Virgin rumoured to be mulling Air NZ merger and Rex acquisition

Virgin rumoured to be mulling Air NZ merger and Rex acquisition

Virgin Australia may be considering a merger with Air New Zealand, while simultaneously mulling acquiring Rex, according to a report in the Australian.

According to the News Corp. masthead, sources have revealed that Virgin and Air New Zealand have held discussions about a merger, with investment banks Goldman Sachs and Jerden allegedly offering the Aussie carrier assistance.

The plan would see a back door dual listing here and across the Tasman of Virgin into Air New Zealand, forming an expanded trans-Tasman network for both companies.

However, Air New Zealand chair Dame Therese Walsh has released a statement claiming it had not been approached and is not in discussions with any parties regarding a potential merger transaction.

As for the Rex rumours, Rex said in a statement that it is “up to Virgin Australia to comment on this matter”.

Virgin, however, declined to comment on the matter when approached by Travel Weekly. 

The Australian noted that Virgin would only buy Rex if it returned to servicing only regional routes, not to mention Rex’s reliance on 40 per cent of its feeder traffic from Qantas, which would surely end if Virgin were to purchase the airline.

The news came as Rex’s proposed acquisition of National Jet Express, the regional arm of Cobham, received the green light from the Foreign Investment Review Board (FIRB).

Following this milestone approval, the airline said the sale should be completed on 30 September 2022.

Featured image: Virgin Australia Group CEO Jayne Hrdlicka

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