MANILA, Philippines - Singapore’s Tiger Airways has announced plans to increase its stake in local leisure carrier Southeast Asian Airlines (Seair).
In a disclosure to the Singapore Stock Exchange, the low-cost carrier of Singapore said it would amend the 2011 term sheet to hike Tiger Airways Holdings Ltd.’s stake in Seair from 32.5 percent to 40 percent.
In February last year, Tiger purchased a 32.5-percent stake in Seair for $6 million. The additional 7.5-percent stake is worth $7 million, it said.
“The revised term sheet is to replace the first term sheet that was signed on February 24, 2011. The parties will now proceed to finalize the definitive sale and purchase agreement for the stake,” the Singapore airline said.
Seair was earlier banned by the Civil Aeronautics Board (CAB) to mount its Cebu and Davao flights because Philippine Airlines, Cebu Pacific and Airphil Express had complained this would merit a violation of cabotage rights.
The law grants the right of transporting goods and passengers between two or more points within the Philippines only to local airlines, according to CAB rules.
CAB later lifted the ban and approved the new marketing agreement between Tiger and Seair.