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CAL and Tiger set up budget carrier in Taiwan
Taiwan News, Staff Writer
2013-12-16 12:30 PM
China Airlines Ltd. (TWSE : 2610) and Tiger Airways have announced a plan to jointly set up a budget airline in Taiwan amid increasing travel demand in Northeast and Southeast Asia.

China Airlines and Tiger Airways signed the deal on Sunday and made separate announcements later on Monday morning. In this joint venture, China Airlines will own 90 percent of the share, with Tiger holding the remainder, in a capital of NT$2 billion (equivalent to US$67.5 million).

According to the China Airlines, the new carrier, to be named Tigerair Taiwan, will be based in Taiwan. Tigerair Taiwan will start to operate after obtaining a license from Taiwan's Civil Aeronautics Administration and is expected to serve the markets in Northeast Asia and Southeast Asia, including Japan, Korea, Hong Kong and mainland China.

China Airlines shares gained 0.5 percent to NT$10.70 as of 12:07 a.m. today in Taipei trading.

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