Tiger Airways Holdings Limited completed (13-Aug-2012) the transaction to acquire a 40% stake in Southeast Asian Airlines Inc (SEAir) for USD2.5 million. The purchase price of USD7 million, which was agreed with the sellers, has been reduced by the liabilities determined in a due diligence review. The investment will be held through Tiger’s wholly-owned subsidiary Roar Aviation II Pte Ltd. Tiger stated it is committed to supporting the working capital needs of SEAir, including pre-existing liabilities, with shareholder loans of up to USD40 million. The loan tenure will be five years. Tiger Group CEO Koay Peng Yen said, “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 airline’s brand presence. The Philippines has tremendous growth potential and we welcome the opportunity to be at the heart of it.” The remaining Filipino shareholders, including individual investors, collectively own a 60% share of SEAir. The investment in SEAir is Tiger’s second JV. Tiger acquired a 33% stake in Mandala Airlines in Jan-2012. The acquisitions are in line with Tiger’s strategy to expand and develop its business in the region. The airline currently has two A319s and three A320s. More aircraft will be progressively added to build SEAir’s network. [more - original PR]
Tiger Airways completes transaction to acquire 40% of SEAir
You may also be interested in the following articles...
CAPA Asia Aviation Summit Day 1: Trump impact on aviation, long haul LCCs, future of Asian FSCs
The CAPA Asia Aviation Summit was held on 15/16-Nov-2016 at the Capella at Sentosa in Singapore. First off, BOC Aviation's Robert Martin and Indigo Partners' William Franke discussed the outlook for long haul LCCs, as well as the aviation implications from Donald Trump's election to US President. Malaysia Airlines CEO Peter Bellew gave a key presentation on the transformation of the airline and plans for its A380 fleet.
Panel discussions addressed the future of the full service airline model in Asia, the opportunities from big data, China's "One Belt, One Road" strategy, joint venture strategies, partnerships/alliances at LCCs.
Day one was capped off by a Gala Dinner with the CAPA Asia Aviation Awards for Excellence.
Singapore Airlines to launch Jakarta-Sydney, further intensifying SE Asia-Australia competition
Singapore Airlines (SIA) will launch services from Jakarta to Sydney in Nov-2016, resulting in new competition for rivals Garuda Indonesia and Australia’s Qantas Airways. SIA’s entrance on the Jakarta-Sydney route is a strategic move and highlights its desire to pursue new areas of growth.
The Indonesia-Australia market is a logical market for SIA as it seeks to diversify its business. Indonesia and Australia are already SIA’s two largest international markets and Garuda and Qantas are already among its biggest competitors.
Competition within Asia Pacific, including the Southeast Asia-Australia market, has been intensifying. In the current highly competitive and challenging environment airlines are constantly jockeying and exploring new options to improve their position.