Virgin Australia seals super alliance
Singapore Airlines will acquire a 10% stake in Virgin Australia for $105.3 million.
The move means that weeks after Qantas forged an alliance with Emirates, Virgin has nailed down a super alliance involving SIA, Abu Dhabi-based Etihad and Air New Zealand.
Virgin Australia will pay $35 million for a 60% stake in Tiger Airways Australia which is a third owned by SIA.
Tiger Australia will be managed and run separately from its sister carrier, Tiger Singapore.
The deal effectively gives Virgin Australia a two-brand strategy aimed at countering Qantas and Jetstar.
Virgin Australia and SIA plan to boost the size of Tiger’s Australian fleet from 11 single-aisle A320s to 35 by 2018, creating a major rival to Jetstar.
by TravelMole Asia Pacific
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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