(MENAFN) Singapore's Airlines Ltd (SIA) is to invest up to USD110 million to control affiliate Tiger Airways Ltd, shoring up the low-cost carrier while scrapping its regional ambitions, Gulf News reported.
The loss-making Tiger Airways, which recently announced a record loss, said that SIA will raise its stake to around 55 percent from 40 percent by converting existing securities into shares.
Tiger then plans rights issue of up to USD184 million, with SIA buying up to USD109.75 million of new shares and possibly raising its stake to as much as 71 percent.
"We need to now stem the losses arising from this joint venture and divert our resources back towards our Singapore-based airline in the execution of the turnaround plan," Tiger's chief executive said.
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