The Australian Competition and Consumer Commission (ACCC) has called for comment on the proposed acquisition of 60 per cent of Tiger Airways by Virgin Australia.

The Statement of Issues released by the ACCC sets out the Commission’s preliminary views and seeks out further information on competition issues which have arisen to this point.

“The ACCC’s preliminary view is that the proposed acquisition may raise competition concerns in the market for Australian domestic air passenger transport services,” ACCC Chairman Rod Sims said.

“The ACCC’s concerns relate to the risk of muted competition following the reduction in the number of airline groups within Australia from three to two (excluding regional airlines), and the loss of Tiger Australia as an independently owned discount competitor.”

“This potential reduction in competition arises as a result of the increased ability on the part of Qantas/Jetstar and Virgin Australia/Tiger Australia to coordinate their activities once Tiger Australia is no longer operating as an independent low cost carrier.”

In expressing this preliminary view, the ACCC has also outlined certain factors that may affect the ACCC’s final decision, including Tiger Australia’s financial position and the likely size and strength of Tiger Australia post-acquisition.

The Statement of Issues will be available at www.accc.gov.au/MergersRegister.

Submissions can be sent by email to the ACCC at This email address is being protected from spambots. You need JavaScript enabled to view it.