China Airlines has announced plans to enter the low cost market with through a joint venture with Singapore’s Tigerair, to be called Tigerair Taiwan.
The new carrier is likely to commence operations at the end of 2014, says the Skyteam carrier. China Airlines will control 90% of the low cost carrier, and Tigerair the balance. Its capitalisation will be New Taiwan dollars (NT$) 2 billion ($85 million).
“China Airlines' knowledge of the Taiwan market as well as Tigerair's LCC DNA should stimulate demand in the civil aviation market here, usher in a new era for the local aviation industry, and create Taiwan's first LCC,” says chairman Sun Huang-hsiang.
Preparations to launch the new carrier will be commence shortly with the Taiwan’s Civil Aeronautics Administration (CAA).
“The agreement will help us enter new markets in Taiwan, Japan and Korea,” says Tigerair chief executive Koay Peng-Yen. “The combination of China Airlines' familiarity with these markets and our experience in the LCC industry makes us even more confident of establishing a competitive LCC that will continue to grow.”
China Airlines adds that the new carrier will “cover major destinations in Northeast and Southeast Asia, Hong Kong, Macau, China, and Taiwan.”