Airline Virgin Australia has coughed up a whopping one Australian dollar ($0.88) to buy the 40 percent of Tiger Australia it didn't already own, ending a joint venture between the carriers.
While Tiger may be lamenting how the recent sharp drop in the Australian dollar will hurt its returns from the sale, the Singapore-based carrier said in a statement it views the exit as a step toward stemming further losses.
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"They're now finally capitulating," K Ajith, an analyst at UOB KayHian, said. "It's a highly competitive market to begin with. [Tiger Airlines] have been operating in the red for four or five years. They've made a profit for one or two quarters since listing."