Virgin Australia Holdings has concluded its 60% acquisition of the newly re-branded Tigerair in what represents the final step in Virgin’s claim for greater market share across regional and domestic markets.
The deal, which was announced in late October last year, will see Virgin Australia CEO John Borghetti become chairman of Tigerair to lead the low-cost carrier’s revitalisation.
The acquisition of 60% of Tigerair Australia enables Virgin Australia to re-enter the budget travel market segment, and hopefully allow Tigerair Australia to become a sustainable and respected budget carrier in Australia.
Tigerair will retain its own brand and operating certificates. Virgin is already signalled an intention that it would seek to grow Tigerair’s Airbus A320 fleet from the current 11 aircraft to a planned 35 aircraft by the end of 2018.
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