VIRGIN LANDS TIGER DEAL

VIRGIN LANDS TIGER DEAL

VIRGIN Australia (ASX:VAH) has finally taken control of Tiger Airways Australia after its 60 per cent acquisition of the airline completed today.

The VAH-Singapore Airlines joint venture is free to begin its assault on rival Qantas, with Tiger set to go head-to-head in the budget space against Jetstar.

The ambitious plan to take on Qantas was announced on October 30 last year and also included the purchase of Western Australia airline Skywest, which has passed all regulatory hurdles.

Virgin Australia Chief Executive Officer John Borghetti (pictured) says the recently rebranded Tigerair will grow quickly under the new ownership arrangement.

The partners will invest up to $62.5 million in the the low-cost Australian carrier and plan to grow the fleet from 11 aircraft to 35 by 2018.

“We are very pleased to partner with Tigerair in Tigerair Australia and we look forward to working together to expedite its growth,” says Borghetti.

Tigerair Australia Chief Executive Officer Rob Sharp says the deal will increase competition Australian skies.

“We are now well placed to build on the foundations of Tigerair Australia, ensuring it has the right scale to compete effectively,” he says.

“Our aim is for Tigerair Australia to become a sustainable and respected budget carrier in Australia”.

Virgin Australia Chief Executive Officer John Borghetti will be appointed as Chairman of Tigerair Australia and Wendy Cheah will be appointed as Chief Financial Officer.

David Baxby and Sankar Narayan are Virgin Australia’s two other board nominees, while Tigerair has nominated Joseph Yuvaraj Pillay, Koay Peng Yen. Maurice Newman is the independent director.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

AI-driven Evitat platform creates pathway to a more sustainable building and renovation industry
Partner Content
Evitat, an AI-driven data platform, is empowering design and build professionals in the...
Evitat
Advertisement

Related Stories

SEEK hit by $141m impairment for Chinese jobs site Zhaopin

SEEK hit by $141m impairment for Chinese jobs site Zhaopin

Online employment marketplace SEEK (ASX: SEK) has taken a hit from ...

"End of an era": me&u founder Stevan Premutico steps down from board

"End of an era": me&u founder Stevan Premutico steps down from board

Stevan Premutico, a pioneer in QR code restaurant ordering and digi...

ANZ is embroiled in allegations it manipulated government bond sales – what exactly does that mean?

ANZ is embroiled in allegations it manipulated government bond sales – what exactly does that mean?

ANZ is being investigated by the Australian Securities and Investme...

ASX biotech minnow Hexima raising $4m to buy and become autonomous intelligence company RealThing

ASX biotech minnow Hexima raising $4m to buy and become autonomous intelligence company RealThing

More than two years after losing 87 per cent of its value in a sing...