Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), has postponed to release a decision on Virgin Australia Holdings Ltd's planned takeover of Tiger Airways Australia, stating it wants more time to review the alliance.
Airline travellers taking Virgin Australia this weekend may have to expect come in early at the airport and expect some disruptions as the airline carrier effects a new check-in and booking system.
Virgin wants to acquire 60 per cent of the money-losing airline. The ACCC was expected to release its decision by March 14.
The ACCC is concerned the deal would take out a third player, thereby reducing competition from Australia's domestic aviation sector, to the detriment of the flying public. As part of further review, it had asked more information from Virgin.
"Virgin Australia will respond to this request for information and will continue to liaise with the ACCC regarding the transaction," the company said in a statement.
Tiger Airways Australia, owned 32.7 per cent by Singapore Airlines Ltd., likewise said it "will fully cooperate with the ACCC and provide whatever requested information is needed as soon as possible."
In October, Virgin Australia agreed to buy for AU$35 million a 60 per cent stake into Tiger Australia, a move seen to sizzle competition with Qantas Airways Ltd. (Qantas), which owns low-cost carrier Jetstar.
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