The board of directors of Thai Airways International Plc has agreed to co-invest with Tiger Airways Holdings Limited to set up a new low cost airline, as said by the executive director of the Legal Department at THAI Niruth Maneepan.
The low-cost Airlines, Thai Tiger Airways, will have an initial capital of 200 million baht. THAI will invest 99.6 million baht, or 49.8 per cent in the new joint venture. THAI’s affiliate firms will take 1.2 per cent stake and Tiger Airlines Holdings will hold the remaining 49 per cent.
The co-investment memorandum of understanding was signed on Monday the 2nd of August, 2010 by THAI president Piyasvasti Amranand and Tiger Airlines Holdings CEO Tony Davis.
It would serve regularly scheduled domestic and international flights from Bangkok's Suvarnabhumi Airport in Thailand. Thai Tiger Airways would be the second low-cost airline operating both domestic and international flights from the Suvarnabhumi Airport. Plans were made to commence operations in the first quarter of 2011, pending regulatory approvals. Thai Tiger would operate international and domestic flights offering short-haul, point-to-point services within a 5-hour flying radius. Thai Tiger had originally planned to commence operations in May 2011, though by July 2011 the Thai government had not yet approved the airline.