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Thai Tiger Airways To Begin Operations In May

BANGKOK, Nov 20 -- Thailand's new low-cost airlines 'Thai Tiger Airways' is set to begin operations in May next year, according to Thai News Agency on Friday.

In August, national flag carrier Thai Airways International and Singapore's budget carrier Tiger Airways signed a memorandum of understanding (MoU) to launch the new low-cost airlines, 'Thai Tiger Airways,'

According to Thai Airways International (THAI) board of directors chairman Amphon Kittiamphon, a meeting with the legal departments fo THAI, Transport Ministry and an international law firm was held on the setting up of the airline does not contradict with any legal aspects of Thailand's laws and regulations.

The meeting also agreed to propose to the ministry and to the National Economic and Social Development Board, to consider converting reserve funds to become investment funds to THAI around Bt99.8 million (US$1=Baht 29.93) in order to set up Thai Tiger Airways, according to regulations to investment budget of state enterprises in 2007.

He said THAI will hold a 49.9 per cent share of Thai Tiger Airways, while the airline's staff whose nationalities are Thai will be holding 1.1 per cent, which will make THAI the airline's major shareholder at 51 per cent.

Tiger Airways Holdings Ltd will hold 39 per cent of the shares and the remaining 10 per cent will be held by Ryan Asia Ltd.

The airline's board of directors structure was adjusted from five to seven persons. Four representatives are from THAI, 2 from Tiger Airways, and one from Ryan Asia.

The MoU to launch Thai Tiger Airways indicates 17 main conditions, among are the the Thai Tiger business strategy must not compete directly with THAI's business management and it has to achieve a real market share among other low-cost airlines, which are now growing at about 20 per cent annually.

THAI also has the power to appoint representatives to the board of directors' to form a majority so it can appoint executives, control management, finance and staff.