SINGAPORE : Singapore budget carrier Tiger Airways said Thursday it will lease two new Airbus A320 planes from the commercial aviation services arm of US conglomerate General Electric.

Under an agreement, GE Commercial Aviation Services (GECAS) will buy the two aircraft from Tiger upon delivery from Airbus in 2009 and lease them back to the carrier for 12 years, the airline said in a statement.

Tiger has previously signed similar sale and leaseback agreements with other financial groups.

The carrier's chief executive, Tony Davis, said the agreement with GECAS "is a strong endorsement" of Tiger's low-fare business model.

Tiger, 49 percent owned by Singapore Airlines, offers low-cost flights to destinations in China, Australia and Southeast Asia. - AFP/ch