New Delhi: Even as the ailing SpiceJet tries to turn the corner, Singapore-based low-cost carrier Tigerair has terminated its three-year inter-line agreement with the domestic airline in less than a year. The tie-up ended earlier this month, mainly because the revenue target could not be met, Tigerair’s director for sales and marketing, Teh Yikchuan, told Business Standard.
Tigerair, which had signed the agreement with SpiceJet in December 2013, sent a termination letter to the latter in December last year, with a 30-day notice period. Singapore Airlines, a 49 per cent stakeholder in India’s newest airline, Vistara, is also the largest shareholder in Tigerair with a 56 per cent stake.
“The SpiceJet inter-line has expired. The numbers are not exactly what we expected. There were not as many connecting passengers as we had originally hoped for, so we decided not to continue with it after about a year. There is a cost to maintaining the agreement; it did not make any sense for us,” Yikchuan said.
29/01/15 Roudra Bhattacharya/Business Standard
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Tigerair, which had signed the agreement with SpiceJet in December 2013, sent a termination letter to the latter in December last year, with a 30-day notice period. Singapore Airlines, a 49 per cent stakeholder in India’s newest airline, Vistara, is also the largest shareholder in Tigerair with a 56 per cent stake.
“The SpiceJet inter-line has expired. The numbers are not exactly what we expected. There were not as many connecting passengers as we had originally hoped for, so we decided not to continue with it after about a year. There is a cost to maintaining the agreement; it did not make any sense for us,” Yikchuan said.
29/01/15 Roudra Bhattacharya/Business Standard
