Star Cruises To Invest US$10M In Valuair
 

Dow Jones
Friday December 17, 12:43 PM (15:43 AEST)

Star Cruises To Invest US$10M In Valuair - Source

SINGAPORE (Dow Jones)--Malaysia-based Star Cruises Ltd. - the world's third-largest cruise operator - plans to invest about US$10 million in Singapore-based budget airline Valuair Ltd., sources close to the airline told Dow Jones Newswires Friday.

With the fresh capital, Valuair is expected to buy wide-body airplanes capable of flying to destinations such as Sydney in Australia and Taipei in Taiwan, the sources said.

The injection of funds from Star Cruises will be part of a capital raising to help the airline expand its network and compete against rivals backed by strong full-service airlines, the sources added.

This will be Valuair's second round of fund-raising, after raising around S$33 million in the first phase.

Officials from Valuair and Star Cruises declined to comment but Star Cruises has invited the media to a briefing Monday to announce "a strategic investment in a leading player in Singapore's travel and leisure sector."

Valuair, which started commercial flights in May, faces stiff competition from Singapore Airlines Ltd. backed Tiger Airways and Qantas Airways' Jetstar Asia.

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