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Domestic dogfight
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Virgin brings Tiger to the fore to create new market dynamic
Now, the fun begins. Virgin Australia’s acquisition of a controlling stake in no frills Tiger Airways is expected to be consummated in July after it clears the final hurdle, Foreign Investment Review Board (FIRB) approval. With that, the Australian domestic airline landscape will enter a new era that promises to be viciously competitive, if not bloody.
If there is one thing airline industry analysts and insiders agree on it is that if Virgin Australia and its new charge Tiger Airways are to succeed in seriously confronting rival Qantas on the Australian domestic landscape the no-frills carriers, new chief executive Rob Sharp has to move quickly on two fronts: repairing Tiger’s woeful financial position and lifting the reputation of its brand. Both present tough but not insurmountable challenges.
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