Bangkok, 2 August 2010 .  Thai Airways International Public Company Limited (THAI) and Tiger Airways Holdings Limited today announced the signing of a Memorandum of Understanding to form a new low fare airline called Thai Tiger Airways Private Limited.  The new airline will operate the same low fare, low cost model as the other airlines in the Tiger Airways Group, and is expected to commence operations in the first quarter of 2011, pending regulatory approvals.

Based in Bangkok, Thai Tiger will operate international and domestic flights out of Suvarnabhumi International Airport offering short-haul, point-to-point services within a 5-hour flying radius. The route network and further information on the corporate structure will be announced in due course.

Mr. Piyasvasti Amranand, THAI President , said, "We are pleased to partner with Tiger Airways in establishing Thailand's newest airline, Thai Tiger.  With its disciplined approach to the low-cost model, Tiger Airways has proven that it has the right approach to competing effectively in the growing low fare travel market in Asia.  For people in Thailand and the region, our launching Thai Tiger will mean that in addition to the global network of premium services operated by THAI, more people will have access to new low fare, point to point services, giving a big boost to tourism and employment.  THAI and a Thai entity will collectively hold 51% while Tiger Airways will hold 49%. The Thai Tiger Board will consist of three nominees from THAI and two nominees from Tiger Airways, with the Chairmanship being held by THAI.

“We believe that this move will provide revenue opportunities for THAI and allow THAI to be more competitive in the region with the anticipated growth in the low cost market as a result of continued ASEAN air liberalization policies by 2015 which we expect will lead to growth in air travel in the Asian market. Thai Tiger will offer an entirely different line of products to that offered by THAI.”

Mr. Tony Davis, Tiger Airways Group President and CEO , said, "Thai Tiger will be well positioned to offer low fares to even more parts of the Asia-Pacific region from its base in Asia's tourism leader, Thailand.  Bangkok is a key gateway to the whole of South East Asia and from its base at Suvarnabhumi Airport, Thai Tiger will be well positioned to also serve destinations in North Asia and the Indian sub-continent.  Spreading our paw-print means greater economies of scale for Tiger Airways, which in turn enables us to lower costs and fares even further."

Tony Davis and Ryanasia principal Declan Ryan will sit on the Board of Thai Tiger as nominees for Tiger Airways.  Declan Ryan was one of the founding shareholders of both Tiger Airways and Ryanair.

Thai Tiger will operate a consistent Airbus A320 aircraft fleet in line with other airlines in the Tiger Airways Group.

About Thai Airways International Public Company Limited

Thai Airways International Public Company Limited is the national carrier of the Kingdom of Thailand.  Founded in 1960, it operates domestic, regional and intercontinental flights. THAI flies to 69 destinations in 34 countries around the world. The company is 51.03% owned by the Royal Thai Government through the Ministry of Finance. THAI has over 27,285 employees and a total of 91 aircraft in its fleet.  THAI's vision is First Choice Carrier with Touches of Thai.

About Tiger Airways Holdings Limited

(Company Registration Number: 200701866W)

(incorporated with limited liability in the Republic of Singapore on 1 February 2007)

Established in September 2004, Tiger Airways now operates a fleet of 19 Airbus A320-family aircraft and is committed to increasing its fleet size to 68 by December 2015. The airline currently operates flights to 37 destinations in 11 countries and territories across Asia and Australia.  For more information, please visit http://www.tigerairways.com

¹ The initial public offering of Tiger Airways Holdings Limited was sponsored by Citigroup Global Markets Singapore Pte. Ltd. and Morgan Stanley Asia (Singapore) Pte. (the 'Joint Issue Managers').

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