Singapore Airlines proposed takeover of Tigerair a scene changing strategic move for the SIA Group

The Singapore Airlines (SIA) Group plans to advance its multi-brand strategy by fully taking over and integrating short-haul LCC Tigerair. The proposed acquisition of the remaining 44% stake in Tigerair is a long overdue move which will improve the group's overall position, in particular the outlook for long-haul LCC subsidiary Scoot.

SIA should have opted for a bigger role in Tigerair when the LCC was established in 2003, to fly in the following year. SIA also repeatedly opted against taking over Tigerair in recent years although such a move became increasingly inevitable as Tigerair struggled and the launch of Scoot meant that strategically SIA could no longer afford to continue playing a passive role. Better late than never. And it is not too late. The amalgam will give SIA far cleaner operating and partnership options than it had previously.

SIA still faces challenges as competition continues to intensify, both regionally and in key long haul markets. The 6-Nov-2015 offer to take over the remaining stake in Tigerair is just one of several components in a still evolving group strategy aimed at improving SIA's long-term outlook.