gb777
19th July 2005, 10:21
Tuesday July 19, 1:55 PM
Singapore's Jetstar, Valuair budget airlines agree to merge: report
Two of the three Singapore-based budget carriers have agreed to merge in what could be the first sign of consolidation in Southeast Asia's crowded low-cost airline industry, a report said.
Jetstar Asia, backed by Australian flag-carrier Qantas, and privately-owned Valuair have agreed to a merger just one week after talks appeared to have broken down, the Business Times said, citing sources.
The deal would call for the injection of more than 50 million Singapore dollars (30 million US) in fresh capital into the new entity largely to be provided by Qantas, which owns 49 percent of Jetstar Asia.
State-linked Singapore investment company Temasek Holdings, which owns 19 percent of Jetstar, could also put up fresh capital, the report said.
Shareholders of Valuair, including airline industry veteran Lim Chin Beng, Malaysia's Star Cruises and Asiatravel.com, will become minority shareholders in the merged company.
The deal, which came after the talks were called off last week over a disagreement on the shareholding structure, has yet to be finalised as it is subject to approval by shareholders from both parties, the report said.
Southeast Asia's fledgling low-fare airline industry has been under pressure to consolidate amid tough competition, soaring jet fuel costs and reluctance by governments to open up their domestic aviation sectors.
Singapore Airlines-backed Tiger Airways, the third budget carrier based in the city-state, has expressed confidence it will survive the competition.
http://sg.biz.yahoo.com/050719/1/3tkce.html
Singapore's Jetstar, Valuair budget airlines agree to merge: report
Two of the three Singapore-based budget carriers have agreed to merge in what could be the first sign of consolidation in Southeast Asia's crowded low-cost airline industry, a report said.
Jetstar Asia, backed by Australian flag-carrier Qantas, and privately-owned Valuair have agreed to a merger just one week after talks appeared to have broken down, the Business Times said, citing sources.
The deal would call for the injection of more than 50 million Singapore dollars (30 million US) in fresh capital into the new entity largely to be provided by Qantas, which owns 49 percent of Jetstar Asia.
State-linked Singapore investment company Temasek Holdings, which owns 19 percent of Jetstar, could also put up fresh capital, the report said.
Shareholders of Valuair, including airline industry veteran Lim Chin Beng, Malaysia's Star Cruises and Asiatravel.com, will become minority shareholders in the merged company.
The deal, which came after the talks were called off last week over a disagreement on the shareholding structure, has yet to be finalised as it is subject to approval by shareholders from both parties, the report said.
Southeast Asia's fledgling low-fare airline industry has been under pressure to consolidate amid tough competition, soaring jet fuel costs and reluctance by governments to open up their domestic aviation sectors.
Singapore Airlines-backed Tiger Airways, the third budget carrier based in the city-state, has expressed confidence it will survive the competition.
http://sg.biz.yahoo.com/050719/1/3tkce.html