Airline News
SIA not interested in Hong Kong Airlines
April 13th 2015
Singapore Airlines (SIA) has confirmed to This Week in Asia-Pacific Aviation that it is not interested in acquiring equity in HNA Group’s Hong Kong Airlines. Read More » "We are not in talks to buy any stake in Hong Kong Airlines," a SIA spokesman told us. Last week, The Wall Street Journal cited sources that said SIA was in talks to buy a minority stake in the Hong Kong-based short-haul carrier, as part of an effort to tap into China's booming travel market.
Another way SIA could gain a stronger foothold in Chinese second tier markets is through the acquisition of a stake in Jeju Air, itself destined for rapid expansion on the Mainland with a growing fleet and new services from South Korea. Jeju Air, which operates 18 B737-800 aircraft, is owned by the influential Korean Aekyung Group. The low-cost carrier is preparing for a 200 billion won ($180 million) initial public offering (IPO) in its fourth quarter.
Separately, the Competition Commission of Singapore has cleared a proposed joint venture between Boeing and SIA Engineering to offer maintenance, repair and overhaul services for Boeing aircraft to Singapore Airlines and other third-party customers in the south Asia-Pacific region. The U.S. manufacturer and SIA Engineering will own 51% and 49% of the proposed joint-venture company, respectively.
