Virgin Australia Holding (ASX:VAH) has launched a proposed acquisition of the remaining 40% interest in Tiger Australia Airways for $1.
This will give Virgin 100% ownership of Tigerair Australia and concludes its joint venture with Tiger Holdings.
As part of the proposed acquisition, the company will secure the brand rights to fly Tigerair Australia to a number of short-haul international destinations, providing new growth opportunities.
Virgin will also benefit from the economies of scale and expects to achieve profitability ahead of schedule by the end of 2016.
Completion is expected by the end of 2014.
Virgin reported an underlying loss before tax of $45 million for the first quarter of the 2015 financial year, an 18.3% improvement over the previous corresponding period.
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