Singapore's Tiger Airways now has one foot firmly in the Philippine
market's door following the completion of its purchase of a 40-per-cent stake
in local carrier Southeast Asian Airlines (SEAir).
Tiger becomes the second regional
giant with a substantial interest in an airline operating in the Philippines.
Earlier this year, AirAsia, which is 40-per-cent owned by Malaysia's AirAsia
Berhad, started domestic and international flights in the country.
The investment will be held
through Tiger's wholly owned subsidiary, Roar Aviation II Pte Ltd. The
remaining 60 per cent is owned by Filipino shareholders.
"This deal represents a
significant step forward for SEAir and will allow the airline to continue its
tremendous growth and job-creation drive for Filipinos, bringing increased
prosperity, highly-skilled jobs, and tourism to the country," said newly
appointed SEAir CEO Patrick Tan.
Tan replaced local airline
industry veteran Avelino Zapanta as the company's president. Zapanta used to
head flag carrier Philippine Airlines (PAL).
Tiger Group CEO Koay Peng Yen
said in a separate statement that the company would be "scaling up the
business through network expansion, building a strong customer base and
establishing the brand presence of SEAir".
"The Philippines has
tremendous growth potential and we welcome the opportunity to be at the heart
of it," he added.
The investment in SEAir is
Tiger's second joint venture. Tiger acquired a 33-per-cent stake in Mandala
Airlines in Indonesia in January 2012.
The acquisitions are part of
Tiger's strategy for expansion in the region.
SEAir will adopt the Tiger
business model, which includes offering value fares for domestic and
international destinations within a five-hour flying radius of Manila and
Clark, its current hubs.
In July and August 2012, SEAir
launched flights from Manila Domestic Airport, also known as Ninoy Aquino
International Airport (Naia) Terminal 4, to seven domestic destinations - Cebu,
Davao, Tacloban, Iloilo, Puerto Princesa, Kalibo (Boracay) and Bacolod.
SEAir also operates flights from
Clark International Airport to Bangkok, Hong Kong, Kota Kinabalu, Singapore and
Kalibo (Boracay).
The airline has two Airbus A319
and three Airbus A320 jets, which are all leased from Tiger. Prior to buying
into SEAir, Tiger had a co-marketing agreement with the local airline that
allowed the former to sell Tiger flights.
Philippine Daily Inquirer
Business & Investment Opportunities
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