Australian low cost company, Tigerair general closure

Tigerair began its first flight in Australia in 2007 and made a profit since early 2010 after offering low-cost flights on popular domestic routes. - File image

SYDNEY: Australian low-cost carrier Tigerair has announced an official closure due to pressure from the company due to COVID-19, Xinhua news agency reported.

In an email sent to its customers on Thursday night, Tigerair confirmed the closure and suggested those still with a valid ticket convert it into travel credit for the airline operated by its parent company, Virgin Australia.

"There is no denying that this is a difficult time for all involved in the travel and tourism industry," the statement said.

"Unfortunately, after almost 13 years of operation, one difficult decision we had to make was to terminate the service of the Australian Tigerair brand."

Tigerair began its first flight in Australia in 2007 and made a profit since early 2010 after offering low-cost flights on popular domestic routes. It was fully owned by Virgin Australia in 2014.

Despite initial success in operations for nearly 13 years, Tigerair and its parent company Virgin Australia have been severely affected by the COVID-19 pandemic.

Both companies had to take steps to appoint an administrator to save the company through the restructuring of assets and liabilities.

Virgin Australia was bought by US firm Bain Capital through an agreement expected to be finalized by the end of October.

- BERNAMA