Tuesday, 23 April 2013

Singapore Airlines invests another 9.9pc into Virgin Australia

Singapore Airlines invested another 9.9pc into Virgin Australia, tallying up to a shareholder percentage of 19.9pc, which is making the carrier its joint largest shareholder.

The airline has agreed to take another 9.9 per cent of Virgin Australia in a deal that will see it purchase 225 million shares at 48 cents from Richard Branson’s Virgin Group. The deal, which is still subject to Foreign Investment Review Board approval, is valued at $122.6m

“Our partnership with Virgin Australia has been going from strength to strength, offering a wide range of consumer benefits,” said Singapore Airlines chief executive Goh Choon Phong.
“Increasing our stake in Virgin Australia is another example of Singapore Airlines’ deep commitment to the important Australian market. It also demonstrates our support for the ongoing transformation of Virgin Australia, which has created a more competitive aviation market in Australia."

Singapore Airlines and Virgin Australia have had a marketing alliance since 2011 and has built up a reputable brand. Both airlines have stated that they have a good relationship with each other and Singapore is trying to keep its presence within Australia as they still are the major shareholder of Tiger Airways.

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