Singapore Airlines boosts its Virgin Australia stake to 19.9%
By David Flynn, April 24 2013
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 is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
09 Nov 2011
Total posts 88
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.
Qantas - Qantas Frequent Flyer
03 Jul 2011
Total posts 186
So just which alliance group is VA going to end up a part of ?
QFF Gold QC gold
26 Nov 2012
Total posts 56
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.
04 Nov 2010
Total posts 670
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.
Hi Guest, join in the discussion on Singapore Airlines boosts its Virgin Australia stake to 19.9%