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Virgin Buys Into Tiger Airways, Still Offers Cheap Flights

Virgin Australia has bought out 60% of Tiger Airways, as well as the Western Australia Skywest.  What does this mean for passengers of Tiger?  It means business as usual as the carrier will still operate as a budget airline and passengers will still be able to buy cheap tickets and pay extra fees for baggage and the like.  Virgin bought their share in Tiger for a mere $35 million, with an additional $5 million owing if the airline meets performance targets.

 

Virgin and Tiger will remain completely separate airlines.  There will be no codesharing and Tiger passengers will not be able to earn Virgin’s Velocity travel points.  The difference with Tiger will be in the airline’s number and breadth of destinations, which will become more widespread as Tiger’s fleet is expanded from 11 to 35 aircraft.  The deal will not be finalized until June of 2013 and Virgin’s ticket prices might see a slight increase.

 

The above article is a summary.  Please see the source article at Google News.

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