- POSTED: 08 Jan 2014 13:52
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Singapore budget carrier Tigerair is divesting its 40 per cent interest in loss-making Tigerair Philippines to Cebu Pacific for US$7 million.
SINGAPORE: Singapore budget carrier Tigerair is divesting its 40 per cent interest in loss-making Tigerair Philippines to Cebu Pacific for US$7 million (S$8.9 million).
In a filing with the Singapore Exchange on Wednesday, a joint statement by both the carriers said this is part of their plans for a wide-ranging strategic alliance.
Tigerair and Cebu Pacific intend to collaborate commercially and operationally on international and domestic air routes from the Philippines, thereby creating the biggest network of flights to the region.
Subject to regulatory approval, the two partners will jointly operate common routes between Singapore and the Philippines.
By combining resources, Cebu Pacific will be able to provide services to high growth markets including Australia and India.
Tigerair will be able to fly more passengers to additional cities in Cebu Pacific's network in the Philippines and North Asia. This arrangement will allow both airlines to deploy capital more efficiently.
Following the acquisition of the 40 per cent stake in Tigerair Philippines, Cebu Pacific will have full ownership of the airline.