Published on : Thursday, March 20, 2014
Tigerair and Cebu Pacific have completed the transaction announced two months ago, with Tigerair divesting its 40% stake in Tigerair Philippines to Cebu Pacific as part of the strategic alliance between the two airlines.
The wide- ranging alliance will enable both parties to leverage their strengths and collaborate in international and domestic air routes from the Philippines, creating the largest budget airline network between the Philippines and South East Asia. The long term partnership will enable Tigerair to tap on Cebu Pacific’s extensive network in the Philippines and North Asia, while Cebu Pacific will be able to extend their network to include Australia and India. Using interlines arrangements, both parties will be able to increase flight frequencies and jointly sell and market their routes.
Group CEO of Tigerair, Mr Koay Peng Yen said, “I am delighted that both parties are making good progress on the strategic alliance with the completion of transaction. We aim to set a new direction for budget airline partnerships that will enhance the convenience and experience of our customers.”
President and CEO of Cebu Pacific, Mr. Lance Gokongwei said, “The strength of the alliance lies in our ability to offer our trademark lowest fares to the largest low cost network to the region. The alliance gives us an opportunity to serve new markets, like India and Australia, as we expand our route network with Tigerair.”
Upon completion of the transaction, Tigerair Philippines will continue to operate under the Tigerair brand for the time being. Both Cebu Pacific and Tigerair websites will also be used as sales and distribution platform to market all routes operated by them. Both parties are actively working together to upgrade their websites to facilitate the cross- booking of flights.
Subject to approval by the Competition Commission of Singapore (“the Commission”), the interline partners will also be able to jointly operate common routes between Singapore and the Philippines, thus providing even more travel options for customers. Both parties are currently co-operating on the application to the Commission to further strengthen the partnership.
Under the agreement, Tigerair Philippines has returned two A319s to Tigerair, while Cebu Pacific has entered into a short-term aircraft lease agreement with Tigerair to allow Tigerair Philippines to continue to use three A320 aircraft.