Tigerair and SpiceJet partnership leads accelerated LCC growth between India and Southeast Asia

Tigerair's new partnership with SpiceJet could unlock new opportunities for low-cost carrier growth in the India-Southeast Asia market. LCCs currently account for almost 70% of capacity within India and almost 60% within Southeast Asia but less than 30% between the two.

Tigerair Singapore and SpiceJet announced on 16-Dec-2013 an interline agreement which will be implemented in phases in Jan-2014. The interline will initially only cover flights at Hyderabad but could potentially be extended to other Indian airports, particularly if they follow Hyderabad's proactive promotion of transit passengers.

For SpiceJet, the partnership creates an opportunity to compete in the India-Singapore market and potentially in a later phase to expand its offline presence in other East Asian markets. For Tigerair, the partnership significantly increases the group's presence in India, which has emerged as one of its key markets.