Foreign airlines to raise stakes in Virgin?
The air war is about to take a dramatic new turn with both Singapore Airlines and Etihad looking to raise their stakes in Virgin Australia, air experts say to as much as 20% each.
Speculation has heated up after Singapore Airlines confirmed it is negotiating with Delta Airlines to quit its 49% stake in British carrier Virgin Atlantic, allowing Singapore to focus on its immediate interests in the Asia-Pacific region. Singapore Airlines already holds a 10% stake in Virgin Australia while Sir Richard Branson’s Virgin Group has 23%.
Singapore Airlines can buy only another 9.99% of Virgin without having to launch a full takeover offer. Etihad has to reapply to the Foreign Investment Review Board each time it wants to raise its stake by another 5% points.
Delta has a code-share alliance with Virgin Australia on the US-Australia route.
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