Tigerair enters into strategic alliances with China Arlines, SpiceJet and Scoot

Part of aggressive Asian growth strategy.

Tigerair annnounced that it has entered into strategic alliances with three airlines to expand its network and commercial cooperation. These initiatives form part of its strategy to accelerate business growth in the key Asian markets of North-east Asia, India, and Singapore without overstretching its resources.

These latest strategic alliance initiatives comprise: 1) a joint-venture agreement with China Airlines to establish a Taiwan-based budget carrier; 2) an interline agreement with SpiceJet to enable greater connectivity between flights operated by both carriers, and 3) an alliance agreement with interline partner, Scoot, to expand and deepen their collaboration in commercial activities and network coordination.

Group CEO of Tigerair Mr Koay Peng Yen said, “We are excited to move forward with our alliance strategy, in line with our focus to grow our footprint in Asia. The partnerships unveiled today will help us to expand our network, attain greater cost-savings, and build a stronger brand presence in the region.

“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. They will also translate into greater travel options for our customers, and that is something we can certainly look forward to.”

The first of the alliance agreeements will see Tigerair and China Airline establish Tigerair Taiwan, a Taiwan-based budget carrier, which will extend Tigerair’s presence into the new and largely untapped markets of Taiwan, Japan, and Korea.

The new carrier will operate under the Tigerair brand and be independently managed. Tigerair will initially hold 10% of the start-up, and Tigerair’s website will be the main sales and distribution platform. China Airlines is Taiwan’s largest airline and currently operates a fleet of 75 aircraft to 109 domestic and international destinations in its network. The partner carriers will be submitting applications for regulatory approvals from Taiwan’s Ministry of Economic Affairs and Civil Aeronautics Administration.

Meanwhile, Tigerair and SpiceJet have inked a three-year interline agreement to enable both airlines’ customers the benefits of connecting onto each other’s flights. Starting from 1 January 2014, customers travelling on SpiceJet’s domestic network from 14 Indian cities including Bombay, Delhi and Coimbatore can enjoy seamless connection in Hyderabad onto Tigerair’s Singapore-bound flights.

In the same way, starting from 31 January, Tigerair customers will enjoy easy access to SpiceJet’s domestic network in India, making their holiday and business travel more seamless, the airlines said.

Lastly, the alliance agreement with Scoot will further align their commercial activities, and provide greater choice and flexibility for customers. Following the signing of this agreement, both parties will submit an application to the Competition Commission of Singapore (CCS) for anti-trust immunity.

Approval would allow the airlines to build upon their existing interline cooperation. The present cooperation mainly benefits travellers who live outside of Singapore, but the proposed enhancements will serve the interests of Singapore residents as well.

Tigerair said these could potentially include the joint operation, sales and marketing of parallel routes, which will offer customers increased flexibility and flight options. It could also include alignment of policies, conditions, pricing and scheduling, to pave the way for a seamless integration of systems and improved connectivity.