Virgin seals $1 buy-out of Tigerair

Virgin seals $1 buy-out of Tigerair

Virgin Australia Holdings has completed its acquisition of the remaining 40% of Tiger Airways Australia, making it the full owner of the airline.

“We remain focussed on maintaining Tigerair Australia’s low cost business model and a separate brand whilst ensuring there is a viable low cost alternative in the market for consumers,” Virgin Australia chief financial officer, Sankar Narayan said.

As part of the acquisition, Virgin has secured the brand rights to fly Tigerair Australia to a number of short-haul international destinations as earmarked during the buy-out of the remaining shares, which the airline purchased for $1.

“The completion of this acquisition marks the next phase of Tigerair Australia’s evolution into the Australian market and represents an important step in its pathway to sustainable profitability,” Narayan said.

Virgin today posted a $55.3 million pre-tax profit in the second quarter of the current financial year.

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