Source: Skift
Tigerair Taiwan is leasing capacity on other carriers' routes rather than purchasing aircraft, inverting the traditional airline business model. The airline captures margin on routes where demand exists but capital constraints or slot availability make operating flights uneconomical—functioning as a retailer of flight inventory instead of a producer. If the model scales across low-cost carriers, it could fragment the airline industry further by turning route networks into commodities traded between operators, reducing barriers to entry for new carriers, and compressing margins across the industry.