Scoot, Nok Airlines agree on structure of joint venture

Scoot and Nok Airlines are taking one key step forward in their plans to set up NokScoot, a low-cost carrier based in Bangkok.

Singapore Airlines said in a statement on Thursday that the two partners have agreed on the final structure of the joint-venture airline. This follows the memorandum of understanding with Nok Airlines which was signed in December 2013.

Scoot is a wholly-owned subsidiary of Singapore Airlines.

Scoot and Nok Air will ultimately each hold a 49-per cent shareholding of the joint venture company.

The final 2 per cent will be held by Pueannammitr Co, a company formed by the management of Nok Air.

The partners plan to set up the joint venture airline by way of acquiring an existing company, Pete Air Co, which holds an air operator's licence.

The joint venture company will be subsequently renamed NokScoot Airlines Co.

The partners have agreed to invest an initial aggregate amount of S$80 million in the joint venture.

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Tigerair, Scoot in JVs to set up Taiwan, Thai budget airlines

Taiwan's China Airlines and Singapore's Tiger Airways plan to set up a Taiwan-based budget carrier.

This will allow Taiwan's biggest airline to tap into Asia's low-cost aviation market.

Tigerair, in which Singapore Airlines owns about a third stake, will also extend its presence into the new and largely untapped markets of Taiwan, Japan, and Korea.

In a media release on Monday, Tiger said the new carrier will operate under the Tigerair brand and be independently managed. Tigerair's website will be the main sales and distribution platform.

Tigerair will initially hold 10 per cent of the start-up, while China Airlines will hold a 90 per cent stake.

The start-up will have a registered capital of T$2 billion (about S$85 million).

The partner carriers will be submitting applications for regulatory approvals.

Tiger Airways also announced an agreement with Indian budget carrier SpiceJet, allowing both to connect passengers on each other's flights.

Tigerair currently flies to Hyderabad in India and the agreement with SpiceJet will allow the two to connect 14 Indian cities from there.

Tiger Airways and Scoot -- the long-haul, low-cost unit of Singapore Airlines -- also agreed to work together on joint operations, and sales and marketing on parallel routes.

In a separate announcement, Scoot said the company plans to establish a new Bangkok-based low-cost carrier with Thailand's Nok Airlines.

The new airline will be named NokScoot and will be based at Don Mueang International Airport. It will operate wide-body aircraft on medium and long-haul international routes.

Nok will have up to a 51 per cent stake in the new carrier and Scoot will hold a 49 per cent stake.

The initial investment will be THB2 billion (about S$80 million).

The establishment of the new airline is subject to regulatory approvals.

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