Tiger Airways to buy eight Airbus A320

Less than a year after starting operations, Singapore-based no-frills air carrier Tiger Airways has announced that it would purchase eight Airbus A320 aircraft by, 2007, tripling its fleet to twelve planes.

It also said that it will add staff and routes and open joint-venture franchises away from its base of operations at Changi Airport.

The airline declared that its goal is to rival the Malaysia-based AirAsia. The expansion would cost over $500 million at regular prices, but some analysts think it likely that the airline will be able to get a discount from Airbus.

Tony Davis, the chief executive of Tiger Airways, said that the expansion would be financed largely from start-up funds, most of which he said are still available.

Singapore Airlines owns 49 percent of Tiger Airways. Temasek Holdings owns 11 percent, while the private investment firm of Tony Ryan, founder of RyanAir holds 16 percent of the airline, and a US businessman owns the other 24 percent.

In other airline news from Asia, Jetstar Asia, supported by Qantas Airways, and Singapore-based airline Valuair are talking about a possible merger.

Valuair has been flying since May 2004 and has expanded traditional low-cost airline services by offering longer routes and serving basic meals.

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