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THAI and Tiger Airways sign shareholders agreement

1-Mar-2011 8:14 AM

Thai Airways and Tiger Airways signed (28-Feb-2011) the shareholders agreement necessary to establish LCC Thai Tiger Airways. Once Thai Tiger has been incorporated, a formal application for an air operator’s certificate will be lodged. All documents related to the subsidiary have been submitted to the Transport Ministry. THAI's plan to invest USD3.3 million (THB99.8 million) for its stake in the LCC is still pending approval from relevant authorities, including the Ministry of Transport and the National Economic and Social Development Board. THAI and Tiger Airways welcomed RyanThai Ltd as a co-investor in Thai Tiger. It will hold 10.0% of the paid-up share capital, Tiger will hold 39.0%, while THAI will hold 49.9% and individual Thai shareholders will hold 1.1%. According to Thai Tiger's business plan, the airline is scheduled to commence operations in Jul-2011, with five A320-200 aircraft. The carrier expects to expand its fleet to 20 by 2015. The first 10 aircraft are expected to be transferred from Tiger Airways via an operating lease. Thai Tiger aims to operate nine routes in the first year of operations, including three domestic routes and six regional routes. It hopes to record a positive bottom line in the third year. [more]

The State Enterprise Policy Office (Sepo) of the Finance Ministry said the proposed joint venture did not violate an act governing private sector partnership with the operations of state agencies, an issue raised by the Transport Ministry (Bangkok Post, 01-Mar-2011). THAI president Piyasvasti Amranand stated the carrier has forwarded Sepo's clarification to the ministry. Earlier, the THAI board had resolved the airline would sign the TTA joint venture after the ministry endorsed the deal. However, a joint statement issued by THAI and Tiger Airways on 28-Feb-2011 said the incorporation of TTA would occur after necessary investment approval was granted by Thai authorities.