Tiger Airways (Tiger Airways Holdings Limited) on June 4 finalized the sale and purchase agreement to acquire a 40% stake in South East Asian Airlines (SEAir), Inc. This stake will be acquired from existing foreign shareholders at $7 million (US), less liabilities to be confirmed in a due diligence review. The investment will be held through Tiger’s wholly owned subsidiary, Roar Aviation II Pte. Ltd.
The investment in SEAir is Tiger’s second such joint venture in Asia. Tiger acquired a 33% stake in
Mandala Airlines (Jakarta) of Indonesia in January 2012.
SEAir currently operates two Airbus A319 aircraft leased from Tiger Airways under the Tiger Partner Airline
program. In addition, there are plans to expand the fleet to five aircraft within this financial year with the addition of three A320 aircraft.
SEAir will be introducing new routes to its network. The airline will adopt Tiger’s business model. This includes offering attractive fares to international and domestic destinations within a five-hour flying radius from the Philippines.
SEAIR-South East Asian Airlines (Manila) and Tigers Airways (Singapore) have received a setback from the Civil Aeronautics Board (CAB) of the Philippines. The CAB has issued a cease and desist order stopping SEAIR and Tiger Airways from adding domestic Manila-Cebu and Manila-Davao flights due to start on May 27. The CAB claimed advertisements for the new flights used the Tiger Airways brand. The CAB has taken the position that domestic routes should be reserved for Philippine-owned carriers.
On December 16, 2010 SEAIR and Tiger Airways entered into an agreement. Under the agreement, Tiger Airways leased two Airbus A319s to SEAIR. SEAIR is operating the two aircraft from Clark in an all-white condition with SEAIR titles. The aircraft are flown by SEAIR’s crews. Seats on the flights are marketed by Tiger for SEAIR.
SEAIR started operating the Airbus A319s on the Clark-Singapore route on December 16, 2010 and is due to start Clark-Macau on May 27, 2011.
However other Philippine airlines including Air Philippines, Philippine Airlines, Cebu Pacific and Zest Airways have protested the arrangement.
Tiger Airways (Singapore) has taken a 32.5 percent share of partner airline SEAIR (South East Asian Airlines) (Manila-Clark). The relationship will be expanded on March 14 when SEAIR adds the Clark-Hong Kong route using Tiger Airways’ Airbus A320s.
Copyright Photo: Michael B. Ing. Please click on the photo for the full details of this growing relationship.