SIA scraps potential equity investment in low-cost carrier Jeju Air
Talks with the Korean carrier have ceased.
Singapore Airlines said yesterday that it will not proceed with a potential equity investment in Jeju Air, one of South Korea’s largest low-cost carriers.
SIA did not provide a reason for its decision to scrap the deal, which was first revealed in March this year.
According to OCBC, cutthroat competition from gulf carriers will continue to weigh on SIA in coming quarters.
“Its previously successful focus on just long-haul Americas and Europe routes is no longer the recipe for future growth. Strategic investments may help, but these processes take time,” OCBC said.
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