Virgin Australia has outlined plans to buy the remaining 40 per cent of shares in Tigerair Australia for AS$1.
Tigerair Australia was launched as a joint venture between Singapore-based low-cost carrier Tigerair and Virgin Australia in July 2013.
Virgin Australia expects to take complete ownership of Tigerair Australia before the end of the year and has confirmed that the regional airline will remain an LCC, but that planned expansion of its domestic fleet will be curtailed due to “subdued demand”.
The deal will further assist Tigerair in reducing its overcapacity. In the past four months Tigerair has closed its Indonesian subsidiary Tigerair Mandela and confirmed the sublease of 12 A320 aircraft to Indian airline IndiGo.