Tiger Airways has dropped its plan to form a Bangkok-based low-cost joint venture with Thai Airways after failing to get the necessary investment approvals from the Thai government.
"As a result, Thai, Tiger Airways and Ryanthai have today [8 December] decided not to proceed with the incorporation of Thai Tiger," the low-cost carrier said in a stock exchange statement.
Ryanthai is the third party involved in the agreement and was supposed to have a 10% share in the joint venture,
In October, Thai Airways increased its stake in its low-cost associate Nok Air from 39% to 49%, casting more doubts on the Thai Tiger joint venture.
Tiger and Thai had signed a memorandum of understanding in August 2010 with the aim of starting up the joint venture by the first quarter of 2011. The plan has, however, been stuck in limbo from the start with the Thai government failing to give regulatory approval despite several rounds of talks.
Source: Air Transport Intelligence news