Budget Aviation Holdings

Last updated
Budget Aviation Holdings Pte Ltd
Private
Industry Airline
Headquarters Singapore , Singapore
Key people
Goh Choon Phong (Chairman)
Lee Lik Hsin (CEO)
Parent Singapore Airlines
Subsidiaries Scoot (100%)

Budget Aviation Holdings is a Singapore-based holding company for a low-cost carrier operating in the Asia-Pacific region, consisting of Scoot. [1]

A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies.

Low-cost carrier airline that generally has lower fares and fewer comforts

A low-cost carrier or low-cost airline is an airline that is operated with an especially high emphasis on minimizing operating costs and without some of the traditional services and amenities provided in the fare, resulting in lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge extra fees – such as for carry-on baggage. As of July 2014, the world's largest low-cost carrier is Southwest Airlines, which operates in the United States and some surrounding areas.

Scoot Singaporean low-cost airline

Scoot Tigerair Pte Ltd, operating as Scoot, is a Singaporean low-cost airline owned by Singapore Airlines through its subsidiary Budget Aviation Holdings. It launched flights in June 2012 on medium and long-haul routes from Singapore, predominantly to China and India. Initially, Scoot's fleet consisted of Boeing 777 aircraft obtained from Singapore Airlines. The airline began to transition its fleet to Boeing 787 Dreamliner aircraft from 2015. On 25 July 2017, Tigerair was officially merged into Scoot using Tigerair's air operator's certificate (AOC) but retaining the 'Scoot' brand. With the change of AOC, the airline's IATA code was changed from TZ to TR, and its ICAO code was changed from SCO to TGW, previously used by Tigerair. Its head office is at Singapore Changi Airport.

The holding company was formed on 18 May 2016 to allow for easier management of the airline subsidiaries following the delisting of Tiger Airways from the Singapore stock exchange. [2]

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Tigerair budget airline

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Tigerair Mandala airline

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Tigerair Australia airline from Australia

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References

  1. "Singapore Air Forms New Company to Manage Two Budget Carriers". Bloomberg. Retrieved 21 May 2016.
  2. "SIA ESTABLISHES HOLDING COMPANY FOR SCOOT AND TIGER AIRWAYS" (Press release). 18 May 2016. Retrieved 19 May 2016.