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China Airlines to launch budget carrier with Tiger Air
Central News Agency
2013-12-16 11:53 AM
Taipei, Dec. 16 (CNA) Taiwan's China Airlines (CAL) on Monday announced a joint venture with Singapore's Tiger Airways to set up a Taiwan-based low-cost service to tap into the growing budget travel market. CAL will invest NT$1.8 billion (US$61.02 million) to take a 90 percent stake in the new carrier, to be named Tigerair Taiwan, which will have capital of NT$2 billion, the company said. Taiwan currently does not have any budget carriers of its own, although there are 13 foreign budget airlines that operate in the country. CAL's move came one month after TransAsia Airways (TransAsia), one of Taiwan's smaller airlines, announced a decision to set up a low-cost carrier subsidiary, which is expected to become operational next year. Budget airlines made up less than 4 percent of international flights to and from Taiwan last year, but the ratio grew to 5.7 percent in the first 10 months of this year, according to statistics compiled by the Civil Aeronautics Administration (CAA). Over that period, 1.85 million passengers took low-cost airlines, nearly double the figure of 930,000 for last year, CAA data shows. (By Jackson Chang and Y.F. Low)
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