SINGAPORE (Dec 14): Singapore Airlines Group subsidiary Budget Aviation Holdings, which owns and manages SIA’s low-cost carriers Tigerair and Scoot, on Wednesday announced that it is selling its 10% stake in Tigerair Taiwan to China Airlines.
“Notwithstanding the divestment of Tigerair Taiwan, we will maintain an active presence in Taiwan with the combined network of Scoot and Tigerair,” says Budget Aviation Holdings CEO Lee Lik Hsin.
This comes after Budget Aviation Holdings announced in November that Tigerair will be integrated into the Scoot brand and operate under a single operating licence.
While the terms of the divestment are confidential, Budget Aviation Holdings says Tigerair Taiwan will cease to use the Tigerair website as its sales and distribution platform within 12 months of the divestment as part of the agreement.
The divestment is expected to conclude by 1Q17.
In addition to the divestment, Budget Aviation Holdings says Tigerair has re-negotiated the brand franchise agreement with Tigerair Taiwan. It has also separately re-negotiated the brand franchise agreement with Tigerair Australia.
Shares of Singapore Airlines closed 4 cents lower at S$9.76 on Wednesday.