SINGAPORE: National carrier Singapore Airlines (SIA) has set up a holding company to own and manage two of its budget airlines Scoot and Tiger Airways, it announced on Wednesday (May 18).
Budget Aviation Holdings will be helmed by Mr Lee Lik Hsin, who has led Tigerair since May 2014. Scoot CEO Campbell Wilson is set to return to SIA in a senior position, the airline said.
SIA CEO Goh Choon Phong will be Chairman of Budget Aviation Holdings and its management will include senior staff from Scoot, Tigerair and SIA.
Said Mr Goh: “We launched our general offer so that we could fully realise commercial and operational synergies between Scoot and Tigerair. We are confident that (Lee) Lik Hsin and his team are up to the task.
“The holding company structure will drive a deep integration of our low-cost subsidiaries, which are important parts of our portfolio strategy in which we have investments in both the full-service and budget aspects of the airline business.”
Mr Goh also said the contributions Mr Wilson have made through his leadership of Scoot are “successfully developing its corporate culture, brand, route network and fleet, and bringing it to profitability in a short time”.
The establishment of the holding company comes after the delisting of Tiger Airways (which operates as Tigerair) from the Singapore Exchange. SIA took full ownership of Tigerair following a general offer that closed on Mar 4.
On Monday, eight Asia-Pacific budget airlines - including Scoot and Tigerair - formed the world’s largest low cost carrier alliance aimed at providing more destinations, routing options and greater convenience for customers.