Virgin Australia narrows Q1 loss as capacity eases. Tigerair Australia to become 100% subsidiary

Virgin Australia has unveiled plans to acquire the remaining 40% stake of Tigerair Australia for a token sum of AUD1, enabling Singapore-based Tiger Airways Holdings to essentially end its unsuccessful pan-Asia Pacific strategy.

Tiger, which earlier this year sold its stake in Tigerair Philippines and exited the Indonesian market with the suspension of services at Tigerair Mandala, is now focusing on turning around around its Singapore operation. But the Tigerair Australia brand will be retained and the Tigerair brand is also now present in Taiwan, where the group owns only a 10% stake in recently launched Tigerair Taiwan.

The biggest benefit to Virgin could be appeasing its shareholder Singapore Airlines (SIA), which is set to increase its stake in Tiger Holdings from 40% to at least 55%. The agreement could also see Tigerair Australia operate short-haul international routes. Previously Virgin and Tigerair showed no interest in such deployment of Tigerair as Tigerair Australia, which has been consistently unprofitable since launching services in 2007 and has been focusing on improving its performance in the domestic market.