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Merger clearance decisions

Virgin Australia Holdings Limited and Tiger Airways - proposed joint venture to operate Tiger Airways Australia

Not opposed



From merger register

'Virgin Australia Holdings Limited and Tiger Airways Holdings Limited proposed to enter into a joint venture for the operation of Tiger Airways Australia Pty Ltd. Under the proposed joint venture Virgin Australia Holdings Limited will acquire a 60% interest in Tiger Airways Australia Pty Ltd, with a 40% shareholding remaining with Tiger Airways Holdings Limited.'

ACCC press release (23 April 2013):

'Virgin Australia is the second largest domestic airline operator in Australia, behind the Qantas Group.

Tiger Australia is a domestic airline that commenced operations in November 2007 and currently services 16 domestic routes with 11 aircraft. Tiger Australia operates under a low cost carrier model which primarily focuses on price sensitive leisure travellers.

“The ACCC’s view is that this acquisition is unlikely to lead to a substantial lessening of competition in the Australian market for domestic air passenger transport services,” ACCC Chairman Rod Sims said.

“Essential to reaching this view was the ACCC’s assessment, made after thorough and extensive testing of the issue, that Tiger Australia would be highly unlikely to remain in the local market if the proposed acquisition didn’t proceed. Absent this conclusion the acquisition raised considerable competition concerns.'