Taiwanese flag carrier China Airlines pumps up to $68 million of equity into its low-cost subsidiary Tigerair Taiwan. China Airlines owes 69.45% of Tigerair Taiwan. The airline stated that the purpose of this injection is “long-term equity investment”.
Tigerair Taiwan started operating as a low-cost carrier in 2014. The main hub of the airline is at Taoyuan International Airport. Tigerair Taiwan has a fleet of 11 aircraft, which only consist of A320 Airbuses.
Initially, China Airlines held 80% shares of Tigerair Taiwan, while Budget Aviation Holdings and Mandarin Airlines were sharing the rest 20 percent. However, when Tigerair Singapore turned into Scoot, China Airlines bought Budget Aviation Holdings’s 10% stakes. So, for now, China Airlines owes 90% shares of Tigerair Taiwan.
According to 6 August filing to the Taiwan Stock Exchange, “The investment is pending a follow-up resolution of Tigerair Taiwan’s board of directors to confirm the number of shares to be issued and the price per share”.
