Virgin Australia Sells 10% Stake to Singapore Airlines
Virgin Australia Holdings Ltd. (VAH) sold a 10 percent stake to Singapore Airlines Ltd. (SIA) and sought control of two local rivals, creating the biggest challenge to Qantas Airways Ltd. (QAN)'s market leadership in more than a decade.
Singapore Air will spend A$105 million ($109 million) on new Virgin shares, according to a statement today. Brisbane- based Virgin will pay at least A$35 million for 60 percent of budget carrier Tiger Airways Holdings Ltd. (TGR)'s Australian unit and it will bid for all of regional operator Skywest Airlines Ltd. (SXR), according to filings.
Virgin jumped the most in almost two months on the deals, as Chief Executive Officer John Borghetti builds on a strategy of alliances that already includes investments from Etihad Airways PJSC and Air New Zealand Ltd. (AIR) The move adds to pressure on Qantas, which last month announced a tie-up with Emirates in a bid to end losses on international routes.
Read full story: businessweek.com
Posted: 4 Nov 2012 03:43:55