Thai Airways International and Tiger Airways Holdings Limited today signed a Memorandum of Understanding to form a new low cost airline called Thai Tiger Airways Private Limited. The new airline will operate cheap flights on the same low fare, low cost model as the other airlines in the Tiger Airways Group, and is expected to commence operations in the first quarter of 2011, pending regulatory approvals. Based in Bangkok, Thai Tiger will operate international and domestic flights out of Suvarnabhumi International Airport offering short-haul, point-to-point services within a 5-hour flying radius.

Mr. Piyasvasti Amranand, THAI President, said, "We are pleased to partner with Tiger Airways in establishing Thailand’s newest airline, Thai Tiger. With its disciplined approach to the low-cost model, Tiger Airways has proven that it has the right approach to competing effectively in the growing low fare travel market in Asia. For people in Thailand and the region, our launching Thai Tiger will mean that in addition to the global network of premium services operated by THAI, more people will have access to new low fare, point to point services, giving a big boost to tourism and employment. THAI and a Thai entity will collectively hold 51% while Tiger Airways will hold 49%. The Thai Tiger Board will consist of three nominees from THAI and two nominees from Tiger Airways, with the Chairmanship being held by THAI."

"We believe that this move will provide revenue opportunities for THAI and allow THAI to be more competitive in the region with the anticipated growth in the low cost market as a result of continued ASEAN air liberalization policies by 2015 which we expect will lead to growth in air travel in the Asian market. Thai Tiger will offer an entirely different line of products to that offered by THAI," Mr Amranand added.

Mr. Tony Davis, Tiger Airways Group President and CEO, said, "Thai Tiger will be well positioned to offer low fares to even more parts of the Asia Pacific region from its base in Asia’s tourism leader, Thailand. Bangkok is a key gateway to the whole of South East Asia and from its base at Suvarnabhumi Airport, Thai Tiger will be well positioned to also serve destinations in North Asia and the Indian sub-continent. Spreading our paw-print means greater economies of scale for Tiger Airways, which in turn enables us to lower costs and fares even further."