Cebu Pacific to purchase Tigerair’s Philippine stake

The Philippines’ largest low cost carrier (LCC), Cebu Pacific, has entered into a strategic alliance with Tigerair, which will see it take over the Singaporebased airline’s 40 per cent stake in Tigerair Philippines – the Manila-based carrier formerly known a SEAir for US$15 million, pending approval from Philippine authorities.


Cebu Pacific to purchase Tigerair’s Philippine stake


The Philippines’ largest low cost carrier (LCC), Cebu Pacific, has entered into a strategic alliance with Tigerair, which will see it take over the Singaporebased airline’s 40 per cent stake in Tigerair Philippines – the Manila-based carrier formerly known a SEAir for US$15 million, pending approval from Philippine authorities. Industry analysts say the deal was in a large part driven by the desire to acquire Tigerair’s landing slots in Manila.

Tigerair Philippines operates out of Clark and Manila, with a fleet of 48 aircraft. It operates an average of 102 flights per week with five aircraft to 12 domestic and international destinations. Cebu Pacific meantime operates an average of 2,200 flights per week with 48 aircraft to 24 international and 33 Philippine cities in its network. From January – September this year, Cebu Pacific’s profit plunged 71 per cent primarily due to foreign exchange losses. Net income stood at PHP664.1 million (US$14.7 million) for the nine month period from P2.27 billion in the same period of 2012.

Tigerair and Cebu Pacific will align their schedules and routes and in addition, the two carriers will coordinate their schedules and cross-sell each other’s flights on both domestic and international routes, including those between the Philippines and Singapore. The move forms part of Tigerair’s new strategy of forming regional alliances. Last month it joined forces with SpiceJet in India and China Airlines in Taiwan, adding to its existing presences in Singapore, Indonesia, Australia and the Philippines.