TIGER AIRWAYS HOLDINGS LIMITED
Media Release 13 August 2012
TIGER AIRWAYS COMPLETES INVESTMENT IN SOUTHEAST ASIAN
AIRLINES IN THE PHILIPPINES
Tiger Airways Holdings Limited ("Tiger") today
completed the transaction to acquire a 40% stake in Southeast
Asian Airlines Inc ("SEAir") for US$2.5 million.
The purchase price of US$7 million, which was agreed with the
sellers, has been reduced by the liabilities determined in a
due diligence review. The investment will be held through
Tiger's wholly owned subsidiary Roar Aviation II Pte.
Ltd.
Tiger is committed to supporting the working capital needs of
SEAir, including pre-existing liabilities, with shareholder
loans of up to US$40 million. The loan tenure will be five
years.
"Together with our Philippine business partners, our
immediate focus will be on scaling up the business through
network expansion, building a strong customer base, and
establishing the airline's brand presence," said Tiger Group
Chief Executive Officer Koay Peng Yen, "The Philippines has
tremendous growth potential and we welcome the opportunity to
be at the heart of it."
The remaining Filipino shareholders, including individual
investors, collectively own a 60%
share of SEAir.
The investment in SEAir is Tiger's second joint venture.
Tiger acquired a 33% stake in Mandala Airlines in Indonesia
in January 2012. The acquisitions are in line with Tiger's
strategy to expand and develop its business in the
region.
SEAir will adopt Tiger's business model. This includes
offering value fares to domestic and international
destinations within a five-hour flying radius of the
Philippines.
Singapore Company Registration No: 200701866W 1 of 2
From 31 July 2012, SEAir has progressively launched domestic
flights from Manila's Ninoy Aquino International Airport to
the following destinations - Cebu, Davao, Tacloban, Iloilo,
Puerto Princesa, Kalibo (Boracay) and Bacolod. SEAir also
operates flights from Clark International Airport to Bangkok,
Hong Kong, Kota Kinabalu, Singapore and Kalibo (Boracay).
The airline currently has two A319s and three A320s. More
aircraft will be progressively added to build SEAir's
network.
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ABOUT TIGER AIRWAYS
Tiger Airways is one of Asia's leading low cost carriers.
Established in September 2004, the Airline has steadily grown
its fleet to 31 A320 aircraft with an average age of under
three years. It has another two A319s and six A320s operated
by associate airlines Mandala in Indonesia, and SEAir in the
Philippines.
Operating from Singapore and Australia, Tiger Airways'
network extends to over 30 destinations across 12 countries
in the Asia Pacific region.
Tiger Airways is
committed to offering customers great value fares and
friendly service while maintaining the highest standards of
safety, security and reliability. For more information,
please visit www.tigerairways.com .
Singapore Company Registration No: 200701866W 2 of 2
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