Tigerair unveils alliance strategy with China Airlines, SpiceJet and Scoot

Tigerair announced (16-Dec-2013) 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, the carrier said. These latest strategic alliance initiatives comprise:

• A JV agreement with China Airlines to establish a Taiwan-based budget carrier, Tigerair Taiwan. This 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. The partner carriers will be submitting applications for regulatory approvals from Taiwan's Ministry of Economic Affairs and Civil Aeronautics Administration;
• An interline agreement with SpiceJet to enable greater connectivity between both carriers. 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 01-Jan-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-Jan-2014, Tigerair customers will enjoy easy access to SpiceJet's domestic network in India, making their holiday and business travel more seamless, the airlines said;
• An alliance agreement with interline partner, Scoot, to expand and deepen their collaboration in commercial activities and network coordination. Following the signing of this agreement, both parties will submit an application to the Competition Commission of Singapore (CCS) for anti-trust immunity.

Tigerair Group CEO 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." 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. [more - original PR]