Virgin-Tiger deal reaches completion

Virgin Australia has completed its acquisition of 60% of the newly renamed Tigerair Australia, completing the transaction which was announced in October.

Tigerair chief executive Koay Peng Yen hailed the deal as a “new beginning” for its Australian operations.

“We are confident that our partnership with Virgin Australia will yield a stronger Tigerair Australia,” he said.

Meanwhile, Virgin chief executive John Borghetti said the joint venture would enable Virgin Australia to re-enter the budget travel market segment.

“We are very pleased to partner with Tigerair in Tigerair Australia and we look forward to working together to expedite its growth,” he said.

Tigerair Australia;s newly appointed chief executive Rob Sharp said: “We are now well placed to build on the foundations of Tigerair Australia, ensuring it has the right scale to compete effectively. Our aim is for Tigerair Australia to become a sustainable and respected budget carrier in Australia”.

Virgin Australia Chief Executive Officer John Borghetti will be appointed as chairman of Tigerair Australia and Wendy Cheah will take the role of chief financial officer.