SINGAPORE, Aug 8 (Reuters) - Singapore’s competition watchdog has cleared a proposal from struggling budget airline Tiger Airways Ltd and Scoot Pte Ltd to extend their partnership in a move that is expected to help both carriers boost traffic.
As part of the anti-trust immunity, the two airlines will be able to collaborate on pricing, sales, scheduling and other matters, a tie-up that analysts said could make it easier for Singapore Airlines Ltd (SIA) to restructure both companies.
“The alliance will also enable Scoot and Tigerair to collaborate closely on connecting traffic via Changi airport, supporting the Singapore aviation hub and broader economy,” Tiger and Scoot said in a joint statement on Friday.
SIA owns about 40 percent of short-haul operator Tiger and 100 percent of medium-to-long haul operator Scoot. In May, Lee Lik Hsin, a 20-year veteran of SIA and a board member of Tiger, became the CEO of the budget airline, in a sign that its largest shareholder will wield greater influence at Tiger. (Reporting by Anshuman Daga)