Singapore's Tiger Airways to buy 20 Airbus A320s

SINGAPORE: Singapore budget carrier Tiger Airways said on Tuesday it had exercised an option to buy 20 Airbus A320 aircraft worth $1.3 billion.   

European manufacturer Airbus had said in October that Tiger signed a contract for 30 medium-range, single-aisle A320s, with 20 more on option. The 20 extra aircraft are for delivery by 2016, Tiger Airways chief executive Tony Davis said.   

An Airbus spokesperson in Singapore could not be immediately reached for comment. The budget carrier has a fleet of nine A320s now and will have 70 by 2016 as it continues to expand its operations in the Asia-Pacific region.   

Tiger on Monday announced the appointment of Steve Burns, previously of British-based easyJet, as its new chief operating officer to help implement regional expansion plans. In November, Tiger said it had signed a letter of cooperation with Incheon city in South Korea to set up a new budget carrier based in that country.   

Tiger also began Australian domestic operations from a Melbourne base in November, and is among the low-cost carriers granted rights to fly the Singapore-Kuala Lumpur route from February. The airline is 49 percent owned by national carrier Singapore Airlines.  

Southeast Asia's low-cost sector has boomed since the birth of Malaysia-based AirAsia, almost six years ago, spawned a host of imitators.