SpiceJet Partners with Singapore Tigerair

Thursday, 2nd January 2014 at 04:42am

ust recently, SpiceJet has started its partnership with Tigerair, a budget carrier from Singapore. This partnership will allow both airlines to each other's tickets in addition to their own tickets.

The decision of the Indian government to relax its policy on FDI in September 2012 has spawned interests from foreign airlines. AirAsia Bhd, Etihad Airways and Singapore Airlines were the first three carriers who have responded favorably to the new amended law either through a joint venture or stake acquisition of the existing airline.

Lately, SpiceJet has inked an inter-line agreement with Tigerair, a low-cost carrier of Singapore. The agreement will enable both airlines sell each other's tickets in addition to their own tickets.

The announcement of the partnership between the two airlines pushed SpiceJet's share in the stock market by 7.64% apiece. It is also highly anticipated that the partnership will prosper into either stake purchase from Tigerair of SpiceJet or forming a joint venture to set up a new airline.

SpiceJet has reportedly been in talks with foreign-based airlines to sell a minority stake to augment its funds for its expansion program.

The SpiceJet-Tigerair alliance will pave the way to a smoother connection between Singapore and six Indian cities allowing passengers to have a seamless connection through any domestic destinations where both airlines operate.

Beginning January 1, 2014, travelers from any point in India via SpiceJet who have connecting flights onward to Singapore will have the chance to enjoy hassle-free connections through Hyderabad's Rajiv Gandhi International Airport.

The six major Indian airports where both airlines operate include Thiruvananthapuram's Trivandrum International Airport, Tiruchirapalli's Tiruchirapalli Airport, Kochi's Cochin International Airport, Hyderabad's Rajiv Gandhi International Airport, Chennai's Chennai International Airport and Bangalore's Bengaluru International Airport.

Travelers from domestic destinations where Tigerair doesn't have flights to Singapore will only need to take a SpiceJet flight to any of the six airports where Tigerair operates.

Starting January 31, 2014, travelers from Singapore who want to explore India will also have the chance to have a seamless connection via Tigerair flights.

According to SpiceJet's Sanjiv Kapoor, the partnership the airline is having with Tigerair is just a building block of something bigger that is to come. He also admitted that the airline is currently seeking viable commercial partnership with other foreign-based airlines, though he declined to give details.

Tigerair makes 43 weekly flights between Singapore and six Indian cities carrying with them approximately 45,000-50,000 passengers.

Earlier this month, the Singapore-based budget carrier signed a joint-venture partnership with Taiwan-based China Airlines to set up a new low-cost airline. It has also signed with Scoot, another budget carrier based in Singapore, an inter-line agreement to further its presence in the region and increase market share.

Hyderabad's Rajiv Gandhi International Airport will become the country's major gateway to Singapore for hundreds of thousands of Indian tourists who make up Singapore's fifth biggest market in 2012.

By: Pete Lee.