THAILAND TRAVEL NEWS: Thailand national carrier, Thai Airways International (THAI), has signed an in-principle agreement to purchase 51 percent of regional low-cost carrier Tiger Airways, a subsidiary of Singapore national carrier, Singapore Airlines (SIA), to establish Thai Tiger Airlines (TTA).

The Bt200 million (about $US6.2 million) joint-venture (JV) plans to purchase five A320 aircraft from Airbus next year, and 10 additional aircraft in 2012, putting pressure on Thai AirAsia, which opened its Phuket regional hub flying similar routes as TTI is aiming for last November.

THAI president Piyasvasti Amranand said TTA will use Bangkok Suvarnabhumi international airport as its gateway to fly to other countries in Southeast Asia, with routes to India, China, and Indonesia already planned for introduction early in 2011.

TTI also puts pressure on Australia’s Qantas airlines and its subsidiary Jetstar for low-cost airfares into Australia, and for plans by the Aussie’s to expand their fleet with aircraft based in Singapore, staffed and maintained by lower cost cabin, flight-deck and maintenance staff.

For SIA and THAI the JV represents the chance to expand beyond their respective borders, with a discount airline ready to capitalize on the Asean open skies policy planned for 2015.

By John Le Fevre

Thailand Travel News for August 04, 2010