Singapore Airlines Ltd said Thursday that it had ended talks to buy a stake in South Korea’s Jeju Air.
In March this year, Singapore Airlines had said it was in talks with South Korea’s Jeju Air Co Ltd to acquire a stake in it, either directly, or via the low-cost carrier’s upcoming initial public offering.
“Discussions have now ceased,” Singapore Air said in a statement to the Singapore stock exchange (SGX) Thursday. “The parties will not be proceeding with a transaction.”
Jeju Air, that is 86 per cent owned by personal care product-to-chemicals Aekyung Group, had been looking to raise capital to expand operations to markets such as China and other North Asian destinations.
In a regulatory filing, Jeju Air too said that it was decided against Singapore Air’s equity investment proposal. Both companies did not share further details.
For Singapore Airlines, that had recently expanded to India, Australia and Thailand, the deal would have given it increased access to North Asia, and allowed it to grow its portfolio at the time its profits have been squeezed by competitors in the budget airlines space in the region.
The airlines is also investing in new aircraft to claw back market share in the region.