Tiger Airways announced (04-Jun-2012) it finalised a sale and purchase agreement to acquire 40% of Southeast Asian Airlines (SEAir) for USD7 million “less liabilities to be confirmed in a due diligence review”. The stake will be held through Tiger’s wholly owned subsidiary Roar Aviation. Tiger Airways CEO Chin Yau Seng said, “We are pleased to welcome a new Cub to our family and look forward to nurturing its growth with our Filipino business partners. The investment in SEAir is in-line with our strategy to develop the business into a pan-Asian one, one that will enable us to leverage on the strength of our Singapore base and scale up the size of our business across the region”. This investment is Tiger’s second joint venture in Asia, following its acquisition of a 33% stake in Indonesia’s Mandala Airlines in Jan-2012. SEAir currently operates two A319s leased from Tiger and plans to add three A320s to its fleet within 2012 with the launch of new routes. [more - original PR - Tiger Airways] [more - original PR - Tiger Airways - II]
Tiger Airways acquires 40% of Southeast Asian Airlines for USD7m
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Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
Southeast Asia should continue to experience rapid growth in 2017 and beyond. Vietnam and Myanmar will likely again lead the pack in 2017, joined by Malaysia. The Philippines should experience growth of approximately 10% for the third consecutive year, also putting it towards the top of the pack.
However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.
Southeast Asia Fleet Outlook:
Southeast Asia, along with the Middle East, are the only two regions with as nearly as many aircraft on order as in the active fleet. Southeast Asian airlines currently have nearly 1700 aircraft on order compared to an active fleet of approximately 1800 aircraft.