Tiger Airways hikes Seair stake

Manila Standard Today
April 18, 2012
by Lailany P. Gomez

Budget carrier Tiger Airways Holdings Ltd. of Singapore said it will increase its holdings in Philippine-based South East Asian Airlines to 40 percent from an initial 32.5 percent.

Tiger Airways said Tuesday in a disclosure to the Singapore Stock Exchange that it signed a revised agreement to purchase a 40-percent stake in Seair from existing foreign investors for $7 million, or about P299.271 million.

The Singapore-based low-cost carrier said the revised agreement replaced the first one signed on February 24 last year.

“The parties will now proceed to finalize the definitive sale and purchase agreement for the stake,” Tiger said.

Tiger in 2011 bought a 32.5-percent stake in Seair for $6 million as part of a  plan to expand domestic and international operations.

Meanwhile, the Civil Aeronautics Board approved the new marketing agreement between Tiger and Seair that would make the way for the two budget airlines to fly to Cebu and Davao.

Seair and Tiger had planned to mount flights to Cebu and Davao starting July 1 last year, using two brand-new 180-seater A320s leased from the Singaporean carrier.

Similarly, Seair earlier asked the regulator grant license to newly formed unit Seair International Inc.