Ryan gets Asia base with launch of Tiger

FOUNDER of low-cost operator Ryanair Tony Ryan, looking for a slice of Asia's booming no-frills sector, has thrown his weight and his family's private funds behind a startup linked with Singapore Airlines.

Tiger Airways will start services next month with flights from Singapore to three Thai destinations - the capital Bangkok, the resort island of Phuket and the southern city of Hadyai.

Ryan's vehicle, Irelandia Investments, holds 16% of Tiger and chief executive Patrick Gan said its heavyweight support is a vital prop for the new carrier.

"We are funded by prominent investors and are confident that what we have will see us through the medium term," said Gan, announcing details of opening routes and pricing policy.

Gan did not break down the value of the Ryan family's stake, but said he hopes to put Tiger into the black within two years, and is ready to see off the competition.

Alongside Ryan, Tiger is backed by Singapore Airlines, which has 49% of the venture, as well as its longstanding interest in Virgin Atlantic Airways.

Singapore's powerful state investment fund, Temasek Holdings, which is also in a low-cost airline partnership with Australian carrier Qantas - has 11% and Indigo Partners, a fund linked to US aviation investors David Bonderman and Bill Franke, has 24%.

Gan said he wasn't fazed by the prospect of a price war, nor rampant oil prices, which have been driven this month to a series of record highs skirting US$50 a barrel.

"We are ready for any price war," said Gan. "We have our own business-plan contingencies in place, and are confident of being successful."

He is targetting 10 routes by the end of the first year of operations, and a further five by the end of the second.

It won't say yet which countries are on its hit list except fast- growing China. But Tiger is certain to face a baptism of fire when it does start flying.

The principal low-cost adversary is Malaysia's AirAsia, which flies plenty of domestic routes, and has already decided to branch out internationally.

Its Thai subsidiary, Thai AirAsia, serves Singapore from Bangkok, so the two will go head-to-head. In addition, independent Valuair, flies out of Singapore, and there are other lowcost rivals from Indonesia and Thailand.

There is also the unnamed venture by Qantas Airways, in which British Airways has a holding. Its Singaporebased no-frills offshoot will probably be named Jetstar Asia and will start flying later this year.

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