Tiger Airways, the budget unit of Singapore Airlines, plans to launch services in September, three months ahead of schedule and despite surging oil prices, the carrier's chief executive said on Monday.
Tiger, a venture between Singapore Air and the founder of Irish discount airline Ryanair, will be the second budget carrier to fly from Singapore's Changi Airport after Singapore's ValuAir.
Changi is Asia's sixth-busiest airport after Tokyo Haneda, Bangkok, Hong Kong, Tokyo Narita and Beijing.
Tiger Airways, which secured state approval on Monday to begin flights, is the only airline so far which has committed to Singapore's planned low-cost terminal, Asia's first dedicated terminal for budget carriers that will be ready by 2006.
"We have no issues with the way oil prices are rising. We will manage," Tiger chief executive Patrick Gan told a news briefing.
Tiger had originally planned to begin flights in the December quarter. The airline has said it expects to become profitable within the first year of operations.
Four airlines, including Australian carrier Qantas, have expressed interest in setting up budget carrier operations in Singapore.
Tiger plans up to 10 destinations in the first year, rising to 15 in the second.
Gan said Tiger Airways would not follow its parent in imposing a fuel surcharge, but would hedge its fuel requirements. He did not elaborate on the extent of its hedging program.
Gan said Tiger, which is 49 percent-owned by Singapore Air, had taken delivery of its second 180 seat Airbus A320 and expected to receive another two A320s by the end of the year, and planned to add four more in both 2005 and 2006.
