What's going to happen here is what hit Qantas in 2005.
TigerAir is the future growth and profit vehicle. Expect the majority of short haul International to be given to Tiger. Virgin will play a token part in a few services to NZ. The Queensland leisure market will be handed to Tiger. Virgin might even keep a few peak hour runs....
The leader has stuffed the strategy and needs to reduce costs. In comes the Tiger.....