Virgin yesterday completed the purchase of a 60 percent stake in low-cost rival Tigerair Australia and named its chief executive John Borghetti as chairman of the new business.

Australia's competition regulator agreed to the tie-up earlier this year and Virgin, the country's second-largest carrier after Qantas, said all the formalities were now complete.

"The acquisition of 60 percent of Tigerair Australia enables Virgin Australia to re-enter the budget travel market segment," Borghetti said.

"We are very pleased to partner with Tigerair Australia and we look forward to working together to expedite its growth."

Australia's competition watchdog ruled the acquisition, worth A$35 million (US$31.6 million), was unlikely to lead to a substantial loss in competition. Had it not gone ahead, it said Tigerair, previously known as Tiger Airways Australia, would likely have exited the market.

Tiger, the loss-making local subsidiary of Singapore's Tiger Airways, has a history of poor financial and operational performance.