MANILA (AFP) - Singapore budget airline Tiger Airways has paid US$7 million (S$8.9 million) for a 40 per cent stake in low-cost Philippine carrier South East Asian Airlines, SEAir said on Thursday.
Tiger bought out previous foreign investors in a cash deal that should boost the fortunes of tiny SEAir, the Philippine firm's chief operating officer, Patrick Tan, said.
The stake is the maximum any foreign airline can take under the Philippines' constitution. Mr Tan added that after the purchase SEAir would sell seats on its flights through the Tiger website.
SEAir operates seven aircraft, including two Airbus A319 planes leased from Tiger that the Filipino carrier uses to serve Singapore, Hong Kong, Kota Kinabalu and Bangko