Virgin Australia Acquires 60% Equity in Tigerair Australia

Virgin Australia Holdings Ltd. recently announced the completion the acquisition of 60 percent stake Tigerair Australia, formerly known as Tiger Airways Australia. With this purchase, Virgin Australia will put his men on board of directors Tigerair Australia.

Quoted from Business Spectator, Chief Executive Officer of Virgin Australia's John Borghetti will be appointed as Chairman Tigerair Australia, while Wendy Cheah was appointed as Chief Financial Officer.

"The acquisition Tigerair Australia, allows Virgin Australia for comeback again on the segment of low-cost airlines. We are very pleased to partner with Tigerair on Tigerair Australia and hoping to accelerate its growth, "said Borghetti.

Tigerair Australia Chief Executive Officer Rob Sharp said the transaction is an excellent foundation to build Tigerair Australia, guarantees the right scale to compete effectively.

"Our target is Tigerair Australia still continue to survive and become low-cost airlines were respected in Australia," said Sharp.

Previous Virgin Australia has also been successful in the acquisition other Australian airline, Skywest, which is now melt into the Virgin Regional Airlines of Australia based in Perth.

After Rebranding Tigerair Close Route Flights to Colombo

Low-cost airlines from Singapore, Tigerair, will close on routes to Colombo on the next month just from one year after the opened operation flight to the capital city of Sri Lanka, must due becouse low yield. Tigerair will not accept booking tickets to Colombo after August and the management said that the closure is only temporary.

Many people have questioned the reason for closing this route. In fact, this route was opened on May 31, 2012 with three flights a week. Then increased flight frequency to four flights a week on September as demand increases.

Tigerair also said that the field level seats on the Singapore-Colombo flight reached 85 percent. However, the company still difficult to make profits because they can not raise ticket prices. It is inversely proportional the flight to India that can bring in a lot of passengers and make a profit.