Virgin Australia airline has purchased a 60% stake in low-cost carrier Tiger Airways. The deal is said to be worth $35 million AUD.
The deal will allow Tiger Airways to expand its fleet and presence in Australia, where it was temporarily grounded in 2011 over safety concerns.
Commenting on the deal, Virgin Australia CEO John Borghetti said: “By partnering with Tiger Airways, we can use our expertise to leverage Tiger Australia’s competitive cost base and build a sustainable budget carrier. While Virgin is taking a significant stake, Tiger will continue to operate under the Tiger Airways brand.”