Tiger Airways Holdings Limited on Tuesday said its has completed a 40-percent equity purchase in low South East Asian Airlines Inc. (SEAIR) for $7 million.
Sixty percent of SEAIR’s equity stays in the hands of its Filipino shareholders, according to Tiger Air, saying its wholly owned subsidiary Roar Aviation II Pte. Ltd. consummated the deal with SEAIR.
Newly appointed SEAIR chief executive Patrick Tan said the deal gives his company the opportunity to register strong growth.
“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 Tan.
In an interview with reporters, Tiger Air CEO Koay Peng Yen said
SEAIR intends to pursue the expansion the Philippine-based airline.
“Together with our Philippine business partners, our immediate focus will be on scaling up the business through network expansion, building a strong customer base, and establishing the brand presence of SEAIR,” Yen added.
The Philippines has tremendous growth potential and “We welcome the opportunity to be at the heart of it,” he said.
Former SEAIR president Avelino Zapanta would continue to serve the company as senior advisor to the airline. He was instrumental in bringing the transaction with Tiger Air to fruition.
SEAIR is the Singaporean airline’s second joint venture investment after acquiring 33-percent equity in Indonesia’s Mandala Airlines last January.
The acquisitions are part of its expansion strategy in the region, according to Tiger Air, saying SEAIR would adopt the Tiger business model that includes offering value fares for domestic and international destinations within a five-hour flying radius of Manila and Clark in Pampanga.
SEAIR, which has been in operating in the Philippines for 17 years, flies to four regional and nine domestic destinations. It owns a fleet of two Airbus A319s and three A320s.
Established in 2004, Tiger Air is 32.84-percent owned by Singapore Airlines Ltd. and 7.37 percent by Dahlia Investments Pte. Ltd. Its fleet of 34 aircraft – mostly Airbus A319s and A320s – are spread in Singapore, Australia, Indonesia, and Philippines. — VS/OMG