Singapore Airlines' budget subsidiaries Scoot (TR, Singapore Changi) and Tigerair (Singapore Changi) have announced plans to cooperate on flights from Singapore Changi to Guangzhou, China with effect from January 16, 2016.

Under the deal, Scoot will assume one of Tigerair's two daily return flights operating it with a B787 as opposed to the current A320-200. This, the carriers say, will better match capacity to demand.

"The partnership agreements on these routes are structured to ensure win-win for both sides, and Tigerair can also redeploy resources for expansion to new destinations," Lee Lik Hsin, CEO of Tigerair, said. “With Scoot operating one tranche of Tigerair's service to Guangzhou with their larger aircraft, we jointly serve the market more efficiently. We are also finalising a similar arrangement for another route."