Cebu Pacific Air (CEB) has completed a deal to acquire Tigerair’s 40% stake in Tigerair Philippines.
The transaction, which was first announced two months ago, will see CEB buy Singapore-based Tigerair’s entire interest in its Manila-based unit. The two carriers will also form a new alliance, using interline agreements to cross-sell each others’ flights.
The new long-term partnership is intended to allow Tigerair to tap into CEB’s network in the Philippines and North Asia, while allowing CEB to take advantage of Tigerair’s routes into Australia and India.
“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,” said Tigerair’s group CEO, Koay Peng Yen.
After the transaction is completed, Tigerair Philippines will continue to operate under the Tigerair brand, at least in the short-term. The CEB and Tigerair websites will also be used to sell all routes operated by the two carriers.
Tigerair Philippines has also returned two Airbus A319 aircraft to Tigerair, while CEB has entered into a short-term in agreement with Tigerair to allow Tigerair Philippines to continue to use three A320 aircraft.