This confirmation satisfies another condition for the proposed acquisition of Tiger Australia, which will enable Virgin Australia to access the budget market segment and expedite the growth of Tiger Australia.
The proposed transaction still remains subject to certain conditions and Virgin Australia expects the transaction to be completed by mid-July.
Top Copyright Photo: Ivan K. Nishimura/Blue Wave Group. Virgin Australia’s brand new Boeing 737-8FE WL VH-YFF (msn 40994) and crew pass through Honolulu on delivery.
Above Copyright Photo: Virgin Australia.
Tiger Airways (Australia):
Bottom Copyright Photo: Peter Gates/AirlinersGallery.com. Tiger Airways’ Airbus A320-232 VH-VNH (msn 3734) stops at Brisbane.
Tiger Airways (Singapore) will start nonstop flights between Hong Kong and Jakarta on July 25. Tiger Airways will fly to the capital of Indonesia four times weekly on Monday, Tuesday, Thursday and Saturday, with an increase to daily flights from September onwards.
Tiger Airways has been rapidly expanding its network in Indonesia this year. Domestically within Indonesia, the airline flies between Jakarta and key cities including Bali (Denpasar), Medan, Surabaya, Padang, Pekanbaru and Yogyakarta.
Top Copyright Photo: Jens Polster/AirlinersGallery.com All others from Tiger Airways). Airbus A319-132 9V-TRB (msn 3801) prepares to land at Bangkok.
Tiger Airways (Australia) (Melbourne) intends to expand its fleet from 11 aircraft to 23 in five years. The expanding airline will be battling Jetstar Airways for market share in the budget travel segment. Rob Sharp is the new CEO, the fifth CEO in five years.
Virgin Australia Holdings Limited (Virgin Australia Airlines) (Brisbane) is making three bold moves. The company issued the following statement:
Virgin Australia Holdings Limited today announced three transactions designed to accelerate the growth of the business, diversify its earnings and increase competition in Australia.
The transactions include:
making a placement of shares to Singapore Airlines (Singapore), which will see Singapore Airlines owning a 10% interest in Virgin Australia Holdings;
entering a Share Purchase Agreement to acquire 60% of the existing shares in Tiger Airways Australia (Melbourne) from Tiger Airways; and
entering an in-principle agreement with Skywest Airlines (Perth) to acquire 100% of its business.
Virgin Australia Chief Executive Officer John Borghetti said: “The transactions announced today are in line with Virgin Australia’s strategy to become the airline of choice in all markets, in order to diversify our earnings and drive growth opportunities for the business.
“The acquisition of Tiger Australia and Skywest provides Virgin Australia with a strong presence in the budget, Fly-in Fly-Out (FIFO) and regional markets, enabling us to fast-track our expansion in these areas and become a stronger competitor”, Mr Borghetti said.
“These transactions will bring important benefits to Australia, driving growth in jobs, tourism and competition”, Mr Borghetti said.
If approved, following the completion of the transactions, the Virgin Australia Group will expand to 139 aircraft and over 9,000 employees .
Virgin Australia will keep the market updated regarding progress on these transactions.
Meanwhile partner Singapore Airlines (Singapore) has ordered 20 Airbus A350-900s and five A380s and will assign its 20 Boeing 787-9 Dreamliners to subsidiary Scoot (Singapore).
Top Copyright Photo: Lloyd Fox. If approved, Skywest Airlines (Perth) will become a 100% subsidiary of Virgin Australia. The regional carrier is already operating ATR 72-500s for Virgin Australia in their livery. The Skywest brand used for other Western Australia routes is now likely to disappear.
Tiger Airways (Australia):
Bottom Copyright Photo: Micheil Keegan. Since Singapore Airlines and its Tiger Airways (Australia) subsidiary are now partners with Virgin Australia, it is unclear if Tiger Airways (Australia), a competitor of Virgin Australia, will continue to use the the Tiger Airways brand in Australia or operate now under the Virgin Australia name. Airbus A320-232 VH-VNO (msn 4053) climbs away from Sydney.
Tiger Airways (Australia) (Melbourne) is making a comeback after its grounding under the direction of CEO Andrew David. The group continues to lose money but it is working towards returning to profitability.
Tiger Airways (Australia) (Tigerairways.com) (Melbourne) has work to do to repair its relationship with the traveling public. Its customers are the least satisfied airline travellers in Australia, while people who fly REX-Regional Express and QANTAS Airways are the happiest.
Roy Morgan Research’s latest Airline Satisfaction report found more than 83 per cent of people who travelled on REX-Regional Express in the last year were satisfied.
Passengers who travelled on QANTAS Airways, QANTASlink and Virgin Blue Airlines were next happiest.
What is troubling for Tiger is only about one half of the passengers who flew on Tiger Airways were satisfied, compared to about two thirds who flew on rival Jetstar Airways.