Singapore Airlines (SIA) has established a new holding company to own and manage budget airlines Scoot and Tiger Airways. It was announced by SIA on 18 May that the company, Budget Aviation Holdings, will encompass the two budget carriers.
Budget Aviation Holdings will be led by the previous CEO of Tigerair Mr Lee Lik Hsin, who had been with Tigerair since May 2014. Scoot and Tiger Airways will be able to be deeper integrated with each other and will share key functions in the areas of sales, marketing, IT and operations.
“There are many opportunities ahead for Scoot and Tigerair to work more closely together, which will provide new opportunities for the growth of both airlines for the benefit of our customers,” highlighted new CEO of Budget Aviation Holdings Mr Lee.
Scoot CEO Campbell Wilson will return to SIA in a senior management position while SIA CEO Goh Choon Phong will be Chairman of Budget Aviation Holdings.
Senior staff from SIA, Scoot and Tigerair will be involved in the holding company, said a statement by SIA.
“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,” said Mr Goh.