Singapore’s Tiger Airways Objects to Qantas-Jetstar Asia Tie-Up

Sunday, 19 May, 2006 0

Tiger Airways Pte, the low-fare carrier owned by Singapore Airlines Ltd., said it has asked the Australian authorities not to approve a request from Qantas Airways Ltd. to cooperate with Jetstar Asia.

Qantas is seeking approval from the Australian Competition and Consumer Commission to work together with Singapore-based Jetstar Asia, which is 49 percent owned by the Australian carrier, Tiger Airways said in an e-mailed statement today.

Tiger Airways was responding to a report by the Straits Times today that Orangestar, the holding company of Jetstar Asia and Valuair Ltd., signed an agreement on April 21 that would allow Qantas to run the two Singapore-based airlines.

The airline “has asked not to approve the request by Qantas to engage in such activities or at least ensure that appropriate safeguards are imposed to ensure that airlines such as Tiger Airways remain able to compete effectively” against the combined entity, Tiger Airways said in the statement.

It is also concerned that the arrangement “will work against consumer interests and could stifle competition,” the carrier said.

Tiger will ask the Singaporean authorities to ensure air rights are not awarded to Jetstar Asia, should it co-operate with Qantas, it said.

Jetstar Asia in July last year agreed to merge with discount airline Valuair to help it compete against at least 18 low-fare carriers flying in Southeast Asia, targeting a market of 550 million people.

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Graham Muldoon

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