TAIPEI (CNA) — Budget airline Tigerair Taiwan will lease eight Airbus A320neo jets and buy another seven, which will be delivered from 2021, its parent company, China Airlines (CAL) said Friday.
Following CAL’s own new order of 25 A321neo aircraft in May, the carrier said, Tigerair Taiwan will spend US$729.75 million to acquire the 15 narrow-body planes.
The airline will also develop new routes to meet growing market demand, it said. In addition, CAL is slated to launch its first-phase initial public offering (IPO) of Tigerair Taiwan shares in the fourth quarter of 2020.
Currently, CAL holds 90 percent of Tigerair Taiwan shares, with the remaining 10 percent going to its affiliate, Mandarin Airlines.
Last year, Tigerair Taiwan chalked up NT$1 billion (US$32 million) in profit, translating into an earnings per share of NT$4.98, making it the most profitable unit under CAL.
Tigerair Taiwan, established in December 2013, operates 11 A320 planes, with Japanese routes absorbing 80 percent of its capacity.
The only Taiwanese low-cost carrier, the airline operates 29 international routes to 22 destinations from Taiwan’s Taoyuan, Taichung and Kaohsiung airports.
Both CAL and Tigerair Taiwan will complete their separate contracts for Airbus jets purchases by the end of this year, the airlines said.
By Lee Hsin-Yin