News
Tigerair sells Tigerair Taiwan holding; Far Eastern to acquire TransAsia?
December 16th 2016
Roar Aviation III Pte Ltd, a wholly-owned subsidiary of Tiger Airways Holdings Limited (Tigerair), has decided to sell its 10% equity in Tigerair Taiwan to China Airlines (CAL) after reported losses that have exceeded $35 million since 2014. Read More » Tigerair Taiwan will cease to use the Tigerair website as its sales and distribution platform within 12 months of the sale. Further conditions have not been disclosed.
“Notwithstanding the divestment of Tigerair Taiwan, we will maintain an active presence in Taiwan with the combined network of Scoot and Tigerair,” said Lee Lik Hsin, CEO of Budget Aviation Holdings (BAH), which owns and manages Tigerair and Scoot.
The divestment follows a recent announcement by BAH of its intention to operate Tigerair and Scoot under a common “Scoot” brand and a common operating license by the second half of 2017.
The parties involved said the divestment is not expected to have any material financial impact on the consolidated net tangible assets or earnings per share of the Singapore Airlines group of companies.
Following the transaction, flag carrier CAL will hold 90% of Tigerair Taiwan, with the remaining 10% in the hands of CAL subsidiary, Mandarin Airlines. Tigerair Taiwan is the only LCC in Taiwan still flying after TransAsia Airways’ V Air closed on October 1. Parent TransAsia followed V Air’s fate several weeks later.
Taipei Songshan-based Far Eastern Air Transport has emerged as a likely buyer for the defunct carrier. Far Eastern chairman, Fenno Chang, this week told The China Post he was “80% certain we will be able to take over TransAsia”, following advanced discussions with lenders and other relevant parties. Far Eastern currently has a fleet of eight MD-82/-83s.
