Virgin Australia to buy remaining 40% of Tigerair Australia from SIA for A$1

VIRGIN Australia plans to buy the remaining 40 per cent of loss-making low-cost carrier Tigerair Australia from Singapore Airlines for A$1 (S$1.1) and fly the airline internationally.

The transaction will see the carrier become a wholly owned subsidiary of Virgin, which already owns a 60 per cent stake, purchased last year.

Virgin will keep Tigerair's low-cost business model and the separate brand.

It will also secure the brand rights of Tigerair Australia to a number of international destinations that it says will provide new growth opportunities.

UPDATE: Tiger Airways to divest Aussie carrier for A$1, raise S$234m in rights issue