China Airlines, Tigerair to set up Taiwan;s first LLC

China Airlines (CI, Taipei Taoyuan) has beaten local rivals TransAsia Airways (GE, Taipei Sung Shan) in the race to establish Taiwan's first Low Cost Carrier with the signing of a joint-venture agreement with Singapore's Tigerair (TR, Singapore Changi) establishing Tigerair Taiwan (Taipei Taoyuan). In a statement issued to mark the event on December 15, Tigerair Group CEO, Koay Peng-Yen, said: “The agreement will help us enter new markets in Taiwan, Japan and Korea. The combination of China Airlines' familiarity with these markets and our experience in the LCC industry makes us even more confident in establishing a competitive LCC that will continue to grow.” Under the terms of the agreement, Tigerair Taiwan will be capitalized to the tune of TWD2billion (USD66.7million) with China Airlines Group holding a 90% stake and Tigerair holding the remaining 10%. Based in Taiwan, the new LCC is now in the process of being certified by both the Ministry of Economic Affairs and the Taiwanese Civil Aeronautics Administration (CAA) and expects to launch at the end of 2014. Once operational, Tigerair Taiwan will serve major destinations in Northeast and Southeast Asia, Hong Kong Chep Lap Kok, Macau Int'l, mainland China and Taiwan. According to CAPA, the LCC will use its Singaporean parent's website as its main sales and distribution platform.