Singapore greenlights CEB-Tiger air alliance

MANILA, Philippines - The Competition Commission of Singapore (CCS) has given the green light to the strategic alliance agreement between low cost carriers Cebu Pacific and Tiger Airways Holdings (Tigerair).

In a statement, Cebu Pacific and Tigerair said they welcome the approval given by the CCS as this would strengthen the cooperation between the two airlines.

The approval of the alliance follows a thorough review conducted by the CCS.

“CEB’s strategic alliance with Tigerair allows both carriers to leverage on each other’s strengths and complementary networks. CEB offers the largest and most extensive network in the Philippines and Tigerair has an established network in South East Asia and India.  With the clearance from CCS, our customers can enjoy more options and seamless travel connections,” Cebu Pacific president and chief executive officer Lance Gokongwei said.

Cebu Pacific’s passengers, particularly those from the Philippines, will be able to enjoy seamless connections onto Tigerair’s established network in South East Asia and India.

Tigerair’s customers, meanwhile, will be able to select from Cebu Pacific’s extensive network in the Philippines and North Asia. 

Aside from providing customers seamless connection, the CCS approval gives opportunity for greater coordination on sales and schedules on relevant routes which in turn would offer customers more flight options at good value. 

“Tigerair has already been working closely with Cebu Pacific in areas such as the interline agreement.  Going forward, we will look in greater depth on how we can combine both our resources to provide even greater connectivity, convenience and value to our customers,” Tigerair chief executive officer Lee Lik Hsin said.

Last year, Cebu Pacific entered into a $15 million share purchase agreement and strategic alliance with Tigerair to create the biggest network of flights in the region.

Cebu Pacific spent $7 million to acquire the 40 percent share of Tiger Airways Singapore Pte. Ltd., while $8 million was used for the purchase of the 60 percent owned by Filipino businessmen in Tigerair Philippines.

Cebu Pacific is a unit of flagship JG Summit Holdings, Inc. The carrier has a 55 strong fleet and operates on 63 destinations.

Tigerair, a subsidiary of Singapore Airlines Ltd. operates flights to 38 destinations across Asia.