Virgin Australia is back in the budget travel business after inking its 60 per cent stake in the newly-rebranded Tigerair Australia.

The partial takeover comes after the move, announced in October 2012, won approval from the Australian Competition and Consumer Commission.

Virgin chief executive John Borghetti said the company had taken ownership of the stake on Monday.

He said the partial takeover meant the company was once again involved in the budget travel market, which Virgin moved away from several years ago as it sought to attract more business travellers.

“The acquisition of 60 per cent of Tigerair Australia enables Virgin Australia to re-enter the budget travel market segment,” he said.

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

The partial takeover comes less than a week after the budget carrier changed its name from Tiger Airways to Tigerair and ditched its “leaping tiger” mascot as part of a rebranding exercise.

Tiger has led a troubled existence since its establishment in Australia in 2007: it has yet to make a profit and was grounded for six weeks in 2011 due to safety concerns.

Mr Borghetti will be appointed chairman of Tigerair Australia while former ABC chairman Maurice Newman will also join the board.

Others directors will include the CEO of Tigerair’s Singapore-based parent company, Koay Peng Yen, along with the company’s chairman Joseph Yuvaraj Pillay, Virgin director David Baxby and Virgin CFO Sankar Narayan.

Tigerair Australia chief executive officer Rob Sharp, a former Qantas executive who joined the company in May, said the deal would help the airline to become a sustainable budget carrier.

“We are now well placed to build on the foundations of Tigerair Australia, ensuring it has the right scale to compete effectively,” he said.

Virgin shares finished Monday one cent higher at 44.5 cents.