Singapore-based low cost airline Tiger Airways is expected to get a significant boost with the upcoming majority stake purchase in its loss-making Australian subsidiary, Tiger Airways Australia, by Virgin Australia. Tiger Australia has had a rough ride in the past few years and was even grounded for six weeks in July 2011 over safety concerns.
Virgin Australia is also expected to take over the day-to-day operations of Tiger Airways after the proposed 60 percent stake purchase. This will allow Tiger to focus on the rapidly growing Southeast Asian market. Tiger has recently bought significant stakes in Philippine airlines Mandala and Seair and is trying to bring these airlines to profitability.
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ANALYSIS: Tiger eyes Southeast Asia after Virgin Australia deal