Virgin will complete Tigerair takeover for just A$1

Parent company Tiger Holdings of Singapore has agreed to sell its remaining 40 percent stake in the carrier, which has struggled to reach profitability, for the tiny sum but would continue to licence its brand to Virgin, the Australian Associated Press reports.

Virgin bought a 60 percent stake in Tiger in mid-2013 and Chief Executive John Borghetti today said moving to full ownership would enable it to bring the discount carrier to profitability sooner.

"Under this proposed transaction, we will benefit from the economies of scale and achieve profitability ahead of schedule by end-2016, by leveraging the resources of the wider Virgin Australia Group," he was quoted as saying.

Under the deal, Virgin would also obtain brand rights to fly Tigerair Australia to overseas destinations, which could see it compete with Qantas-owned Jetstar, internationally.