Singapore Airlines boosts its Virgin Australia stake to 19.9%

Singapore Airlines boosts its Virgin Australia stake to 19.9%

Singapore Airlines will almost double its share of Virgin Australia, taking SQ's strategic stake in its Australian partner to 19.9 percent, up from the previous 10 percent.

The deal is worth some A$122.6 million, and subject to approval from Australia’s Foreign Investment Review Board.

“Increasing our stake in Virgin Australia is another example of Singapore Airlines' deep commitment to the important Australian market” said Singapore Airlines CEO Goh Choon Phong.

“It also demonstrates our support for the ongoing transformation of Virgin Australia, which has created a more competitive aviation market in Australia."

Virgin Australia and Singapore Airlines entered into a long-term partnership in 2011, encompassing codesharing, reciprocal frequent flyer programme benefits and lounge access and co-ordinated schedules to provide seamless connections between flights of each airline.

SQ's stake in Virgin Australia now equals that of Air New Zealand, with Richard Branson's claim reported at around 16 percent, followed by Etihad's 9 percent.

Follow Australian Business Traveller on Twitter: we're @AusBT

David Flynn
David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
 

4 comments

  • tonywills

    tonywills

    24 Apr, 2013 05:15 pm

    OK - time now for International expansion. Singapore, Bangkok, KL, China, Japan. The direct Virgin/Partner options to Asia are limited. SQ is top dollar for Business class which created a lack of the competitive edge needed to grab market share. Etihad only has BNE - SIN. Also waiting with baited breath for the new fleet anouncements - hopefully the 787.

    No member give thanks

  • Colin Steven

    colin5353

    25 Apr, 2013 11:18 am

    So just which alliance group is VA going to end up a part of ?

    No member give thanks

  • Travelator

    travelator

    29 Apr, 2013 07:46 am

    Does anybody know what the maximum is SQ can own in VA? I've lost rack of the rules. I'm guessing SQ are finally making a move of Australian domestic market and going for maximum holding.

    No member give thanks

  • Al Glidden

    AlG

    29 Apr, 2013 09:20 am

    Travelator I believe that no investor can take more than a 20% stake in VA without formally mounting a takeover bid, according to an article in the Sydney Morning Herald. I presume that's why SQ has stopped short of 20%. No idea why you would have to mount a takeover bid with just 20% though.

    No member give thanks

Guest

18 Jul, 2019 05:25 pm

×
×

Forgot Password

If you’ve forgotten your password, simply enter your email address below, then click 'Submit'. We’ll send you an email to re-activate your account and enter a new password.

×

Resend activation email

If you have not received the activation email, simply enter your email address below, then click 'Submit'. We’ll send you an email containing the activation link.

×