Virgin’s Tiger ambitions stalled by regulator
Australia’s competition watchdog has struck a blow for low fares by raising concerns over plans by Virgin Australia to take control of Tiger Australia.
Head of the Australian Competition and Consumer Commission, Rod Sims, said the regulator’s preliminary view was that the proposed acquisition "may raise competition concerns in the market for Australian domestic air passenger transport services".
He said the concerns related to "the risk of muted competition following the reduction in the number of airline groups within Australia from three to two … and the loss of Tiger Australia as an independently owned discount operator".
"This potential reduction in competition arises as a result of the increased ability on the part of Qantas-Jetstar and Virgin Australia-Tiger Australia to coordinate their activities once Tiger Australia is no longer operating as an independent low-cost carrier," Sims said.
However, the ACCC said it would take into serious consideration the impact of Tiger exiting the domestic market if the deal was not approved.
"This would be highly relevant to our assessment," Sims said.
In a statement, Virgin Australia said it was in the process of reviewing the ACCC document and preparing its response.
A final decision by the ACCC is expected on March 14.
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025