Singapore Airlines discusses investment in Jeju AirSingapore Airlines held discussions regarding an investment in Korea’s Jeju Air, as the city-state’s flag carrier expands overseas amid competition with budget airlines at home.
“These discussions may not result in a transaction,” the company said in a statement to the stock exchange Tuesday. “Singapore Airlines will make further public announcements as necessary.”
Chief Executive Officer Goh Choon Phong has ordered $17 billion in new aircraft and expanded the carrier to Australia and India in response to competition from budget airlines that are growing their market share in Southeast Asia. Singapore Air partnered with India’s Tata Group to start Vistara, and in 2012 it bought a 10 percent stake in Virgin Australia Holdings and has since increased it to about 22.8 percent.
Jeju Air started the process of an initial public offering. The company was looking for a partner to help grow the business, Chief Executive Officer Ken Choi said in an interview in November.
Jeju Air’s shares traded at 31,000 won ($27.5) in Seoul on Tuesday, giving it a market capitalization of 682 billion won.