Tigerair completes stake sale of Australian unit to Virgin Australia

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Tigerair, formerly known as Tiger Airways, has completed the sale of a 60% stake in Tigerair Australia to Virgin Australia.

The stake sale, in which Virgin Australia will pay A$35 million ($31.7 million) for the acquisition, was first announced last October.

With the completion of the transaction, Virgin Australia's chief executive John Borghetti will be appointed chairman of Tigerair Australia, while Wendy Cheah will be its chief financial officer, Tigerair says.

Joining Borghetti on the Tigerair Australia board are David Baxby and Sankar Narayan of Virgin Australia, as well as Joseph Yuvaraj Pillay, Koay Peng Yen and Maurice Newman, who are nominated by Tigerair.

"The acquisition of 60 per cent of Tigerair Australia enables Virgin Australia to re-enter the budget travel market segment. We are very pleased to partner with Tigerair in Tigerair Australia and we look forward to working together to expedite its growth," Borghetti adds.