Virgin Australia buys out loss-making Tiger Airways
October 17 , 2014
Virgin Australia is buying out Tiger Airways, the loss-making carrier, for A$1, media reports say.
It will take complete control of the budget of Australia airlines, up from its 60% stake currently.
Chief Executive John Borghetti said the firm would “benefit from the economies of scale” and make a profit before schedule. He, however, said the growth in Tigerair Australia’s domestic fleet was expected to be reduced.
Virgin said the takeover is likely to be completed by 2014-end.