Singapore Airlines increases Virgin Australia stake to 19.9%

VH-YIH Boeing 737-8FE (cn 38712/4070) of Virgin Australia, named “Hastings Point” at Perth Airport – Sat 30 March 2013
VH-YIH Boeing 737-8FE (cn 38712/4070) of Virgin Australia, named “Hastings Point” at Perth Airport – Sat 30 March 2013.
Flight VA4158 from Denpasar (Bali), on final approach to runway 21 at 16:52.
Photo © David Eyre

24 April 2013 © David Eyre

Singapore Airlines is acquiring an additional 9.9% stake in Virgin Australia for A$123 million (US$126 million), taking its total stake to 19.9%, subject to regulatory approvals.

In August 2010, Etihad Airways and Virgin Blue started a partnership arrangement and Etihad acquired around 5% of Virgin Blue, increasing this to 10% in September 2012.

In December 2010, Air New Zealand entered a partnership arrangement with Virgin Australia and on 20 January 2011, Air New Zealand announced it would take a shareholding stake of between 10% and 14.99% in Virgin Blue. In May 2012, it  increased its stake to 19.99% of Virgin Australia.

In 2011, Singapore Airlines and Virgin Australia entered a partnership arrangement, which included codesharing, coordinated schedules and marketing, as well as frequent-flyer arrangements and lounge access. In November 2012, Singapore Airlines purchased an initial 10% stake in Virgin Australia for A$105 million.

Singapore Airlines approached Sir Richard Branson’s Virgin Group about acquiring some of his 22.4% of Virgin Australia just a few days ago and the acquisition has proceeded. Virgin Group’s share in Virgin Australia Airlines has now decreased to around 12.4%.

David Eyre

President, Aviation Association of WA Inc

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