Virgin Australia's takeover of Tiger Australia hits a snag, CEO John Borghetti ready to compromise

Clouds are gathering over Virgin Australia's planned acquisition of 60% of Tiger Australia. The Australian Competition and Consumer Commission (ACCC) has delayed its decision, originally slated to be delivered on 14-Mar-2013, and has instead asked for more information about the deal from Virgin Australia and how it will impact on competition in the domestic market. No new date for a decision has been given.

The ACCC has deep concerns about the competitive impact the deal will have, given that it will effectively result in the domestic market becoming an airline duopoly by removing Tiger Australia as the third player competing with the Virgin Australia and Qantas groups.

Virgin Australia and Tiger Australia's parent, Singapore-based Tiger Airways, announced the deal on 30-Oct-2012 as part of a trifecta that also included buying all of Western Australian regional carrier Skywest, and Singapore Airlines taking a 10% equity stake in Virgin Australia.