Ryanair has joined a partnership between Singapore Airlines (SIA) and Singapore government investment arm Temasek Holdings to set up a budget carrier.
The new airline, known as Tiger Airways, will fly to destinations in Southeast Asia
from Changi Airport in the second half of 2004.
SIA said it will take a 49 per cent stake while Indigo Partners LLC, the aviation partnership of Mr David Bonderman and Mr Bill Franke and Irelandia Investments, the Ryan family's investment vehicle are the other partners in Tiger Airways, SIA said.
"Singapore Airlines and Temasek will own a majority of the new airline, but Tiger will be separately certificated and operated independently by a team specially recruited for the low cost airline," SIA said in a statement.
"Tiger has engaged Charlie Clifton, former director of operations at Ryanair, to establish the base in Singapore and to set up outstations throughout South East Asia over the coming months," it added.
In a speech to staff, SIA chief executive officer Chew Choon Seng said the capital structure for the new airline is being determined and it will have borrowings.
AFP