Turkish Airlines eyes stake in Virgin Australia

Turkish Airlines could become Virgin Australia's newest stakeholder as it looks to boost growth in the Asia-Pacific region.

By Businessweek, August 1 2019

Turkish Airlines is interested in HNA Group’s minority stake in carrier Virgin Australia, as it seeks growth in the Asia-Pacific region, according to people familiar with the matter.

Turkey’s national flag-carrier, or Turk Hava Yollari AO as it’s formally known, is among companies looking at HNA’s 20% stake in the Australian airline, said the people, asking not to be named because the discussions are private. Deliberations are preliminary and may not result in a deal, the people said.

A Turkish Airlines spokesman didn’t return calls or mailed questions seeking comment, while a representative for HNA Group declined to comment.

Turkish Airlines has been evaluating potential investments in other airlines to help safeguard expansion if the rise in protectionism presents hurdles to growth.

The airline plans to boost its fleet size to almost 500 aircraft by 2023 including 25 Boeing 787-9 Dreamliners. It took delivery of the first Dreamliner in June as part of a deal for 40 of the advanced long-range jets, with the Airbus A350 to follow in 2020.

The troubled Chinese conglomerate HNA was open to offers for its stake in Virgin Australia as part of its efforts to cut debt, Bloomberg News reported in August last year. The Chinese firm is selling assets after racking up one of the nation’s biggest corporate debt loads in a global acquisition spree.

Singapore Airlines and Nanshan Capital, which each control about a fifth of Virgin Australia’s shares, were among the companies weighing a bid, people familiar with the matter said at that time. 

aussie-flyer

aussie-flyer

08 May 2017

Total posts 10

A 787 could easily make it from Istanbul to Perth.....

Madhatter49

Madhatter49

Virgin Australia - Velocity Rewards

11 Dec 2016

Total posts 38

What I like about this is if they do this. Then both Turkish and Singapore are Star Alliance members and could pull Virgin into star with them. If they can get other Star members to agree.

Personally I'd like to see and think it's more likely at the moment for Virgin to join Skyteam though.

Either way, they really need to get into alliance to become truly competitive with Qantas.

DanV

DanV

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 105

Been reported in the Turkish media (via Airporthaber (Turkey)) that TK had officially dismissed the VA rumours as "fake news".

It's turning out to be another fizzer, like the ongoing EY, SQ, HNA sagas.


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