Australian regulators will not oppose Virgin Australia’s proposed acquisition of a majority stake in Tiger Airways Australia, clearing the way for the deal.
The Australian Competition and Consumer Commission chairman said that Tiger Airways was likely to quit Australia if the acquisition by Virgin failed. Therefore the deal will not diminish competition.
Virgin Australia announced in December 2012 that it plans to acquire a 60 percent stake in Tiger Airways. Tiger has been facing severe losses in the last few years and even had its aircraft grounded for 6 weeks in July 2011 over safety concerns.