Australian budget airline Tigerair has officially shut down, with parent company Virgin Australia deciding to close the carrier amid coronavirus pressures. 9News
The company began in 2007, flying more than 30 million travellers in 13 years.
Last month, Virgin said it would not come downmarket to compete with Jetstar but intended to operate as a full capacity airline with variable prices.Virgin Australia bought a $35 million, 60 per cent share of Tiger Airways Australia in 2013, which was operating as a wholly Australian owned subsidiary of Singapore-based Tiger Airways Holdings.
The following year, Virgin bought the remaining 40 per cent of Tigerair Australia – including its losses – for the bargain price of just $1.By February 2010, Virgin had turned the tide for Tigerair, announcing the airline was now profitable after offering multiple low-cost airfares in popular routes like the Melbourne to Sydney market.
Despite the success, COVID-19 wracked not only the financial performance of Tigerair but of its parent Virgin Australia, causing both to enter voluntary administration in April 2020. Tigerair's fleet was reduced from 13 aircraft to eight, five routes were scrapped and its Brisbane base was wrapped up.
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