Both low cost carriers have joined forces creating what is reportedly Asia’s largest budget airline network using hubs from the Philippines and Singapore in an aviation industry seeing consolidation.
Cebu Air said it is acquiring in full the local unit of Singaporean low cost carrier Tiger Airways for $15-million (around P665 million) financed mainly via internally generated cash.
Cebu Air will buy Tiger Airways’ 40 per cent in Tigerair Philippines and 60 percent held by the Singapore-based airline’s local partners. The formal announcement was made by chief executives of both airlines, Cebu Pacific Lance Gokongwei and Koay Peng Yen of the Tiger Airways group.
The alliance will mean jointly operating common routes between Singapore and the Philippines as both carriers jointly sell and market their routes using codeshare and interline arrangements effectively expanding network coverage. The move follows similar consolidations in the local aviation market, with AirAsia and ZestAir forming a similar strategic alliance in early last year.