Cebu Pacific Air Buys Tiger Airways For $15 Million
Cebu Pacific Air, the second largest airline in the Philippines, Tigerair Philippines - a smaller local airline that struggled to be profitable. Combined, the two airlines will form Asia's largest budget airline network out of the Philippines.
Via the strategic alliance, both airlines will jointly operate common routes between Singapore and the Philippines, and both carriers will sell and market their routes using a codeshare arrangement. The alliance is quite similar to what AirAsia and ZestAir did in early 2014, except they actually formed a brand new airline called AirAsia Zest.
"As part of the strategic alliance, Cebu Pacific will acquire 100-percent ownership of Tigerair Philippines, including the 40-percent stake of Tigerair," the company said in a statement. "This strategic alliance will allow both Cebu Pacific and Tigerair to leverage on our extensive networks spanning from North Asia, ASEAN, Australia, India, all the way to the Middle East."
Cebu Pacific also said that each carrier will retain its own branding while communicating that both are partners. Tigerair Philippines, meanwhile, will only continue to operate under the Tigerair brand at the outset.
About Tigerair Philippines
Tigerair Philippines currently operates an average of 118 flights per week with just five aircraft to 11 domestic and international destinations. They fly from Manila International airport in Metro Manila, and Clark International airport in the Pampanga province. For more details, visit www.tigerair.com/ph/en
About Cebu Pacific Air
Cebu Pacific Air uses nearly 50 aircraft to make about 2,200 flights per week to 24 international and 33 local cities in its network. They are the second largest airline in the Philippines, and the only airline on the Philippine Stock Market. For more details, visit www.cebupacificair.com