Virgin Australia has Tuesday gained the all-clear from the Foreign Investment Review Board for its proposed acquisition of 60 percent of shares in Tiger Airways Australia.
Virgin is now another step closer to acquiring Tiger Australia, which will enable the airline to access the budget market segment in competition with Qantas' Jetstar unit, and accelerate the growth of Tiger down under.
Tiger Airways and Virgin Australia have committed to a joint investment of 62.5 million Australian dollars (60.23 million U.S. dollars) to fund development in Tiger Australia, and grow the airline's fleet from 11 to up to 35 aircraft by 2018.
"By partnering with Tiger Airways, we can use our expertise to leverage Tiger Australia's competitive cost base and build a sustainable budget carrier," said Virgin Australia Chief Executive Officer John Borghetti.
"We are committed to maintaining the Tiger Australia business model and brand, and we look forward to collaborating with Tiger Airways as the business grows," he added.
While the country's competition regulator (ACCC) has approved the deal, the proposal still remains subject to certain conditions. Virgin says it expects the transaction to complete by mid-July 2013.