Virgin
Australia Holdings Limited (Virgin
Australia)
today welcomed the ACCC’s decision not to oppose Virgin Australia’s
proposed acquisition of 60 per cent of the existing shares in Tiger
Airways Australia Pty Ltd (Tiger
Australia).
The
proposed transaction will enable Virgin Australia to better serve
budget travellers and expedite Tiger Australia’s growth, with Tiger
Airways and Virgin Australia committing to invest up to a further
AUD62.5 million collectively into the business.The ACCC approval represents another important step for Virgin Australia in completing the proposed transaction announced on 30 October 2012.
Virgin Australia Chief Executive Officer John Borghetti said: “We are very pleased to receive clearance from the ACCC for the proposed acquisition of 60 per cent of Tiger Australia.
“There is a real opportunity to provide strong competition in the budget travel segment and bring further benefits to consumers.
“By partnering with Tiger Airways, we can use our local expertise to build a sustainable budget carrier, which will offer great value airfares and benefit jobs and tourism in Australia”, Mr Borghetti said.
The proposed transaction still remains subject to certain conditions and regulatory approvals, including from the Foreign Investment Review Board.
