TIGER Airways Holdings has finally completed its sale and purchase agreement to acquire a 40 per cent stake in Southeast Asian Airlines (SEAir) for US$7 million (TTG Asia e-Daily, May 21, 2012).
The investment will be held through Tiger’s wholly owned subsidiary, Roar Aviation II, and is its second such joint venture in Asia.
Tiger acquired a 33 per cent stake in Mandala Airlines in January 2012, allowing the Indonesian carrier to restart flight operations in April (TTG Asia e-Daily, March 28, 2012), more than a year after it was forced to suspend services due to financial difficulties.
“The investment in SEAir is in-line with our strategy to develop the business into a pan-Asian one, one that will enable us to leverage on the strength of our Singapore base and scale up the size of our business across the region,” said Tiger Airways CEO, Chin Yau Seng.
“The Philippines is a large country with more than 7,000 islands and a population of over 90 million, not including the 11 million working and living abroad. There is enormous potential to develop the domestic and international air travel (sectors),” he added.
Currently operating two Airbus A319 aircraft leased from Tiger, SEAir offers flights to international and domestic destinations within a five-hour flying radius from the Philippines. Overseas destinations include Singapore, Hong Kong, Bangkok and Kota Kinabalu.
SEAir is planning to expand its fleet to five planes within this financial year, through the addition of three A320 aircraft.