Tigerair, Cebu Pacific get nod for strategic alliance

Singapore

THE Competition Commission of Singapore (CCS) has approved a strategic alliance agreement between Tiger Airways and Cebu Pacific, which will allow the two budget carriers to work more closely together for the Singapore and Philippine markets.

Tigerair and Cebu Pacific also have an existing interline partnership and the greenlight from the CCS will now enable them to build upon it. Among the benefits that travellers can look forward to is better connectivity across both carriers' networks.

For instance, Cebu Pacific passengers - especially those flying from the Philippines - will be able to tap more seamless connections onto Tigerair's network, which includes South-east Asia and India.

Meanwhile, Tigerair's passengers will be able to leverage on Cebu Pacific's network spanning the Philippines and North Asia.

In addition, the two carriers will be able to work together on sales and schedules for certain routes, which will mean more flight options at potentially better prices.

Tiger previously owned a 40 per cent stake in Cebu Pacific's Cebgo, which was previously known as Tigerair Philippines. The Singapore-based budget carrier ended up divesting its stake in the bleeding cub to Cebu Pacific after Tigerair Philippines failed to make headway in the market.

Tiger has been striving to turn itself around over the last two years or so by divesting or shutting down its overseas loss-making ventures in Australia, Philippines and Indonesia, as well as turning its attention to improving Tigerair Singapore's operations. Tiger, which is a subsidiary of Singapore Airlines, also has a strategic partnership with SIA's medium/long haul budget subsidiary, Scoot.

Chief executive Lee Lik Hsin, said: "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."

President and chief of Cebu Pacific Lance Gokongwei added: "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."