Singapore Airlines (SQ, Singapore Changi) and its proposed acquisition of an additional 15% stake in Tigerair (Singapore Changi) has been given the greenlight by the Competition Commission of Singapore (CCS).

In its review, the CCS said the proposed tie-up between the two carriers would not significantly impact competition on the 41 routes where they currently compete. In addition, the regulator noted that the transaction will not infringe the country's Competition Act as the budget carrier would likely have to close should the stake acquisition not go ahead.

Singapore Airlines plans to increase its stake in the struggling LCC to 55% with options to increase that shareholding through a rights issue acquisition due later on. The sale is set to generate SGD140million (USD110million) in capital to help shore up Tigerair's finances.

The Singaporean national carrier has said it is planning to further integrate Tigerair's regional budget operations into those of Singapore Airlines' longhaul budget subsidiary, Scoot (TR, Singapore Changi).