Cebu Pacific ready to snap up Tigerair

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The buyout of Togerair by Cebu Pacific creates the biggest network of flights in Southeast Asia.

TigerairCEBU Pacific Air is seeking to acquire Tigerair Philippines, the local arm of Singapore-based Tiger Airways Holdings Ltd., and that the country’s leading low-cost carrier is just waiting for the go-ahead from the commercial aviation regulator, according to reports.

The reports said Civil Aeronautics Board executive director Carmelo Arcilla had confirmed that Cebu Pacific had filed an application to acquire 100% of Tigerair and that a decision may be out in the next two weeks.

Arcilla said the proposed acquisition is still under evaluation and would need to pass legal and regulatory processes.

“We are looking at its effect on routes, traffic and slots. There is also the legal side,” Arcilla said, adding that the proposal was made only last month.

Transport Secretary Joseph Emilio Abaya confirmed that Cebu Pacific chief executive officer Lance Gokongwei called him a month ago regarding the proposed acquisition.

Tigerair chief executive officer Olivia Ramos, meanwhile, said she is not privy to the discussions.

Tiger Airways’ unit, Roar Aviation II Pte Ltd, acquired a 40% stake in Southeast Asian Airlines in 2011 from its existing foreign shareholders for $7 million while the remaining 60% stake is owned by Filipino shareholders.

The carrier then renamed itself as Tiger SEAIR. Last May, the airline rebranded to Tigerair Philippines.

Photo from www.facebook.com/tigerairaustralia