Some is not right here.
[SINGAPORE]
After six months of suspense, Tiger Airways has finally got the green light to sell 60 per cent of its loss-making Tiger Australia to Brisbane-based Virgin Australia for A$35 million (S$44.5 million).
Australia's regulator, the Australian Competition and Consumer Commission (ACCC), yesterday gave the nod, saying "it will not oppose the proposed acquisition by Virgin Australia", and noting that Tiger Australia is unlikely to remain in the local market without the Virgin investment.
The carrier's stock jumped on the news, rallying as much as 12 per cent to 73.5 cents, before ending the day at 68.5 cents, up 4.6 per cent. Some 14 million shares changed hands.
Tiger Airways' group CEO, Koay Peng Yen, welcomed the news, calling it "fantastic".
SYDNEY - Virgin Australia on Wednesday said Singapore Airlines had agreed to buy a further 9.9 per cent stake in the company for Aus$122.4 million (S$156 million) as rivals to Qantas step up their game.
The Singapore flag carrier will purchase 255.5 million shares held by the Virgin Group at 48 cents each, taking its total holding in the Australian domestic airline to 19.9 per cent, Virgin said in a notice to the stock exchange.
The purchase, which follows the purchase of a 10 per cent stake last year, still needs the approval of Australia's Foreign Investment Review Board even though it remains below the threshold of 20 per cent at which a full takeover bid must be launched.
If it goes ahead Singapore will become one of the top three shareholders along with Richard Branson's Virgin Group and Air New Zealand.
Abu Dhabi-based airline Etihad also holds a significant share, giving Virgin Australia hefty financial clout to contend domestically with Qantas.
"Our partnership with Virgin Australia has been going from strength to strength, offering a wide range of consumer benefits," said Singapore Airlines chief executive Goh Choon Phong.
"Increasing our stake in Virgin Australia is another example of Singapore Airlines' deep commitment to the important Australian market.
"It also demonstrates our support for the ongoing transformation of Virgin Australia, which has created a more competitive aviation market in Australia."
The two carriers entered into a long-term partnership in 2011, covering codesharing, reciprocal frequent-flyer programme benefits and coordinated schedules.
Australia has a lucrative domestic market and global airlines have been deepening ties with local carriers to access it.
Last year, Qantas and Emirates announced a major global alliance that opens up the Australian firm's domestic network of more than 50 destinations and nearly 5,000 flights per week to the Dubai-based airline.
Singapore Airlines is a key international competitor to Qantas.
The announcement comes a day after Australia's competition regulator approved Virgin Australia's purchase of a 60-per cent stake in low-cost rival Tiger Airways Australia, despite concerns about the market becoming a duopoly.
Tiger Airways Australia is the loss-making local subsidiary of Singapore's Tiger Airways.
