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Tigerair Taiwan and NokScoot usher in more change and growth for Asia’s dynamic low-cost sector

Analysis

The Singapore Airlines (SIA) Group is significantly increasing its involvement in Asia's fast-growing low-cost market with the establishment of a new Scoot affiliate in Thailand and a new Tigerair affiliate in Taiwan. The projects further intensify competition in Asia's dynamic LCC sector and gives Scoot and Tigerair a wider portfolio, reducing their reliance (and the SIA Group's reliance) in the Singapore market. The new airlines are among eight new LCCs slated to be launched in 2014, accelerating growth and further shaking up a sector of the industry which has already seen rapid fire change in recent years.

NokScoot, a joint venture between SIA long-haul LCC subsidiary Scoot and Thai Airways short-haul LCC affiliate Nok Air, will operate widebody flights from Bangkok Don Mueang in competition with start-up Thai AirAsia X. Tigerair Taiwan, a joint venture between the Tigerair Group and Taiwan's China Airlines (CAL), will operate narrowbody flights from Taipei in competition with TransAsia's planned LCC subsidiary.

Tigerair and Scoot have also announced an increased partnership in Singapore with the filing of an application for anti-trust immunity. In addition Tigerair has forged its first interline partnership outside the SIA Group, with Indian LCC SpiceJet.

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