2 January 2014
The 6th largest LCC carrier in Asia Pacific is buying the Philippine unit of Singapore-based Tiger Airways, an official of the Transport Ministry confirmed today.
Transport Secretary Joseph Emilio Abaya confirmed the buyout offered by Cebu Pacific.
On the negotiating table is the majority share of Southeast Asia Airlines (SEAIR), operator of Tiger Airways Philippines headed by Tomas B. Lopez. The remaining 40% share is owned by Roar Aviation II Pte Ltd. of Singapore, the holding unit of Tiger Airways.
The negotiation sale when completed will be the second dual-brand
strategy implemented by Tiger Airways after successfully negotiating
similar deals with Virgin Australia.
The consolidation would see both airlines working together in slot assignments and/or reallocation of flight entitlements to maximize their operations at Ninoy Aquino International Airport.
Cebu Pacific operates from Terminal 3 while Tiger Airways operate at Terminal 4.
Tigerair Philippines operates a fleet of 5 Airbus A320 aircraft.
Meanwhile, Singapore Airlines has acquired a further 7.3% interest in Tiger Airways Holdings, parent company of Tiger airways, increasing its stake from 32.7% to 40%. Cebu Pacific's fleet is maintained by Singapore Airlines subsidiary SIA Engineering.
The consolidation would see both airlines working together in slot assignments and/or reallocation of flight entitlements to maximize their operations at Ninoy Aquino International Airport.
Cebu Pacific operates from Terminal 3 while Tiger Airways operate at Terminal 4.
Tigerair Philippines operates a fleet of 5 Airbus A320 aircraft.
Meanwhile, Singapore Airlines has acquired a further 7.3% interest in Tiger Airways Holdings, parent company of Tiger airways, increasing its stake from 32.7% to 40%. Cebu Pacific's fleet is maintained by Singapore Airlines subsidiary SIA Engineering.
There is delay in the negotiation because 5J wants to have full control of the airline, or a 100% buyout of both the interest of the Lopez Group and their Singaporean counterpart.
ReplyDeleteThe Tiger Airways group however have different plans altogether.
For god's sake 5j, paki ayos muna ang ground to aircraft services niyo. Very poor. Sabagay, low cost kayo and you guys just keep on copying other top lccs.
Delete5j have good future ahead, but i hope they get abit more classy feeling for passangers. Eventhoug we dont like them,we still keep coming back... get some high density seats so passangers can enjoy abit more freedom. At the moment im not satisfied
ReplyDelete5J services will remains as it is..since they follow the LCC model..unless they will copy the strategy of norwegian..a hybrid LCC..
DeleteCebu Pacific has acquired 100 percent of Tigerair Philippines for $15 million US dollars, a disclosure to the Philippine Stock Exchange said.
ReplyDeleteThe buyout effectively closes the Tiger airways affiliate in the Philippines.