Singapore Airlines (SIA) has bought a 10% stake in Virgin Australia for A$105 million in a bid to protect its position in the Australian market following the new relationship between Qantas and Emirates Airlines.
Singapore Airlines, Air New Zealand and Etihad are now Virgin Australia shareholders.
Virgin Australia has also launched a A$93 million cash and share offer to acquire Skywest and has offered A$35 million for a 60% stake in the Australian operations of Tiger Airways.
Chief executive John Borghetti is pressing forward with such broad deals in order to reposition Virgin as direct competitor to Qantas. He said: “The acquisition of Tiger Australia and Skywest provides Virgin Australia with a strong presence in the budget, Fly-in Fly-out and regional markets, enabling us to fast-track our expansions in these areas and become a stronger competitor.”
He added: “This gives us real scale. We are a formidable airline now.”
SIA buys 10% of Virgin Australia; bids for Skywest and Tiger Airways
