Virgin Australia Holdings Limited
(ASX:VAH) has bought a 60 per cent stake in budget airline Tiger Airways Australia for $35 million.
The alliance will see both companies invest up to a combined $62.5 million to grow the low-cost carrier and expand the fleet from 11 to 35 aircrafts by 2018.
Virgin’s chief says the deal will give greater access to the budget market.
Separately, Virgin announced it has entered into an agreement with Singapore Airlines who will invest $105 million for a 10 per cent stake in the company.
Virgin advised of a third transaction with Western Australian regional airline SkyWest. An in-principle agreement has been signed to acquire 100 per cent of its business.
Virgin Australia’s chief says the transactions are in line with its strategy to become the airline of choice in all markets, in order to diversify its earnings and drive growth opportunities.
Virgin Australia reported a net profit of $22.8 million in the 2012 financial year.
