Singapore Airlines (SQ, Singapore Changi) has announced its Tiger Airways Holdings unit will exit its Tigerair Taiwan (IT, Taipei Taoyuan) joint-venture following an agreement to sell its 10% stake in the LCC to China Airlines (CI, Taipei Taoyuan). The transaction, whose value was not revealed, is expected to close by the first quarter of next year.

As part of the agreement, Tigerair said it has renegotiated its brand franchise agreement with Tigerair Taiwan. However, Tigerair Taiwan will cease to use the Tigerair website as its sales and distribution platform, within twelve months of the divestment.

Tigerair said the divestment follows a recent announcement by its parent holding firm, Budget Aviation Holdings, of its intention to phase out the Tigerair brand in favour of Scoot (TR, Singapore Changi) by the second half of 2017.

The move comes after China Airlines expressed strong dissatisfaction with the terms of its partnership with Tigerair. Under the terms of their original agreement, the Singaporean carrier, despite owning just 10% of Tigerair Taiwan's shares, enjoyed a total veto of its operations.

China Airlines chairman Ho Nuan-hsuan later labelled the situation "humiliating" adding that an internal investigation into how such an agreement was brokered would be launched.

The consolidation of ownership will also allow China Airlines to determine, unfettered, the future of Tigerair Taiwan given its less than stellar financial performance since its launch in September 2014.