Singapore Airlines announced it will merge the management of low cost subsidiaries Tigerair and Scoot.
SIA has created a holding company called Budget Aviation Holdings which will oversee operations for the two carriers.
Tigerair Singapore chief executive Lee Lik Hsin becomes the CEO of Budget Aviation Holdings, while Scoot CEO Campbell Wilson will move to parent Singapore Airlines later this year as acting senior vice president of sales and marketing.
The creation of the holding company comes after SIA recently bought all remaining shares of Tigerair to give it full control.
"We launched our general offer so that we could fully realise commercial and operational synergies between Scoot and Tigerair. We are confident that Lik Hsin and his team are up to the task," said SIA CEO Goh Choon Phong in a statement.
"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."
The two companies will share key functions such as sales, marketing, and operations but it won’t lead to job losses, Singapore Air said.
