It's a deal, it's a steal, it's the sale of the century: Virgin pays $1 for Tiger

It's a deal, it's a steal, it's the sale of the century: Virgin pays $1 for Tiger
By admin


Virgin Australia plans to buy the remaining 40% of shares in Tiger Australia from Tiger Airways Holdings for A$1 and fly the airline on a number of short-haul international routes.

Virgin already owns 60% stake in the airline, and once the latest transaction is completed, it will secure 100% of the loss-making low cost carrier, Tiger Australia concluding the joint venture which commenced in mid last year.

As part of the acquisition, Virgin Australia will be bestowed brand rights to fly Tiger Australia to short-haul international destinations providing new growth opportunities in line with the group’s ‘Virgin Vision’ strategy to 2017, according to the airline.

“Given the ongoing subdued consumer demand in the Australian domestic market, the growth of the Tigerair Australia domestic fleet is likely to be reduced. Under this proposed transaction, we will benefit from the economies and achieve profitability ahead of schedule by the end of 2016 by leveraging the resources of the Virgin Australia Group,” Virgin CEO, John Borghetti said.

Borghetti said Virgin remains committed to maintaining the airline’s low cost business model and the separate Tigerair brand, “ensuring that we can continue to deliver the most competitive pricing in Australian budget travel”.

Virgin said the partnership will continue in future through brand licencing and certain services will continue to be provided by Singaporean-based Tiger Holdings to Tiger Australia. Virgin said it will consolidate Tiger Australia’s financial results moving forward should the transaction proceed.

The transaction, subject to Federal Investment Review Board approval, is expected to be completed by the end of the year.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]