Singapore Airlines (SIA) has established a holding company to own and manage its low cost carriers (LCCs) Scoot and Tiger Airways (which operates as Tigerair) and pursue “deep integration” of the two entities. The announcement comes just days after the launch of Value Alliance by a group of eight Asia Pacific LCCs, including Scoot and Tigerair.
Lee Lik Hsin, who has led Tigerair since May 2014, will lead both budget airlines as CEO of the holding company, which has been registered as Budget Aviation Holdings Pte Ltd. Campbell Wilson, who has led Scoot as CEO since prior to its launch of operations in 2012, will be returning to SIA in a senior position.
SIA CEO Goh Choon Phong will be Chairman of Budget Aviation Holdings, and its management will include senior staff from Scoot, Tigerair and SIA. The holding company structure will allow for the integration and sharing of key functions, such as in sales and marketing, IT, planning and operations.
SIA took full ownership of Tigerair following a general offer that closed on 4th March. The process has now been completed with the recent delisting of the company from SGX-ST.
“We launched our general offer so that we could fully realise commercial and operational synergies between Scoot and Tigerair. We are confident that Lik Hsin and his team are up to the task,” said Mr Goh.