Tigerair to be fully owned by Virgin Australia
Virgin Australia has just revealed plans to acquire the remaining 40% stake of no-frills offshoot Tigerair Australia from Singapore-based Tigerair Holdings for AU$1.
The proposed deal will see Virgin Australia take over full ownership and control of the low-cost carrier, bringing to a conclusion its joint venture with Tiger Holdings.
Virgin Australia ceo John Borghetti said the transaction “makes an important milestone for Tigerair Australia and forms part of the Virgin Australia Group’s Vision strategy to 2017.”
Borghetti also revealed the deal would see growth for TT “likely” scaled back due to “ongoing subdued consumer demand in the Australian domestic market.”
“Under this proposed transaction, we will benefit from the economics of scale and achieve profitability ahead of schedule by the end of 2018”, Borghetti predicted.
VA commenced its joint venture with Tiger Holdings on 08 Jul last year when it acquired a 60% majority stake in the airline for $35 million, adding this morning that the partnership with the company will continue into the future.
The planned acquisition is slated to be completed by the end of 2014.
More details in today’s issue of Travel Daily.