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Tiger And Thai To Form LCC In Thailand  
User currently offlineAirbusA322 From Australia, joined Apr 2009, 245 posts, RR: 0
Posted (3 years 11 months 3 weeks 4 days 23 hours ago) and read 6065 times:

I have word that Tiger has reached an agreement with Thai Airways and will establish its third airline in Thailand, alongside the Singapore and Australia bases.

There will be a press conference tommorow morning.

I presume BKK or HKT and it will be starting early/mid 2011.

[Edited 2010-08-01 03:45:08]

27 replies: All unread, showing first 25:
 
User currently offlinehuaiwei From Singapore, joined Oct 2008, 1113 posts, RR: 2
Reply 1, posted (3 years 11 months 3 weeks 4 days 23 hours ago) and read 6037 times:

Wow serious?!?!

This would be first time I have heard of an LCC collaborating with a major full service carrier to establish a local LCC branch, and I would not expect it to be Thai when they are not exactly best of friends with SQ. Did the two Star Alliance members finally realise it is far better to collaborate than to compete?

Also, what will happen to DD?



It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlineAirbusA322 From Australia, joined Apr 2009, 245 posts, RR: 0
Reply 2, posted (3 years 11 months 3 weeks 4 days 23 hours ago) and read 5997 times:

They are signing a MOU.

User currently offlineANstar From United Kingdom, joined Nov 2003, 5157 posts, RR: 6
Reply 3, posted (3 years 11 months 3 weeks 4 days 23 hours ago) and read 5986 times:

Quoting huaiwei (Reply 1):
Also, what will happen to DD?

They still hold a 39% share in Nok Air - so seems rather odd to set up another LCC to compete against them?


User currently offlinehuaiwei From Singapore, joined Oct 2008, 1113 posts, RR: 2
Reply 4, posted (3 years 11 months 3 weeks 4 days 22 hours ago) and read 5907 times:

Quoting ANstar (Reply 3):
They still hold a 39% share in Nok Air - so seems rather odd to set up another LCC to compete against them?

Precisely. Unless the deal actually involves DD becoming a Tiger subsidiary?



It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlinearticulatexpat From Hong Kong, joined Sep 2006, 156 posts, RR: 1
Reply 5, posted (3 years 11 months 3 weeks 4 days 22 hours ago) and read 5878 times:

Quoting ANstar (Reply 3):
They still hold a 39% share in Nok Air - so seems rather odd to set up another LCC to compete against them?

That was my first thought, too. Perhaps Nok's operations will be folded in with the new airline? With Thai Air Asia operating in Thailand already, is there room for another LCC? Are Pattaya and Hua Hin too close to Bangkok to support regular flights?


User currently offlinehuaiwei From Singapore, joined Oct 2008, 1113 posts, RR: 2
Reply 6, posted (3 years 11 months 3 weeks 4 days 21 hours ago) and read 5754 times:

The news on the announcement is out in Singapore's media:

http://www.straitstimes.com/Breaking...s/Money/Story/STIStory_560639.html

No tantalising details thou.



It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlineSuperfly From Thailand, joined May 2000, 39668 posts, RR: 75
Reply 7, posted (3 years 11 months 3 weeks 4 days 19 hours ago) and read 5578 times:

Will they offer cheap fares to Tokyo, Seoul and Shanghai?
Most other destinations in Asia already have low fares out of BKK.



Bring back the Concorde
User currently offlineMHG From Germany, joined Dec 2004, 774 posts, RR: 1
Reply 8, posted (3 years 11 months 3 weeks 4 days 18 hours ago) and read 5449 times:

Seems to be an attempt to "eliminate" 1-2-GO and (preferably) Thai Air Asia.
But i doubt the latter will not survive it ... !



I miss the sound of rolls royce darts and speys
User currently offlinethefuture From , joined Dec 1969, posts, RR:
Reply 9, posted (3 years 11 months 3 weeks 4 days 9 hours ago) and read 5214 times:

The Tiger group has something like 30+ A320's arrving in next 3 years & they have to go somewhere !!!

User currently onlineSASDC8 From Norway, joined Mar 2006, 708 posts, RR: 1
Reply 10, posted (3 years 11 months 3 weeks 4 days 3 hours ago) and read 4927 times:
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Real interesting news, but knowing Thai and Thailand I would not be surprised if this does not happen...

If this does happen I would expect NOK to become part of this new airline, or perhaps they will kill off NOK and start from scrach with the new airline??

It would be great to see 1-2-GO go


Cheers
Stein



2-3-2 is NOT a premium configuration
User currently offlineSuperfly From Thailand, joined May 2000, 39668 posts, RR: 75
Reply 11, posted (3 years 11 months 3 weeks 4 days 2 hours ago) and read 4803 times:

Quoting SASDC8 (Reply 10):
It would be great to see 1-2-GO go

No!   
If they go, wouldn't Orient Thai go as well?
Where else can you fly on a 747-100 in the A-cabin for less than $200?



Bring back the Concorde
User currently onlineSASDC8 From Norway, joined Mar 2006, 708 posts, RR: 1
Reply 12, posted (3 years 11 months 3 weeks 4 days 2 hours ago) and read 4757 times:
Support Airliners.net - become a First Class Member!

Quoting Superfly (Reply 11):
If they go, wouldn't Orient Thai go as well?

I don't think so considering that after the MD-80 crash at HKT, Orient Thai could keep flying while 1-2-GO was grounded.

Or perhaps they just grunded the MD 80 fleet?

Cheers
Stein



2-3-2 is NOT a premium configuration
User currently offlinejfr From United States of America, joined Feb 2005, 227 posts, RR: 0
Reply 13, posted (3 years 11 months 3 weeks 4 days 1 hour ago) and read 4459 times:

Thai Airways has tried all this before. Nok Air has been an up and down things for years. And TG management has many conflicting requirements. It's very hard, if not impossible, for a legacy airline to develop a truly viable LCC subsidiary.

And Yes, of course Nok will likely evaporate. It's only domestic these days anyway. This deal will probably throw enough cash their way to pay off their debts.....Probably one of the reasons this appeals to TG management.

In Thailand, only Thai Airasia has delivered a sharply focused LCC business model. And they are starting to have an impact within the LCC space. But Thailand is not an easy market, with so many dramas....

It will be interesting to see how this plays out. And like many others, I have my doubts it will end well.


User currently offlineIndianicWorld From Australia, joined Jun 2001, 2901 posts, RR: 0
Reply 14, posted (3 years 11 months 3 weeks 4 days ago) and read 4306 times:

Certainly a strange move with Nok Air also on Thai's books  

Tiger is certainly desperate to place its planes. SIN only has a limited market, along with Australia being so competitive, so it makes sense for them to look at new options. Their Korean airline idea fell through and also a base plan for the Phillipines, which were both proising leads, but in this business all options need to be looked into.


User currently offlinehuaiwei From Singapore, joined Oct 2008, 1113 posts, RR: 2
Reply 15, posted (3 years 11 months 3 weeks 3 days 19 hours ago) and read 3936 times:

More news:

http://www.channelnewsasia.com/stori...ebusinessnews/view/1072798/1/.html

"the new airline will be called Thai Tiger Airways and is expected to start operations in the first quarter of 2011."

Tiger Airways Australia, and then Thai Tiger Airways? Clumsy in my opinion.

"Based in Bangkok, Thai Tiger will operate international and domestic flights out of Suvarnabhumi International Airport."

Which means Thai finally has an LCC based where they are based!

"The new carrier will operate a consistent Airbus A320 aircraft fleet, in line with other airlines in the Tiger Airways Group. "

Nok Air only operates Boeings if I recall. Not much of a fleet commonality if they were to merge assets.

And the entire report makes no mention about Nok Air. Hmm...



It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlinethefuture From , joined Dec 1969, posts, RR:
Reply 16, posted (3 years 11 months 3 weeks 3 days 11 hours ago) and read 3795 times:

Quoting IndianicWorld (Reply 14):
Tiger is certainly desperate to place its planes. SIN only has a limited market, along with Australia being so competitive, so it makes sense for them to look at new options.

Trans-tasman is ripe for Tiger. TR can fly the Tasman now. TT can fly charters.

Think before long & with dodgy DJ/NZ alliance proposal, TT will be able to operate scheduled across Tasman.

It could initially fly low frequency to 2ndary posts like Hamilton, Palmerston North, Napier, Dunedin & Invercargill.

Quoting huaiwei (Reply 15):
Tiger Airways Australia, and then Thai Tiger Airways? Clumsy in my opinion.

Not really, everyone will simply call it Tiger, just like evryone calls Virgin Blue, Pacific Blue & Poly Blue, V Australia, simply Virgin.


User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19187 posts, RR: 52
Reply 17, posted (3 years 11 months 3 weeks 3 days 1 hour ago) and read 3615 times:

CAPA article that you might find interesting: http://www.centreforaviation.com/new...ralisation-the-likely-winner/page1


"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineKFlyer From Sri Lanka, joined Mar 2007, 1226 posts, RR: 0
Reply 18, posted (3 years 11 months 3 weeks 3 days ago) and read 3592 times:

Just had the word from Nok Air CEO Patee on Twitter, that the two airlines will remain seperate. According to him, no change to Nok Air.


The opinions above are solely my own and do not express those of my employers or clients.
User currently offlinechristao17 From Thailand, joined Apr 2005, 938 posts, RR: 8
Reply 19, posted (3 years 11 months 3 weeks 2 days 23 hours ago) and read 3542 times:

From what I'm reading in the Bangkok English-language press, the thought process around Nok is that it is staking out a middle ground in the domestic market between really LCC (Air Asia and Tiger) and full service (THAI). That doesn't sound like a plausible scenario, but few things here make a lot of sense.

One thing, though, is that I expect there to be a lot of pushback from the Finance Ministry, which owns a large stake in THAI.



Keeping the "civil" in civil aviation...
User currently offlineIndianicWorld From Australia, joined Jun 2001, 2901 posts, RR: 0
Reply 20, posted (3 years 11 months 3 weeks 2 days 22 hours ago) and read 3478 times:

Quoting christao17 (Reply 19):
From what I'm reading in the Bangkok English-language press, the thought process around Nok is that it is staking out a middle ground in the domestic market between really LCC (Air Asia and Tiger) and full service (THAI). That doesn't sound like a plausible scenario, but few things here make a lot of sense.

Are they trying to become a Silk Air (SQ) or a modern day alternative model like Virgin Blue? Its possible they are trying it, but its not easy being everything to everyone without some pain.


User currently offlinehuaiwei From Singapore, joined Oct 2008, 1113 posts, RR: 2
Reply 21, posted (3 years 11 months 3 weeks 2 days 20 hours ago) and read 3384 times:

Quoting IndianicWorld (Reply 20):
Are they trying to become a Silk Air (SQ)

SilkAir is a full service carrier. I do not see why they are a plausible model for either Nok or TTA, unless you mean to say Nok could be upgraded to become a full service regional career?

[Edited 2010-08-03 06:21:29]


It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlinesmi0006 From Australia, joined Jan 2008, 1524 posts, RR: 0
Reply 22, posted (3 years 11 months 3 weeks 2 days 19 hours ago) and read 3315 times:

Quoting jfr (Reply 13):
It's very hard, if not impossible, for a legacy airline to develop a truly viable LCC subsidiary.

JQ seems to do exceptionally well for QF, can anyone else think of any examples?

Quoting huaiwei (Reply 21):
SilkAir is a full service carrier. I do not see why they are a plausible model for either Nok or TTA, unless you mean to say Nok could be upgraded to become a full service regional career?

Perhaps a full service carrier but with LCC operating cost ie. Labour and single aircraft type ala SilkAir. Although I would have thought that Thai would need to become more streamlined and offer far more consistent product for that, and I wouldn't have considered their operating costs that high to warrent it in the first place.


User currently offlinehuaiwei From Singapore, joined Oct 2008, 1113 posts, RR: 2
Reply 23, posted (3 years 11 months 3 weeks 2 days 18 hours ago) and read 3258 times:

Quoting smi0006 (Reply 22):
Perhaps a full service carrier but with LCC operating cost ie. Labour and single aircraft type ala SilkAir.

Again, SilkAir is not operating on an LCC operating cost model. It is a full service "legacy" regional of SQ since its inception which long predates LCCs, and its basic business model has not changed drastically.

Quoting smi0006 (Reply 22):
I wouldn't have considered their operating costs that high to warrent it in the first place.

Perhaps not high by western standards, but please do be mindful that the propensity to travel amongst Thais is not as high either, hence reducing the potential market size.



It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlineairpearl From Malaysia, joined May 2001, 943 posts, RR: 27
Reply 24, posted (3 years 11 months 3 weeks 2 days 3 hours ago) and read 3101 times:

Quoting christao17 (Reply 19):
From what I'm reading in the Bangkok English-language press, the thought process around Nok is that it is staking out a middle ground in the domestic market between really LCC (Air Asia and Tiger) and full service (THAI). That doesn't sound like a plausible scenario, but few things here make a lot of sense.

You've got that right. It looks like Nok is "caught in the middle" but I don't think that middle-ground even exists in Thailand. TG is not such a "premium" carrier to start with, so the space that Nok hopes to occupy could easily be filled by TG. I'm sure in between now and when Thai Tiger starts operations early next year (if it does indeed start), there will be plenty of permutations and combinations involving all three carriers being bandied around, as is common in Thailand. If Thai Tiger becomes a reality, I don't think Nok will stand much of a chance surviving the dogfight that will inevitably happen - which is a shame; I'm rather partial to this little carrier.

Also predictably today, Thai AirAsia has said it will further boost flights by 23% to fend off the new rival.

http://www.nationmultimedia.com/home...o-fend-off-new-rival-30135171.html


25 thefuture : So if this happens, neither TAA or Thai Tiger will make much money on routes that they compete over. Maybe, low frequency options by both, will mean
26 articulatexpat : I'm surprised there has not yet been a post speculating on routes Thai Tiger will serve. Usually these annoy me (especially when they're people foamin
27 huaiwei : 30 aircraft over three years is not alot, especially when you consider the rate its competitors are growing. AirAsia already has three times that num
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