Tiger will now operate as Virgin's low cost carrier up against Jetstar as Virgin continues to position itself as a full service competitor to Qantas.
The implications for international flights out of Darwin are far from clear at this stage but Ian Kew, CEO of Darwin International Airport has speculated that it could see the return of Tiger to Darwin and use of Darwin as a hub linking Australia with Asia. In the past Tiger used Darwin as a link between Singapore and Melbourne. With the Tiger Group now established in Indonesia and the Philippines as well, Darwin could act as a hub between those countries and Singapore to southern destinations, leveraging off Virgin's emerging domestic connections.
NT News, Nigel Adlam, 31 October 2012
TERRITORIANS could be the big winners of Virgin Australia buying a controlling share in Tiger Airways.
Airport chiefs hope it will lead to more international and domestic services to Darwin and Alice Springs.
Virgin is now in alliance with Tiger, Singapore Airlines, Abu Dhabi-based Etihad and Air New Zealand.
NT Airports head Ian Kew said such a powerful operation could open the skies for Territorians.
‘‘ It gives the Virgin alliance more options to pick the right prices for the right market,’’ he said.
In a complicated deal, Virgin has sold 10 per cent of its Australian company to Singapore Airlines for $105 million and bought 60 per cent of Tiger for $35 million.
It has also paid $99 million for Skywest.
Tiger is to triple its fleet of Airbus A320s over the next five years.
Virgin flies from Darwin to Brisbane, Sydney and Melbourne. Skywest goes to Perth via Broome and Kununurra. Virgin boss John Borghetti said Perth- based Skywest would expand its services, particularly to regional Australia.
Mr Kew said he hoped the Virgin business deals would lead to the return of Tiger Airways to Darwin and Alice Springs.
He said the airline had long seen Darwin as a possible hub for its operations.
Centralians would welcome the return of Tiger flights from Alice Springs to southern capitals as competition to Qantas.
Virgin’s Etihad link has potential to pay dividends for Territorians as well.
The previous government lobbied Etihad to stop over in Darwin on the way from the East Coast to the Middle East, which would open another route to and from Europe that Territorians could benefit from.
The main loser in yesterday’s aviation industry is expected to be Qantas, which now faces cut-price competition on several fronts.