aeronautics Administration. After obtaining the Air Operator Certificate (AOC) issued by the CAA, operations can commence. Tigerair Taiwan will have a registered capital of NT$2 billion, with the China Airlines Group holding 90% and Tigerair holding 10%. The airline’s network will cover major destinations across Northeast Asia, Southeast Asia, Hong Kong, Macau, and cross-strait routes.
● Further Reading:
TransAsia establishes Taiwan’s first low-cost airline, holds naming contest with free 10-year flight tickets as prize
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