Business Round-Up
Tigerair steps up Jetstar war with Virgin Australia backing
November 1st 2014
Virgin Australia said in October its hitherto domestic-only subsidiary, Tigerair Australia, may fly on international routes to better compete with Jetstar in the low-cost market - subject to regulatory approval. But chief executive, John Borghetti, said the growth plans of the Tigerair domestic fleet are “likely to be reduced”, given the “ongoing subdued consumer demand” in the Australian market. Read More » When Virgin first bought its Tigerair share in 2013, it indicated the fleet could be expanded by up to 35 aircraft, from its present 13 A320s. Virgin wants to acquire the remaining 40% stake in loss-making Tigerair Australia held by Tiger Airways Holdings Singapore, for one Australia dollar. The transaction is expected to be completed before the end of this year.
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Brisbane-based Virgin Australia has reported an A$59.1 million ($52 million) net loss for the first quarter of the 2015 financial year, ended September 30, an 18.3% improvement over the prior-year period, despite the first quarter being traditionally a weaker period for the airline.
