Thai, Tiger to tie-up

[ycp81]

BANGKOK - THAI Airways International Pcl , the nation's flag carrier, said on Sunday it plans to form a new-low fare airline with Singapore budget carrier Tiger Airways Holdings Ltd.

The two airlines will hold a joint new conference in Bangkok on Monday to announce the signing of a memorandum of understanding for the new airline, said a Thai Airways official, who declined to provide further details.

Thai Airways is 51 per cent-owned by the Thai government.

Tiger is 49 per cent-owned by Singapore Airlines and part-owned by Singapore state investor Temasek. -- REUTERS

[ycp81]

Hmm, so will Nok Air be renamed as Tiger Thai?

[Kyo]

Great political timing on all sides, not.

[sqdazz]

Great political timing on all sides, not.

Kyo - my recent flights to and from BKK were quite full on TG. The airport was bustling. Lots of tourists dont give a hoot about the political situation! (Australians in particular).

[Kyo]

I was more referring to the paranoia and even fear the Thais have of Temasek and the perception of how Thailand 'sold out' during the Thaksin regime to Singapore. One of the topics that still spook the taxi driver 'class'. I can't see how this will help the inner 'red shirt' vs 'yellow shirt' situation.

Anyway, I won't drag this thread off-topic further. Should it somehow achieve the approval of the masses, bring it on...

[flyguy]

and esp when Tiger is also owned by Temasek and SQ (which is also owned by temasek). But does Thailand have room for another LCC as it already have Nok and Thai Air Asia - and even if it does, will this tie-up really offer real viable biz as it stated it will not fly on Nok domestic routes and hence then fly where Tiger flies to and this new tie-up will compete with Tiger on BKK-SIN?

[Nick C]

Thai Girl Airways.

[sqdazz]

90% of airline customers in Thailand are foreigners from what I've seen anyway, especially international routes.

[Kyo]

I take it you're not referring to Thai, Tiger and Thai Air Asia flights btw SIN-BKK, then. Because on the majority of these flights I'm on, it's packed with Thai nationals... (in Y in the case of TG, which I also have the 'pleasure' of enduring)

[flyguy]

seems Tony Davies of Tiger have always been following in air asia's footsteps but abit late as air asia have already established its Thai air asia for a couple of yrs now and also have its Indon air asia and have initiated its viet air asia altho its not flying as yet.
However looking at this Tiger tie-up and its news reports, it stated that this new set up will Not compete with Thai Airways in its routes - but it can compete with SIN Tiger routes?

[sqdazz]

seems Tony Davies of Tiger have always been following in air asia's footsteps but abit late as air asia have already established its Thai air asia for a couple of yrs now and also have its Indon air asia and have initiated its viet air asia altho its not flying as yet.
However looking at this Tiger tie-up and its news reports, it stated that this new set up will Not compete with Thai Airways in its routes - but it can compete with SIN Tiger routes?

Well it will probably operate ex-BKK to destinations Tiger already operate to ex-Singapore, just like Thai AirAsia and Malaysia AirAsia. they may cooperate on the BKK/SIN route just as FD/AK do on KUL/BKK.

[flyguy]

then the thai-sin tiger tie-up airlines would have their female flight attendants called "ThaiGer" as in Tiger ha ha

[flyguy]

or the name of the new tie-up airline ...lol

[sqdazz]

From The Bangkok Post

Why THAI won't invest in Nok Air
Published: 3/08/2010 at 04:45 PM
Online news: Aviation

Thai Airways International (THAI) has turned to a joint investment in a new low-fare airline with Tiger Airways because Nok Airlines could not come up with a marketing strategy to expand its business, THAI board chairman Ampon Kittiampon said on Tuesday.


THAI board chairman and National Economic and Social Development Board secretary-general Ampon Kittiampon

Mr Ampon said THAI's market share had fallen due to the competition from fast-growing low-cost carriers.

The number of THAI flights within the region plunged from 40 per cent to 10 per cent of the market, while its domestic flights dropped from 50 per cent to 30 per cent.

If there are no improvements over the next two years the impact on THAI will be severe, he said.

"THAI had been trying discuss a plan to raise its holding in Nok Air from 39 per cent to 49 per cent so it would be more competitive in the low-cost market, but Nok Air was unable to propose a strategy. This is why the THAI board is finding ways to develop its own low-cost airline," he said.

The board chairman said the joint venture plan was proposed by the board members and the plan needed to be considered as it was a business opportunity.

"We (THAI) have had talks with Nok Air CEO Patee Sarasin but Nok Air doesn't want to develop itself into a super low-cost airline," he said.

Nok Air was not in a position to expand its international routes and therefore THAI had joined forces with Tiger Airways Holdings, he said.

However, he said, there was no conflict between THAI and Nok Air.

“THAI will press ahead with the joint venture as the co-investment process is in line with the law. As a listed firm, THAI has already reported its new investment plan to the Stock exchange of Thailand.

"As a state enterprise, the national flag carrier has also proceeded as required by the state enterprise law,” Mr Ampon said.

The THAI chairman said he was ready to clarify to the transport minister any suspicions about the co-investment plan, which was approved by the board of directors of THAI.

The Finance Ministry, as THAI's major shareholder, will be asked to consider joint venture proposal, he said.

Singapore's Tiger Airways was already well-known in Europe and it was regarded as a 'super low-cost' airline, he said.

He was confident that THAI’s 100 million baht investment would be returned within three years.

Mr Ampon said if THAI does not get involved in the low cost airlines business, which is growing by 10 per cent and 20 per cent annually, it will lose its markets.

THAI and Tiger Airways on Monday signed a memorandum of understanding to create Thai Tiger Airways, 51 per cent owned by THAI and 49 per cent by Tiger, to operate flights out of Suvarnabhumi Airport from early next year.

[B727]

Wonder if they'll be selling BBQ Thai tiger prawn sandwiches on board?