The Australian Competition and Consumer Commission (ACCC) has, on Tuesday 23 April, announced that it will not oppose the proposed acquisition by Virgin Australia of 60% of Tiger Airways Australia.
Tiger Airways Australia is a domestic airline that commenced operations in November 2007 and currently services 16 domestic routes with 11 aircraft. Tiger Airways Australia operates under a low cost carrier model which primarily focuses on price sensitive leisure travellers. Virgin Australia is the second largest domestic airline operator in Australia, behind the Qantas Group.
Group CEO of Tiger Airways, Koay Peng Yen, has expressed delight in receiving the green light from the ACCC, and with the approval in place, Tiger is looking forward to commencing discussions with Virgin on plans to grow Tiger Australia, to enable it to compete more effectively in Australia’s budget carrier space resulting ultimately, in a stronger Tiger Australia.
|A Tiger Airways A320 at Mackay Airport (file photo)|
Tiger Airways and Virgin Australia have committed to invest up to a further $62.5 million collectively into the business to fund growth in Tiger Airways Australia. They have also committed to increasing Tiger Airways Australia’s fleet size to 23 by the end of March 2018, with the potential to further increase to 35 aircraft.
The transaction will be completed upon fulfilment of the conditions in Tiger and Virgin’s Share Purchase Agreement. The Group expects the transaction to be completed in the second half of 2013.