Tigerair beefs up Scoot cooperation, signs SpiceJet interline deal

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Tigerair will expand its cooperation with Scoot, and has entered an interline agreement with Indian low cost carrier SpiceJet.

The enhanced Scoot alliance will expand on the pair’s interline agreement through Singapore's Changi airport.

Pending regulatory approvals in Singapore, areas of collaboration “could potentially include the joint operation, sales and marketing of parallel routes, which will offer customers increased flexibility and flight options,” says Tigerair. “It could also include alignment of policies, conditions, pricing, and scheduling, to pave the way for a seamless integration of systems and improved connectivity.

Tigerair’s three-year interline agreement with SpiceJet will start from 1 January 2014, it says in a statement. Passengers on 14 SpiceJet services to Hyderabad will be able to connect directly onto Tigerair’s services to Singapore, while Singapore passengers will also be able to connect onward to other Indian destinations through Hyderabad.

The fourteen cities are Ahmedabad, Bhopal, Mumbai, Kolkata, Coimbatore, New Delhi, Goa, Indore, Mangalore, Madurai, Pune, Rajahmundry, Tirupati, and Visakhapatnam.

Tigerair says the alliances, coupled with the establishment of Tigerair Taiwan in partnership with China Airlines, are part of its strategy to “accelerate business growth in the key Asian markets of North-east Asia, India, and Singapore without over-stretching its resources.”

Tigerair chief executive CEO Koay Peng Yen says the strategy will grow Tigerair’s footprint, lower its cost base, and build a stronger brand regionally.

“These alliances will enable us to tap on the strengths of our strategic partners and extend our presence into existing and new markets without taxing our balance sheet,” says Koay. “They will also translate into greater travel options for our customers, and that is something we can certainly look forward to.”

Tigerair’s overseas forays have been a sore point for the carrier’s balance sheet in recent years. Tigerair's associates in Indonesia and the Philippines continue to bleed in the 2014 fiscal second quarter ended 30 September.

During the period, Tigerair Mandala's contribution to the group's operating loss was Singapore dollars (S$) 7.7 million ($6.2 million) and Tiger Philippines was S$9 million.