The competition regulator has expressed concerns about Virgin Australia's plan to take over Tiger Airways Australia.
The Australian Competition and Consumer Commission is now seeking comment on competition issues arising from Virgin's plan to take a 60 per cent stake in Tiger Australia.
The regulator says the deal could reduce competition by cutting out a third major player in Australia's domestic air travel market, as well as by removing an independently owned low-cost airline from the market.
However, it says the risk that Tiger could exit the market if the deal does not go ahead will also influence its decision.
The ACCC now expects to make its final ruling in mid-March.