Thai Tiger Airways To Begin Operations In May

[webfact]

Thai Tiger Airways to begin operations in May

BANGKOK, Nov 19 - Thailand's new low-cost airlines 'Thai Tiger Airways' is set to begin operations in May next year, according to Thai Airways International (THAI) board of directors chairman Amphon Kittiamphon.

In August, national flag carrier Thai Airways International and Singapore's budget carrier Tiger Airways signed a memorandum of understanding (MoU) to launch the new low-cost airlines, 'Thai Tiger Airways.'

THAI board of directors chairman Amphon Kittiamphon announced Friday after a meeting with the legal departments of THAI and Transport Ministry, and an international law firm that setting up the airline does not contradict any legal aspects of Thailand's related laws and regulations.

The meeting agreed to propose to the ministry and to the National Economic and Social Development Board to consider converting reserve funds to become investment funds to THAI around Bt99.8 million in order to set up Thai Tiger Airways, according to regulations to investment budget of state enterprises in 2007.

He said THAI will hold a 49.9 per cent share of Thai Tiger Airways, while the airline's staff whose nationalities are Thai will be holding 1.1 per cent, which will make THAI the airline's major shareholder at 51 per cent.

Tiger Airways Holdings Ltd will hold 39 per cent of the shares and the remaining 10 per cent will be held by Ryan Asia Ltd.

The airline's board of directors structure was adjusted from five to seven persons. Four representatives are from THAI, 2 from Tiger Airways, and one from Ryan Asia.

The MoU to launch Thai Tiger Airways indicates 17 main conditions, he said. One is that the the Thai Tiger business strategy must not compete directly with THAI's business management and it has to achieve a real market share among other low-cost airlines, which are now growing at about 20 per cent annually. THAI also has the power to appoint representatives to the board of directors' to form a majority so it can appoint executives, control management, finance and staff. (MCOT online news)

-- TNA 2010-11-19

[livinthailandos]

Thai Airways & Tiger Airways team up and form a LCC ( lost cost carrier ) although thai airways will have a 51% majority control and power to appoint representatives to the board of directors' to form a majority so it can appoint executives, control management, finance and staff..... but

Thai Airways is mostly Owned through your lovely people in government here. Just like your TOT & CAT is as well. I have to be honest I don't see much success if most of the members are from thai airways, I predict this venture will most likely involve the thai airways version of operating a airline.... and

we all know how well that has worked out. Oh well I guess not much of a challenge for air asia then.

[CobraSnakeNecktie]

any idea if the new carrier will have a Chiang Mai to Udon Thani route?

I am wishing for that route anyway

[bangon04]

Thai Airways & Tiger Airways team up and form a LCC ( lost cost carrier ) although thai airways will have a 51% majority control and power to appoint representatives to the board of directors' to form a majority so it can appoint executives, control management, finance and staff..... but

Thai Airways is mostly Owned through your lovely people in government here. Just like your TOT & CAT is as well. I have to be honest I don't see much success if most of the members are from thai airways, I predict this venture will most likely involve the thai airways version of operating a airline.... and

we all know how well that has worked out. Oh well I guess not much of a challenge for air asia then.

Hasn't THAI already launched a Low Cost Airline? Nok Air anyone????

Maybe they will be able to compete with themselves on all of their own routes, so that they will create extra capacity in First Class to give free seats to friends and families.

[nikster]

I guess Nok isn't doing too well...

I hope they're gonna re-instate the Tiger Airways flight from Chiang Mai - Singapore. That was fantastic. Singapore from CM for 2000 baht or less...

[madmitch]

From what I have read and experienced recently, Tiger are having problems with cancellations, major delays, pilot issues and no doubt other problems as well. I've had a flight cancelled and if you do an internet search you'll read quite a lot of negative press, and not just the usual budget airlines issues. I'm a budget airlines fan but will be avoiding Tiger for the time being.

I don't understand Thai's desire for involvement in two budget airlines and surely Nokair won't survive. Could this merely be a way of getting a cash injection into the struggling LCC? And there must be a major conflict of interest if the four Thai board directors (majority) also sit on the Thai Airways board.

I was also concerned about Ryan Asia Ltd, worried that a certain Michael O'Leary may be involved, but an internet search seems to indicate that Ryan Asia is an investment company, though if anyone knows better, please post.

I have sounded negative but more competition should be good for consumers and I hope my fears are unfounded.

[LindsayBKK]

Well Thailand better get ready for lots of this

Many Episodes for your viewing pleasure. Happy travels people. Thai Tiger

Biggest mistake in Thai Airways history. Well done Boys