Thai Airways has tweaked the ownership structure of its low-cost joint venture with Tiger Airways by confirming its stake, and giving employees a share in the company.
The Star Alliance member will own a 49.9% stake in ThaiTiger Airways, with the employees of the new joint venture holding a collective 1.1% share. This will ensure that the airline remains majority Thai ownership, an issue that was a potential political hot potato in the country.
When the announcement was first made in August, Thai said that it and an undisclosed Thai entity would hold a 51% stake in the new carrier
Singapore-based low-cost carrier Tiger will have a 39% stake in the carrier, while Ryan Asia - Declan Ryan's holding company that also has a share in Tiger - will own the remaining 10%.
Thai's board approved the ownership structure, and an investment of 99.8 million Thai baht ($3.3 million) in the venture, says the airline.
"Once ThaiTiger is officially registered as a corporation, the airline will apply for air operating license," adds Thai. The partners hope to receive an operating license in the first quarter of 2011 and begin services by the end of March 2011.
The carrier will operate Airbus A320 aircraft on both domestic and international routes, with services from both Bangkok's main Suvarnabhumi Airport and the smaller Don Maung Airport an option.
It will compete directly on high-yield high-demand routes against Thai AirAsia, an associate of Malaysia's AirAsia, which has eroded Thai's market share in recent years with its low-cost services out of Suvarnabhumi.
Source: Air Transport Intelligence news
