Ryanair founder Dr Tony Ryan and the airline's chairman, Mr David Bonderman, are to back a new low-cost airline in Asia.
Tiger Airlines, which will be based in Singapore, will begin operations in autumn 2004, offering low fares to destinations including Malaysia, Indonesia, India, Thailand and Vietnam.
The airline will be majority owned by Singapore Airlines and the Singapore government through a company called Temasek Holdings. Dr Ryan and his family will take a 14 per cent stake in the airline through their investment vehicle, Irelandia Investments. Mr Bonderman is joining Mr Bill Franke through his aviation partnership, Indigo Partners, to take a 24 per cent shareholding in Tiger Airways. The amount of their investment has not been disclosed.
The airline will operate under a separate certificate and will be run independently from Singapore Airlines. The airline has appointed former Ryanair director of operations Mr Charlie Clifton to establish its base in Singapore and to set up outstations throughout south-east Asia.
Mr Clifton said yesterday there was no connection between Ryanair or its chief executive, Mr Michael O'Leary, and the new airline.
It plans to launch a high frequency of flights from Singapore at fares of up to 50 per cent less than those currently charged by Asian airlines.
Tiger Airways will be Singapore's first low-cost airline and aims to have four to 10 aircraft and more than 100 staff.
Mr Clifton said the airline intended to adopt parts of the Ryanair business model and believed there was huge potential for success in the region.
"We feel if we replicate the best bits of the Ryanair model we can be even more successful in Singapore," he said.
Announcing the new airline yesterday, Dr Ryan said: "Singapore has always been at the forefront of the aviation industry. I am confident that the new airline will deliver the benefits that low- cost carriers can bring in terms of tourism and job creation, not only in Singapore, but also to the other countries it serves."
Mr Chew Choon Seng, chief executive of Singapore Airlines, said the investment recognised the potential for low-cost travel in that part of the world.
Dr Ryan and his family founded Ryanair in 1986. The family currently holds 8.5 per cent of Ryanair and Dr Ryan owns 1 per cent. Mr Bonderman also holds a 1 per cent stake in Ryanair.
Tiger Airways will be competing with Malaysia's Air Asia and Australia's Virgin Blue which both operate in the region. Qantas Airways has said it would launch a low-cost airline next May to fend off competition from other budget operators.
