Virgin’s big sky buys continue, acquires Skywest, sells 10% to Singapore Airlines
Virgin Australia’s big sky buys continue.
It has announced its intention to buy 100% of WA based Skywest, which operates ATR turbo-prop flights for Virgin Australia.
Virgin Australia has also sold 10% of Virgin Australia Holdings, the company that also owns its international division, to Singapore Airlines for $105 million.
This means Singapore Airlines, on its 10% equity, joins Air New Zealand with 19.9%, and Etihad, with 10%, and Richard Branson’s family company, the Virgin Group, with 26%, in the suddenly rapidly growing Virgin Australia enterprise.
On paper, this appears to be a cost neutral set of strategic changes for Virgin Australia, with the proceeds of the Singapore Airlines equity paying for the Tiger Australia deal and the commitment to expanding its operations, although no exact figure is yet known for the Skywest deal as it involves a cash and VAH shares offer, which requires approvals in both Australia and Singapore.
There will be further reports later today.