Singapore Airlines (SQ, Singapore Changi) says it is planning to further integrate Tigerair's regional budget operations into those of Singapore Airlines' longhaul budget subsidiary, Scoot (TR, Singapore Changi). Late last month, Tigerair announced the Singaporean national carrier would increase its stake in the struggling LCC to 55% with options to increase that shareholding through a rights issue acquisition due later on.
During a media briefing for its second-quarter earnings, Singapore Airlines CEO Goh Choon Phong said his airline is considering boosting route interconnectivity between Tigerair and Scoot, which currently stands at just below 5%.
According to the Channel NewsAsia, other areas of integration could include ground handling where both operations would benefit from enhanced economies of scale.
Singapore Airlines' share acquisition is set to raise SGD140million (USD110million) in capital for Tigerair's coffers. In September, the LCC posted its biggest ever net loss of SGD182.4million (USD145.6million) for its fiscal second quarter ended September.
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