Media outlets report Virgin Australia CEO John Borghetti is set to take up the remaining 40% stake in low cost carrier TigerAir Australia for the princely sum of just $1.
Taking full ownership of TigerAir Australia has always been part of the Virgin Australia strategy as part of their 'Virgin Vision 2017' plan.
Borghetti is quoted as saying he intends to have the struggling carrier back in profitability ahead of schedule before the end of 2016, by leveraging the resources of the wider Virgin Australia group.
So what exactly does $1 get Virgin? Obviously 40% of remaining shares, but also a fleet of 13 A320 aircraft, obvious current debt, the rights to operate the TigerAir Australia in Australia, but also the rights to operate the brand on a number of short haul international routes from Australia.
This international expansion would likely see TigerAir competing against Jetstar on routes to Bali and other south east Asian locations and may open up the opportunity for TigerAir to enter slim Trans Tasman routes, especially those that have previously been flown and dropped by the major carriers.
The transaction is expected to be completed by the end of the year pending permission from regulatory authorities and shareholders.