Virgin Australia Holdings Ltd, in a statement to the Australian Securities Exchange, said it had already completed the purchase of 60% of Tigerair's, formerly Tiger Airways, shares and was ready to make a new board appointments.

Virgin Australia said it will appoint Wendy Cheah as chief financial officer while current Virgin Australia chief executive officer John Borghetti will be appointed as chairman of the new company Tigerair.

The incoming chairman was clear about where he will position Tigerair in the Australian airline industry. He said, "The acquisition of 60% of Tigerair Australia enables Virgin Australia to re-enter the budget travel market segment."

Rob Sharp, Tigerair Australia chief executive officer, said the transaction was well placed and that it will allow them to build on the foundations of Tigerair Australia, "Our aim is for Tigerair Australia to become a sustainable and respected budget carrier in Australia," he said.