Tiger Airways calls for shareholder meeting on Virgin joint venture

Singapore
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Tiger Airways Holdings has called an extraordinary general meeting for its shareholders to vote on a plan to transform its Australian subsidiary into a joint venture with Virgin Australia.

In a filing on the Singapore Stock Exchange, Tiger says the meeting will be held on 31 January, in Singapore, to consider and vote on the plan, which would lead to Virgin taking a 60% stake in Tiger Airways Australia and operating it as a joint venture.

Approval by Tiger shareholders is one condition that must be met for the plan to proceed. Approval is also necessary from the Australian Competition and Consumer Commission (ACCC), which will make an announcement on the same day as the shareholders' vote.

ACCC chairman Rod Sims recently said in a media interview that there were some concerns that the joint venture would remove a third airline from the domestic market, but added that the joint venture could allow Virgin to compete more effectively against Qantas's budget unit Jetstar.