McTiger moves on Korea
SINGAPORE – A partnership between Tiger Aviation and the city of Incheon will establish a new Korean low fare airline – Incheon Tiger Airways.
The move is expected to help establish Incheon as a leading air transport hub for North East Asia.
The proposed airline is expected to operate domestic services initially before launching international operations to regional destinations.
Tiger Aviation and Incheon Metropolitan City will work on the required approvals from the central government necessary to secure the appropriate traffic rights.
The move follows statements by Tiger Airways CEO, Tony Davis, at the Centre for Asia-Pacific Aviation’s (CAPA) Outlook Summit in Singapore last week that the airline would pursue franchise agreements across Asia.
“We would control the branding and distribution, but it would be very much like a McDonalds franchising arrangement”, said Davis.
The carrier is not seeking majority control of its ventures in all cases, although its first two operations, in Singapore and Australia, are 100 percent controlled by the Tiger Airways group, which is in turn 49 percent owned by Singapore Airlines.
CAPA said a potential hitch to the Korean operation is moves by the Transportation Ministry only to grant international licences to airlines that have operated domestic routes for a minimum of three years without any major accidents. An amendment to aviation policy to change this requirement is expected by the end of 2007.
Tiger Aviation recently concluded an order with Airbus Industries for a further 50 aircraft, making a combined fleet of 70 aircraft by 2016. It is anticipated that the initial fleet operated by Incheon Tiger Airways will be five A320 aircraft.
Ian Jarrett
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