Singapore Airlines (SIA) has confirmed that it held talks to purchase a stake in South Korean low-cost carrier Jeju Air.
"Singapore Airlines wishes to confirm that discussions have taken place on a possible equity investment in [Jeju Air],” said the airline in a filing with the Singapore Exchange.
However, the company did emphasise that “these discussions may not result in a transaction”, and that it would provide further announcements and updates when necessary.
SIA already boasts a strong low-cost portfolio with both Scoot and Tigerair being wholly owned by the Singapore national carrier. It also owns a 22.8 per cent stake in Virgin Australia, and has a joint venture partnership with India’s Tata Group for Vistara.
While details have yet-to-be confirmed, a report by South Korea’s Maeil Business newspaper suggests that SIA is looking to acquire about 20 per cent of Jeju Air.
The article goes on to state that both SIA as well as the Aekyung Group, which holds an 86.23 per cent stake in Jeju Air began initial talks late last year, and are now at the “final stage of negotiation for the acquisition price".