Virgin Australia completes Tiger deal
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Virgin Australia has completed the acquisition of a 60% stake in Tiger Airways’ Australian unit.
The companies first announced the planned deal back in October 2012 and received approval from Australia’s competition authorities in April 2013. Now the AU$35 million (US$32m) has finally gone through, enabling Virgin Australia and Tigerair Australia to plan to for future.
This future will see Tigerair and Virgin Australia both invest up to a further AU$62.5m in the Australian low-cost carrier, increasing its fleet size to 23 aircraft by March 2018, with the potential to reach 35 aircraft.
“We can now look forward to a new beginning for our operations in Australia. We are confident that our partnership with Virgin Australia will yield a stronger Tigerair Australia,” said Koay Peng Yen, CEO of Tigerair.
“This acquisition of 60% of Tigerair Australia enables Virgin Australia to re-enter the budget travel market,” said Virgin Australia’s CEO, John Borghetti. “We are very pleased to partner Tigerair… and we look forward to working together to expedite its growth.”
Borghetti has now been named as chairman of Tigerair Australia, and will serve on the airline’s board along with Koay Peng Yen.
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