In a disclosure to the Singapore Stock Exchange, Joseph Yuvaraj Pillay, Tiger Airways chairman, said the Philippines' Southeast Asian Airlines (Seair) was a fledgling carrier of modest capability whereas Indonesia's Mandala was a resuscitated carrier that had seen two earlier incarnations.
"Reinvigorating those carriers in a competitive market is a daunting business. They have sustained losses, and we expect it will be some time before they are able to turn the corner," Pillay said.
"Indonesia and the Philippines are the largest two countries in Asean, where we believe our destiny lies. We have to expand beyond the shores of Singapore in order to safeguard the future of the Tiger Group," he added.
Tiger Airways' unit, Roar Aviation II Pte Ltd, earlier acquired a 40 percent stake in Seair for $7 million from the Philippine carrier's existing foreign shareholders.
Seair has a fleet of 2 A319s and 3 A320s, serving four international routes and one domestic route out of Clark, and seven domestic routes out of Manila
To grow its Philippine market, Tiger Airways had said it will leverage on its brand.
Seair earlier asked the Civil Aeronautics Board (CAB) for an endorsement to the Securities and Exchange Commission (SEC), allowing the Philippine carrier to do business under the name and style of Tiger Airways.
Tiger Airways had announced plans to raise $297 million to finance its expansion in Asia including the Philippines.-Interaksyon (March 24, 2013)
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