ABSTRACT
Many Asian countries have long-established national carriers, and some of those companies have a considerable international presence. Private investors bought a loss-making (Malaysian) company, and re-launched AirAsia; it claims to be the first low-cost airline in Asia. Following early successful growth in Malaysia, AirAsia joined with local investors in Thailand and in Indonesia, to launch Thai AirAsia and Indonesia AirAsia. Tiger Airways' founding shareholders were Singapore Airlines, Dahlia Investments Private Ltd, Indigo Partners LLC and Irelandia Investments. Singapore hosted the launch of no less than three budget carriers: Valuair in May, Tiger Airways in September, and Jetstar Asia in December. When the general financial crisis had severely damaged the financial position of the local carriers, the Indian government gave thought to relaxing the constraints on foreign investment in Indian airlines. The eventual granting of the AOP indicated that the earlier change of government policy did permit foreign investment in new airlines and allowing additional funding sources for incumbent airlines.
