SINGAPORE Airlines (SIA) has established a holding company to own and manage both its budget airline subsidiaries, Scoot and Tiger Airways.
The news have come on the back of Tiger Airways delisting from the SGX and on the formation of the Value Alliance, an eight-member LCC alliance including members Scoot and Tiger Airways.
The newly-formed holding company, Budget Aviation Holdings, will be helmed by Lee Lik Hsin, who has led Tiger Airways since May 2014. He will manage both budget carriers as the new company’s CEO.
Goh Choon Phong, SIA’s CEO, will be chairman of Budget Aviation Holdings and its management will include senior staff from Scoot, Tiger Airways and SIA.
Key functions of both airlines such as sales, marketing, IT, planning and operations will also be shared or integrated.
Goh said: “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.”
Meanwhile, Campbell Wilson, Scoot’s CEO since the LCC’s launch in 2012, will be returning to the SIA group in a senior position.
SIA took full ownership of Tiger Airways following a general offer that closed on March 4, 2016.
