Tiger Airways Holdings said it will review its plan to set up a new low-fare venture with Thai Airways International Pcl. after delays in winning Thailand’s regulatory approval.
Thai Airways management informed the airline that there has been no progress in obtaining the approval for the venture, Tiger Air, part-owned by Singapore Airlines, said in a statement to the Singapore stock exchange today.
Tiger Air and Thai Airways announced the plan in August 2010 to form the new carrier amid rising demand for leisure travel in Asia. The venture, Thai Tiger Airways, which was scheduled to start operations in the first quarter of this year, was delayed after it failed to win the Thai government’s approval.
Tiger Air fell 1.6% to 90 Singapore cents in Singapore trading today before the shares were suspended, pending the release of an announcement. Thai Airways dropped 2.8% to 24.80 baht as of 11:25 a.m. in Bangkok, the biggest intraday decline since Sept. 12.
The agreement to set up the budget airline may lapse, Thai Airways Chairman Ampon Kittiampon said Sept. 16. Thai Airways will focus on the establishment of its wholly-owned low-cost carrier, he said.
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