The Australian competition regulator has given approval for Virgin Australia Holdings to take control of Tiger Australia. The move would ramp up the competition with Qantas Airways in the Australian domestic market.

Virgin is currently the second largest carrier in Australia and has planned to purchase 60% of Tiger Australia for the sum of Aus$35 million and infuse another Aus$62.5 million for the increase of its fleet from eleven aircraft to thirty five in five years.

Part of the deal would include a 10% purchase stake by Singapore Airlines Ltd in Virgin Australia. The deal was approved as Tiger Airways Holdings Ltd would not be able to remain in the local market and compete viably without the investment from Virgin Australia.

According to a statement from the Australian Competition and Consumer Commission, "Virgin Australia now has the opportunity to pursue its stated objective of transforming Tiger Australia into an effective competitor to Jetstar for price sensitive travellers."