Virgin Australia says FIRB approves Tiger Australia deal
Published on May 28, 2013 9:28 AM
SYDNEY (REUTERS) - Australia's Foreign Investment Review Board has approved Virgin Australia Holdings Ltd's plan to take control of loss-making rival Tiger Australia, setting up a battle for domestic budget air travellers with Qantas Airways Ltd's Jetstar unit.
Virgin, Australia's No. 2 carrier, in October announced plans to buy 60 per cent of Tiger Australia for A$35 million (S$43 million) and invest a further A$62.5 million to increase the fleet size to 35 aircraft from 11 by 2018.
Australia's airline industry has been a battleground for global airlines seeking partnerships in recent months to secure domestic passengers to feed into their global and regional networks.
Qantas has established a wide-ranging alliance with Emirates Airlines, while Singapore Airlines Ltd (SIA) announced last month it was increasing its stake in Virgin Australia to 19.9 per cent.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here