Competition watchdog seeks feedback on SIA’s plan to boost Tigerair stake

SINGAPORE — The Competition Commission of Singapore (CCS) is seeking feedback on Singapore Airlines’ (SIA) proposed acquisition of additional shares in Tiger Airways (Tigerair).

CCS yesterday said it had received notification on the proposed deal a week ago from the two carriers.

SIA, the largest shareholder in loss-making Tigerair, plans to raise its stake in the budget carrier to about 55 per cent from 40 per cent. It would also buy up to S$140 million of a S$234 million rights issue, taking its stake as high as 71 per cent.

SIA’s proposed investment signals its resolve to persevere in the low-cost segment even after Tigerair had bowed out of three regional markets.

The flag carrier plans to have Tigerair cooperate more closely with its similarly loss-making medium- and long-haul budget airline Scoot, people familiar with the company’s strategy said. The aim is for a resource-sharing relationship akin to what SIA has with premium regional subsidiary SilkAir, they said.

The closing date for the submission of feedback is Nov 7.

Agencies