SIA full takeover of budget carrier Tigerair

Singapore Airlines (SIA) said there are no plans for a full takeover of budget carrier Tigerair, but it does not rule out the possibility of such a move in the future.


SIA full takeover of budget carrier Tigerair


Singapore Airlines (SIA) said there are no plans for a full takeover of budget carrier Tigerair, but it does not rule out the possibility of such a move in the future. SIA, which owns around 40 per cent of Tigerair, will be injecting up to S$140 million (US$111 million) in the loss-making budget carrier which will ultimately see SIA’s stake rise to about 55 per cent. Singapore Airlines’ share acquisition is set to raise SG$140million in capital for Tigerair’s coffers. In September, Tigerair posted its biggest ever net loss of SG$182.4million for its fiscal second quarter ended September.

Tigerair sold its stake in an unprofitable joint venture in the Philippines to Cebu Pacific in January and its Indonesian joint venture, Tigerair Mandala ceased operating in July this year. Tigerair also sold a 60 per cent stake in its Australian unit to Virgin Australia in April 2013.