Proposed Strategic Alliance between Cebu Air, Inc. and Tiger Airways Singapore Pte. Ltd.

Notifying Parties:

Cebu Air, Inc. and Tiger Airways Singapore Pte. Ltd.   

Notifying Date:

12 September 2014

Summary of transaction:

The parties to the agreement are:

(i)     Cebu Air, Inc. (“Cebu Pacific”); and

(ii)    Tiger Airways Singapore Pte. Ltd. (“Tigerair Singapore”),

(collectively, the “Parties”).

The Parties have entered into a Strategic Alliance on 7 January 2014 (the “Strategic Alliance Agreement”). The Strategic Alliance Agreement provides for the Parties to, among others:

(i)     jointly operate common routes between Singapore and the Philippines, and other markets that may emerge, on a metal-neutral basis;

(ii)    jointly sell and market common and non-common routes using codeshare or interline arrangements; and

(iii)   cooperate in relation to sales and marketing, distribution, airport operations and ground handling, scheduling, pricing, service policies, innovation, procurement and other matters to improve the overall quality of service offered to passengers on their respective operations and to reduce cost.

(the “Strategic Alliance”).

The Parties have submitted that the Strategic Alliance is expected to result in significant consumer and economic benefits, and efficiencies. These include:

(i)    improved scheduling of flights, including to offer a better spread of scheduled flight timings on overlapping routes;

(ii)    improved connectivity and more integrated product offerings across the Parties’ existing networks, including via Singapore, and improved scheduling on such routes;

(iii)    expansion of the Parties’ existing networks and services through commencing operations on new routes; and

(iv)    strengthening Singapore’s status and competitiveness as an air hub with improved connectivity across the Parties’ networks.

The Strategic Alliance relates to the provision of air passenger transport services. The scope of the Strategic Alliance will comprise of all services operated by the Parties between Singapore and Philippines.

Cebu Pacific currently operates flights on the following routes between Singapore and the Philippines:

(a)    between Singapore and Cebu;

(b)    between Singapore and Clark;

(c)    between Singapore and Iloilo; and

(d)    between Singapore and Manila.

Cebu Pacific does not operate any flights to Singapore, other than the above.

Tigerair Singapore currently operates flights on the following routes between Singapore and the Philippines:

(a)    between Singapore and Cebu;

(b)    between Singapore and Clark;

(c)    between Singapore and Kalibo;  and

(d)    between Singapore and Manila.

The Parties overlap on the following routes involving Singapore:

(a)    between Singapore and Cebu;

(b)    between Singapore and Clark; and

(c)    between Singapore and Manila.

Decision:

On 21 September 2015, CCS cleared the revised Strategic Alliance Agreement following revisions made to the level of cooperation between the Parties in relation to certain routes between Singapore and the Philippines.

Read Media Release

Read Grounds of Decision.