Posted on: 08 January 2014 by Mark Howells
Tigerair and Cebu Pacific have entered into a strategic alliance to collaborate commercially and operationally on international and domestic air routes between Singapore and the Philippines.
The strategic alliance will allow both carriers to harness synergies and efficiencies to enhance their network coverage, flight frequencies and customer service, and jointly market their routes using codeshare and interline arrangements.
Group CEO of Tigerair, Koay Peng Yen, commented, “Tigerair and Cebu Pacific share a vision for both airlines to join forces and create the largest budget airline network between Asia and the Philippines. This partnership with Cebu Pacific is consistent with our asset-light strategy, and builds upon our other alliances. We look forward to achieving greater cost savings from the coordinated operations while providing more travel options and greater convenience for our customers.”
Lance Gokongwei, president and CEO of Cebu Pacific, remarked the alliance will allow both carriers to build on their extensive networks spanning from North Asia, ASEAN, Australia, India and, with Cebu Pacific’s long-haul fleet, all the way to the Middle East. “Our customers can expect an even wider range of travel options, and seamless travel connections while enjoying our trademark low fares,” he said.
To enhance the integration of operations, each carrier will brand itself as partner of the other airline, while Tigerair Philippines will initially continue to operate under the Tigerair brand. Both Tigerair and Cebu Pacific websites will be used as sales and distribution platforms to market all routes operated by both airlines. The carriers also expect to collaborate on other common destinations in Asia.
As part of the strategic alliance, Cebu Pacific is to acquire 100% ownership of Tigerair Philippines, including the 40% stake of Tigerair. Tigerair Philippines currently operates an average of 118 flights per week with five aircraft to 11 domestic and international destinations, from its bases in Manila and Clark.
Cebu Pacific currently operates an average of 2,200 flights per week with 48 aircraft to 24 international and 33 Philippine cities in its network. By combining their resources, Cebu Pacific will be able to provide services to high growth markets including Australia and India.
Tigerair will be able to fly more passengers to additional cities in Cebu Pacific’s extensive network in the Philippines and North Asia. The arrangement is designed to allow both airlines to deploy capital more efficiently.