Virgin-Tiger Deal Carries Airline Duopoly Risks, Aussies Say

Law360, New York (February 7, 2013, 3:15 PM EST) -- Australia’s antitrust regulator said Thursday it was concerned that Virgin Australia Holdings Ltd.’s proposed $36 million acquisition of Tiger Airways Australia Pty Ltd. would create a duopoly in Australian air travel.

The Australian Competition and Consumer Commission released a formal statement of issue with the proposed merger, which would see Virgin — Australia’s second largest airline — take a 60 percent stake in the much-smaller discount line.

The deal, announced in October, “may raise competition concerns,” the regulator said, by limiting the number of players in...
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