China Airlines (CI, Taipei Taoyuan) chairman Ho Nuan-hsuan says a decision concerning the future of the carrier's Tigerair Taiwan (IT, Taipei Taoyuan) unit will be made by the end of this year.

Speaking to the Central News Agency, Ho said China Airlines may be forced to withdraw from the LCC should its bottom line fail to improve. He also noted that talks over a revised partnership plan with Tigerair (TR, Singapore Changi), which owns 10% of Tigerair Taiwan, would have to be negotiated.

He said that China Airlines is unhappy with the current joint-venture agreement given that the Singaporeans, despite owning just 10% of the carrier, have one board seat which gives them the power to veto major decisions.

Tigerair Taiwan's constitution also requires at least four of the five board members to be present to consider a decision while all five must agree in full for any decision to be passed.

Chairman Ho, who has been in his position since June, said he could not understand how such an "unreasonable" arrangement had been agreed to in the first place. He added that he would undertake a full review of all contracts as part of his tenure.

As with rival V air (ZV, Taipei Taoyuan), Ho said Tigerair Taiwan had racked up losses of NT$1.2 billion (US$38 million) in the two years it had been operational.