Thai Airways And Singapore's Tiger To Form Budget Carrier

[webfact]

Thai Airways and Singapore's Tiger to form budget carrier

SINGAPORE (AFP) -- Singapore's budget carrier Tiger Airways and Thai Airways will launch a low-cost airline expected to start operations next year, they said Monday, potentially hastening a shake-up in the region.

Thai Tiger Airways will fly domestic and international flights from Suvarnabhumi International Airport in Bangkok, starting in the first quarter of 2011, the statement said.

Thai Airways and another Thai entity will hold 51 percent in the airline with the remaining 49 percent under Tiger Airways.

No details were given on the investment cost for the new budget carrier but the two partners were to hold a media conference call later Monday after signing the memorandum of understanding in Bangkok.

Thai Airways said the venture would allow it to beef up its presence in the fast-growing budget travel market in Asia.

"With its disciplined approach to the low-cost model, Tiger Airways has proven that it has the right approach to competing effectively in the growing low fare travel market in Asia," said Thai Airways president Piyasvasti Amranand.

"We believe that this move will provide revenue opportunities for Thai (Airways) and allow Thai to be more competitive in the region with the anticipated growth in the low cost market... which we expect will lead to growth in air travel in the Asian market."

Tiger Airways, partly owned by national carrier Singapore Airlines, has rapidly expanded its route network in the Asia-Pacific region since establishing operations in 2004.

The carrier flies to 37 destinations in 11 countries and has a fleet of 19 Airbus A320s, with plans to expand to 68 planes by December 2015.

Analysts from the Centre for Asia Pacific Aviation (CAPA) said the new budget carrier could potentially hasten a shake-up for the industry in the region, where some markets are still inhibited by entry barriers.

"The new joint venture... raises the bar in low cost airline operations competition in Asia and could have a major impact on the pace of airline liberalisation in the region," Sydney-based CAPA said in a commentary.

"There will be many more moves in this regional tapestry of low cost airline competition before the end game, but Tiger’s announcement today should not be underestimated in scope."

-- (c) Copyright AFP 2010-08-02

[Guest]

And what happens to Nok Air? Will Thai pull out?

[zzaa09]

Interesting move on Tiger's part, as they've always been seen as one of the regions most stable and profitable carriers. It would be a guess that the Singapore airline would control most of the influence, as Thai Airways has displayed a bad reputation for business practices, underlying corruption, and attempts to expand when they're broke. I'm sure this has mostly to do with {from a Thai Airways perspective} the ability to control - in one form or another - the Thai domestic market. Nearly all Thailand domestic carriers are subsidiaries of the parent company or have less influence from their overlord and master, Aviation and Transportation Ministry, whom Thai Airways has long had in their pocket.

[Shah Jahan]

be really funny if they revoked the flight path of BKK-SIN that Air Asia Does. If I was Dictator for life and wanted to start my own budget airline, that is what I would do at least....

[taurus88]

Long overdue alliance. They have left Thai AirAsia to dominate for much too long in a growing lucrative market. In fact, Nok should have seized the international market opportunity and not just concentrate on domestic route. Too bad now, they missed out on a easy profitable business.

[Wozzit]

Long overdue alliance. They have left Thai AirAsia to dominate for much too long in a growing lucrative market. In fact, Nok should have seized the international market opportunity and not just concentrate on domestic route. Too bad now, they missed out on a easy profitable business.

I am sick and tired of Air Asia and Thai Air Asia's 'cancel at will' attitude and frequent delays. Sure, they're a budget carrier and I realise you get what you pay for. But I have never had the same sort of trouble with Nok or Tiger. I much prefer Nok and wish they flew more international sectors.

[SamritT]

I am sick and tired of Tiger's 'cancel at will' attitude and frequent delays. Sure, they're a budget carrier and I realise you get what you pay for. But I have never had the same sort of trouble with AirAsia. I much prefer JetStar and wish they flew more international sectors.

[Wozzit]

I am sick and tired of Tiger's 'cancel at will' attitude and frequent delays. Sure, they're a budget carrier and I realise you get what you pay for. But I have never had the same sort of trouble with AirAsia. I much prefer JetStar and wish they flew more international sectors.

That comment is just a bit too cute. Neither Jetstar nor Tiger have any domestic services in Thailand. Check your facts.

[jdfmail]

I am sick and tired of Tiger's 'cancel at will' attitude and frequent delays. Sure, they're a budget carrier and I realise you get what you pay for. But I have never had the same sort of trouble with AirAsia. I much prefer JetStar and wish they flew more international sectors.

That comment is just a bit too cute. Neither Jetstar nor Tiger have any domestic services in Thailand. Check your facts.

Where did that poster say anything about Thailand? They are all regional budget airlines. On a side note, I've never had a problem with Airasia but at the same time welcome more competition for my money.

[Wozzit]

I am sick and tired of Tiger's 'cancel at will' attitude and frequent delays. Sure, they're a budget carrier and I realise you get what you pay for. But I have never had the same sort of trouble with AirAsia. I much prefer JetStar and wish they flew more international sectors.

That comment is just a bit too cute. Neither Jetstar nor Tiger have any domestic services in Thailand. Check your facts.

Where did that poster say anything about Thailand? They are all regional budget airlines. On a side note, I've never had a problem with Airasia but at the same time welcome more competition for my money.

I was trying not to waste space by copying endless posts. My post was in response to the one immediately before which was specifically about domestic and regional carriers. Besides, this thread is about domestic and regional routes.

I am sure most travellers have little problem with budget airlines. I have no problem with Nok and Tiger. Not so with Thai Air Asia/Air Asia. Maybe I am one of the few, but 12 out of 18 flights have been either delayed by 3 or more hours, or outright cancelled with disruptions of between 10 - 13 hours. Have you ever tried to phone anyone in the Kuala Lumpur head office to complain about such delays? They now have a 'premium' line where you are guaranteed there will be someone you can actually speak to. Trouble is, they keep you on hold for ages so the cost of the call gets close to the cost of your air ticket!

[zzaa09]

Long overdue alliance. They have left Thai AirAsia to dominate for much too long in a growing lucrative market. In fact, Nok should have seized the international market opportunity and not just concentrate on domestic route. Too bad now, they missed out on a easy profitable business.

You might remember who Nok Air is principally controlled by.....

[thedistillers]

I wonder if they'll fly to Siem Reap or Koh Samui...

Edited August 3, 2010 by thedistillers

[Guest]

Nok Air had a number of international services when they first began ops, but soon pulled out to become only a domestic carrier, reportedly due to financial considerations. As Thai is a major shareholder, I just wonder why they need a tie-up with Tiger when they already have an experienced and well run budget carrier.

[Payboy]

Something tells me this is not going to go down well with Newin and his gang which has a degree of interest in Thai Air Asia.

[SamritT]

open up more domestic airspace to FARANGS (Singaporean/Malaysian). Isn't this is what THAI accuse ThaiAirAsia when it was launch? Noe they do it themselves.

Edited August 3, 2010 by SamritT

[THAILIBAN]

Long overdue alliance. They have left Thai AirAsia to dominate for much too long in a growing lucrative market. In fact, Nok should have seized the international market opportunity and not just concentrate on domestic route. Too bad now, they missed out on a easy profitable business.

NOK did a very bad job promoting their few international routes, so no wonder they failed, and they repeatedly have announced they are not interested to start international routes for the time being.

It can only be good for competition to have a new Airline such as Thai Tiger, as AirAsia fares are usually VERY EXPENSIVE nowadays, unless you book during one of their twice-yearly ZERO FARES - promotions when they introduce their new summer- or winter-timetables.

flying to Phuket or Chiang Mai, AirAsia are usually the 2nd most expensive Airline after THAI INTERNATIONAL.

NOK, Orient Thai (okay okay, no one really wants to fly them) and even the excellent Bangkok Air are cheaper in most of the cases

[Wozzit]

It can only be good for competition to have a new Airline such as Thai Tiger, as AirAsia fares are usually VERY EXPENSIVE nowadays, unless you book during one of their twice-yearly ZERO FARES - promotions when they introduce their new summer- or winter-timetables.

Yes, and when you book on Air Asia's 9-months-ahead zero-fare or low-fare promotions, if traffic patterns change for any reason, you'll find your flights cancelled and alternates offered - usually ones departing at the crack of dawn or late at night. And if you have booked and paid for a connecting flight on another carrier, be prepared to lash out a lot of extra cash as the chances are you'll miss it.

Edited August 3, 2010 by Wozzit

[SamritT]

Bye bye nong Nok, she is getting too old. Wecome nong Tiger, the latest dara (star) in town.

[jackinbkk]

I've never had any problems with Tiger airways.

I've always found the prices reasonable and the service spot on time.

Thai airways and economy? Isn't that an oxymoron? +555

This looks more like a chance to monopolise than anything to me.

[thedistillers]

I've never seen a "very expensive" flight on Air Asia, and I use their search engine regularly. Sure if you don't book in advance you won't get a cheap price, but "very expensive".

I just checked for August 5:

Bangkok - Chiang Mai 1,732 THB

Bangkok - Phuket: 1,676 THB

Bangkok - KL: 2,788 THB

[Wozzit]

I've never seen a "very expensive" flight on Air Asia, and I use their search engine regularly. Sure if you don't book in advance you won't get a cheap price, but "very expensive".

I just checked for August 5:

Bangkok - Chiang Mai 1,732 THB

Bangkok - Phuket: 1,676 THB

Bangkok - KL: 2,788 THB

Just to be accurate, the fares you quote do not include the taxes and fees. For Bangkok to KL you have to add Bt. 700, plus the costs of any non-cabin baggage you may have and on-board food. Granted you don't need a meal on a short flight, but Air Asia, like most budget carriers, does not permit you to bring food or even water on board, even on their relatively new long haul service Air Asia X.

[SamritT]

The beginning of an end for nong NOK.

[webfact]

UPDATE

Thai Airways Defend Tiger Airlines Launch

The president of THAI Airways International has prepared to meet with the transport minister to justify the launch of the new low-cost carrier Tiger Airlines.

The President of THAI Airways International, Amphon Kittiampon, has insisted that the company is moving ahead with a plan to partner with Tiger Airlines Singapore in launching Thai Tiger Airlines, a new low-cost carrier.

Amphon stressed that the founding of the new airline is not in violation of state enterprise investment regulations, and the venture has already been approved by the company's board of executives.

However, according to regulations, THAI operating routes must not be affected by the service offered by the new budget carrier, and the investment level of Nok Air, another national carrier subsidiary, must remain unchanged.

THAI Airways International plans to focus its market on upscale passengers, while Nok Air will continue to provide air travel services for middle income passengers.

Tiger Airlines will offer low-cost flights with a focus on safety. Once the proposal has been finalized, it will be re-submitted to the THAI board of executives.

Amphon has reaffirmed that he is prepared to justify the speedy launch procedure of the new airline to Transport Minister Sophon Saram.

The president of Thailand's national carrier also pointed out that the proposal for the joint-venture has already been reviewed twice and was approved by the board of executives in July.

Meanwhile, the transport minister believes the procedure has been happening too quickly and would like more explanation from THAI Aiways, especially on whether the new airline will affect the national carrier's routes and revenue.

Sophon pointed out that Tiger Airlines could be launched without the Cabinet's approval, but if the new low-cost carrier fails, the executives must take full responsibility.

Sophon also said that the ministry will not do anything that could be seen as interference in the state enterprise's decision.

According to the signed joint-investment agreement and business plan, Thai Tiger Airlines will start offering services in the first quarter of 2011.

-- Tan Network 2010-08-04

[dom samui]

yes,THAI operating routes must not be affected by the service offered by the new budget carrier

[Wozzit]

yes,THAI operating routes must not be affected by the service offered by the new budget carrier

Then where on earth will the new carrier fly? THAI has 10 domestic routes at present, so presumably that rules out much of the country, including the heavy traffic Chiang Mai and Phuket routes. Eve if THAI wants to give up many of these, surely Nok has first call on them? THAI also flies to most major cities regionally. If the new airline is going to be stuck with secondary cities, it will surely not survive.

[whybother]

yes,THAI operating routes must not be affected by the service offered by the new budget carrier

Then where on earth will the new carrier fly? THAI has 10 domestic routes at present, so presumably that rules out much of the country, including the heavy traffic Chiang Mai and Phuket routes. Eve if THAI wants to give up many of these, surely Nok has first call on them? THAI also flies to most major cities regionally. If the new airline is going to be stuck with secondary cities, it will surely not survive.

What generally happened with Qantas / Jetstar in Aus was that Jetstar took the inefficient routes or mainly (local) tourist routes off Qantas' hands. So routes where THAI can't make money will probably be handed over to Tiger.

[spiderleghead]

The beginning of an end for nong NOK.

sure is, wonder who helped tiger to get itself into the country...

[SamritT]

<br />

<br />The beginning of an end for nong NOK.<br />

<br /><br />sure is, wonder who helped tiger to get itself into the country...<br />

<br /><br /><br />

100% not Taksin. Maybe Korn?

[chuang]

Oh yes, the more budget carriers the merrier...

[NanLaew]

Then where on earth will the new carrier fly? THAI has 10 domestic routes at present, so presumably that rules out much of the country, including the heavy traffic Chiang Mai and Phuket routes. Eve if THAI wants to give up many of these, surely Nok has first call on them? THAI also flies to most major cities regionally. If the new airline is going to be stuck with secondary cities, it will surely not survive.

Think new business models, outside the existing paradigms of THAI service and Nok no-frills.

Think outside the box. Beyond checked bag fees and inflight meals. Beyond jet engines.

Think outside... sitting on plastic patio furniture on the wing... propeller wash in your hair...

Hard landings on bush strips in Nakhon Nowhere... or circling endlessly waiting for someone to light the runway lamps.

This could be the dawn of new adventure travel in Isaan and beyond.