Singapore budget airline Tigerair said on Wednesday it would sell its 40 per cent stake in its Philippine associate, Tigerair Philippines, to Manila-based low-cost carrier Cebu Pacific for US$7 million (S$8.9 million).
This will give Cebu Pacific 100 per cent ownership of Tigerair Philippines, which operates an average of 118 flights a week with five aircraft.
The sale is part of a strategic alliance between Tigerair and Cebu Pacific, in which the two carriers plan to jointly operate common routes between Singapore and the Philippines, the companies said in a statement.
The two airlines will brand themselves as partners, and Tigerair Philippines will initially continue to operate under the Tigerair brand after the sale is completed. Each carrier will also be able to use the other's website to market its own routes.
Media reports had earlier said the two carriers were in talks over this transaction.