Singapore Airlines (SQ, Singapore Changi) is in talks to acquire a stake in Jeju Air (7C, Jeju) a spokesman for the South Korean budget carrier has confirmed. The Singaporeans opened negotiations with Jeju Air and its parent Aekyung Group late last year though no definitive decisions have yet been taken.

"Singapore Airlines wishes to confirm that discussions have taken place on a possible equity investment in the airline. These discussions may not result in a transaction," the carrier said in a filing to the Singapore Stock Exchange. “Singapore Airlines will make further public announcements as necessary.”

Singapore Airlines maintains stakes in several Asia-Pacific operations including Vistara (Delhi International) in India and Virgin Australia (VA, Brisbane International) as well as in NokScoot (Bangkok Don Mueang) via its Scoot (TR, Singapore Changi) subsidiary.

Jeju Air is preparing for a last quarter IPO in the hopes of raising KRW200 billion (USD176 million) through the sale of a 20-30% stake in the carrier. Capital raised will be used to grow Jeju's China business through improved direct marketing and sales, starting in Beijing, and to acquire more aircraft.

Singapore Airlines has meanwhile retired the first of its A330-300s 9V-STJ (cn 1008) which has been withdrawn from the carrier's fleet on January 18.