Quantcast
logo

Virgin Australia buys out loss-making Tiger Airways

  • 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.

     

    Tagged as: Virgin Australia, Tiger Airways, loss-making carrier, budget Australia airlines, John Borghetti, business news