Philippines' Cebu Air Inc., which operates as Cebu Pacific Air, will buy Tigerair Philippines as airlines look to consolidate in the competitive Southeast Asian region. Tigerair Philippines is the domestic associate of Singapore's Tiger Airways Holdings Ltd.

According to Wall Street Journal, Cebu Pacific will also buy Tiger Airway's 40% stake in Tigerair Philippines. Financial terms of the deal were not mentioned.

Although Tiger Airways will divest its finanical investment in Tigerair Philippines, the Singaporean budget carrier and Cebu Pacific have entered into strategic alliance. The said partnership will jointly operate common routes between Singapore and the Philippines, the report said.

Tigerair Philippines currently operates an average of 118 flights a week and flies to 11 domestic and international operations, from its bases in Manila and Clark, WSJ said.

Through the strategic alliance, Cebu Pacific and Tiger Airways can provide services to high growth markets including Australia and India. Tigerair will be able to fly more passengers to additional cities in Cenu Pacific's network in the Philippines and North Asia, the report said.