Tiger Airways (J7X.SG) hits new all-time high of $2.09 in early trade, last +1.5% at $2.08, on broad market advance, budget carrier’s latest tie-up with Thai Airways (THAI.TH) to form new low-fare airline, reports Dow Jones.

Based in Bangkok, Thai Tiger Airways will start operations in 1Q11, offering international, domestic flights within five-hour flying radius from Suvarnabhumi International Airport. Tiger will own 49% of new carrier; no financial details, fleet size disclosed.

“This is good news to Tiger Airways, in our opinion, as a new hub in Bangkok will extend the reach of its networks,” says Royal Bank of Scotland, which has Hold call with $1.95 target; “however, we are not clear about how this new venture will cooperate with the existing low-cost airline owned by Thai Airways, or indeed how Thai Airways will coordinate its own network carrier’s operations with the new low-cost carrier subsidiary.”

Orderbook quotes suggest shares may test $2.10.