Crash and burn: Tigerair sells 40% stake in Tigerair Australia for a measly $1

The buyer is Virgin Australia.

In another bid to cut its losses, Tiger Airways yesterday revealed that it is selling its 40% stake in Tigarair Australia for AUD 1 ($1.1) to Virgin Australia.

Virgin Australia already owns 60% of Tigerair Australia. Following the sale, the loss-making carrier will become a subsidiary Virgin Australia.

“On 16 October 2014, the Group signed an agreement with Virgin Australia to sell its remaining 40% stake in Tigerair Australia for AUD1. The branding and website distribution arrangements continue and the Group will still obtain franchise revenues. Taking into account impairment of shareholder loans and having made provisions for share of potential losses from the disposal of Tigerair Australia’s future aircraft deliveries, the Group has recorded a S$59.8 million charge in relation to this planned divestment,” Tigerair noted in a release.