Australia's Foreign Investment Review Board has approved Virgin Australia's acquisition of a 60% stake in Tiger Airways Australia, Virgin Australia Holdings has announced. VAH confirmed FIRB had "no objections" to the proposed acquisition.

In February, the Australian Competition and Consumer Commission chairman Rod Sims had said the acquisition may raise domestic competition concerns, cutting the number of mainline airline groups from three to two.

"This confirmation satisfies another condition for the proposed acquisition of Tiger Australia, which will enable Virgin Australia to access the budget market segment and expedite the growth of Tiger Australia," VAH said, adding the proposed transaction still remains subject to certain conditions.

Virgin Australia expects the transaction to complete by mid-July.

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