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
