Singapore Airlines ‘good fit’ for Virgin Australia
Singapore Airlines could face a battle from a Chinese competitor if it wants Air New Zealand’s cornerstone stake in Virgin Australia, according to analysts.
Singapore Airlines is a strong contender to buy Air NZ’s 26 per cent shareholding in Virgin Australia, currently valued around $338 million.
Already Virgin’s third-biggest shareholder with a 15.6 per cent stake after Air New Zealand and Etihad Airways, Singapore could take its Virgin holding to 41.6 per cent if it decided to buy.
“I think Singapore Airlines would really, really strain hard to become the controlling owner (of Virgin Australia),” Peter Harbison, executive chairman of CAPA-Centre for Aviation, told AAP.
“It would be very, very good for Singapore Airlines, and I suspect it would be very good for Virgin too.”
It would probably benefit the Australian market overall, given Qantas’ hold over the domestic aviation market for the past 20 years, he added.
Air NZ, majority-owned by the New Zealand government, last week said it was looking at a full or partial sale of its Virgin stake to focus on growth opportunities.
Singapore Airlines – which already counts Australia as its second biggest market after Singapore – was tight-lipped on its plans.
“At this stage, we have no information to provide on this subject, beyond reiterating what was announced on 21 March, that we have committed to providing a shareholder loan to Virgin Australia in the context of their capital structure review,” a company spokesperson said.
“Anything else would be speculative at this point.”
Bell Potter analyst John O’Shea expects the stake to be snapped up by Singapore Airlines or a Chinese airline, such as China Southern, China Eastern or China Air.
Should a Chinese airline buy the Virgin stake, it would be bad news for Qantas as it would change the dynamics of the industry, he added.
Mr O’Shea said he couldn’t rule out Etihad increasing its stake in Virgin but thinks it unlikely.
He also thought businessman and Virgin founder Richard Branson was a long shot, given the entrepreneur’s history of selling down his stake in Virgin Australia, which he launched in 2000.
Mr Harbison also doesn’t expect Etihad to increase its 24 per cent stake: its management’s busy enough with 29 per cent and 24 per cent equity interests in Air Berlin and Jet Airways, respectively.
An Etihad spokesperson declined to comment, noting only that its 10-year commercial agreement with Virgin, together with its shareholding and a seat on the board reflected its commitment.
“We fully support Virgin Australia’s strategy and management team. Our relationship has enabled both airlines to significantly improve network reach and to deliver strong revenues from codeshare operations,” the spokesperson said.
Air NZ chairman Tony Carter said the airline doesn’t want a large stake in Virgin, which is reviewing its capital structure after transforming from a budget carrier to a diversified airline group.
An Air NZ spokeswoman on Tuesday declined to comment on what interest it has had so far.
In February, Virgin swung to a net profit of $45.7 million in the first-half 2015/16, helped by a $33.8 million benefit from lower oil prices.
Virgin shares closed unchanged at 36 cents on Tuesday.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
air nz airlines aviation singapore airlines virgin australiaLatest News
Emotional Travellers Choice Conference that wasn’t hard to bear
If Day 1 of the 2024 Travellers Choice Conference in Sydney, the first in the Harbour City for 25 years, was filled with laughter and cocktails then Day 2 of “Travelution” was an emotional roller coaster. Travellers Choice MD and new ATIA chair Christian Hunter opened the three-day conference by announcing two new initiatives. In […]
Accor announces the signing of Sofitel Sapa Hotel and residences
Accor has announced the signing of Sofitel Sapa Hotel & Residences, a landmark luxury development set to bring Sofitel’s French elegance to the highlands of Northern Vietnam. The project is a combination of 176 rooms and 436 branded residences. It is expected to open its doors in 2030, making another milestone in the expansion of […]
ICC Sydney celebrates 100 events in record-breaking year
International Convention Centre Sydney, managed by ASM Global, is set to break the record for number of live events in a single year with 100 shows. The James Blunt concert taking place on 23 November marks the venue’s 100th live entertainment event in a single year. To celebrate this historic achievement, ICC Sydney is giving […]
Last chance to win Globus family of brands’ $1K a Day Giveaway
Agents are reminded they can still enter an unmissable giveaway by making a deposited booking with Globus, Cosmos and Avalon Waterways for departures in 2025. The trade incentive will remain open to agents until 30 November. To take advantage of the offer, agents simply need to make a deposited booking with either Avalon Waterways, Globus […]
Intrepid Travel champions responsible business at UN Global Compact Sustainability Event
Intrepid Travel championed the agenda for responsible business at the United Nations Global Compact’s UNiting Business Live Australia conference this week. During her visit to Australia, UN Global Compact assistant secretary-general, Sanda Ojiambo, met with Intrepid CEO James Thornton, where they discussed the future of sustainable practices in the travel industry. Thornton and Ojiambo discussed […]
Oceania Cruises and Travel Associates launch nationwide cruise takeover
It's no longer 'cruise month' but that doesn't mean the fun has to stop.
NSW Tourism Association announces for finalists for 2024 awards
You know it's well and truly award season when you give up swapping your chicken for the beef with the guy next door.
Dubai unveils the world’s largest beach club
They do things LARGE in Dubai and the world's largest beach club, by bath temp water is the next big thing.
Flight Centre launches new range of branded travel insurance products
What do they say about insurance? You only realise you need it when the unexpected happens.
Women In Travel: Jody Grossfeldt on her return to AAT Kings and making big decisions
What Jody doesn't know about travel, you could probably fit on a very small Post-it Note.
Skypark by AJ Hackett set to launch in Hong Kong!
Once this headland was an escape from a busy life in Hong Kong, but soon to be interrupted by piercing screams.
CLIA study reveals billion-dollar value of cruise tourism in Aotearoa New Zealand
Despite a few hiccups, and a few mussel shells found on the bottom of ships, Kiwi cruising is going gangbusters.
Intrepid’s Leigh Barnes bound for the States to lead American operations
If you can read between the lines you'll realise there's a CMO job going at Intrepid... Get cracking on that CV.
Australian Museum launches new blockbuster Machu Picchu and the Golden Empires of Peru exhibition – not built by aliens
Bongers putting a dampener on the alien theory will disappoint all those fantasising Facebook theorists.
Etihad Airways and Vietnam Airlines sign MoU set to strengthen ties
An MoU is like a deal to do a deal down the track... Talk about commitment issues.
Interactive cocktail o’clock at Dean & Nancy’s on 22 at A by Adina Sydney
It's just gone lunchtime, but if you are still in the office, this story may prompt you to walk out right now.
Marriot International tipped to manage new Caloundra waterfront hotel
Tile floors obligatory please as we always manage to trek sand from beach to bed when staying on the Sunny Coast.
DILKARA Hotel Essentials celebrates Indigenous Australian beauty and heritage
We always like to try fresh new hotel toiletries, particularly an indigenous one.
Avani+ Riverside Bangkok Hotel announces the opening of SIN
We bet you can still hear the traffic horns this high up, given it is Bangkok.
Fusion launches GLOW Bangkok Riverside
Fusion Hotel Group has opened GLOW Bangkok Riverside, a new hotel overlooking the Thai capital’s Chaophraya River from the city’s Dusit district. The modern 5-storey property features 126 rooms and suites, ranging from the Superior Room at 19-22sqm to the 40sqm River Suite. All rooms have either king-sized or twin beds, and are tastefully decorated […]
Nesuto Apartment Hotels launches summer secret offers
Nesuto Hotels and Apartments has launched its summer campaign with a 25 per cent off discount across its 13 neighbourhood properties across Australia and New Zealand. Nesuto’s “unveil summer’s best kept secrets” campaign offer is valid for bookings made from 1 November 2024 until 30 March 2025, for stays until 30 June 2025. In addition […]
Contiki announces massive Cyber Sale with deals on 145 trips around the world
Want to get your 20 year old out of the house for a few weeks? Contiki's got you covered with this sale.
Jetstar ‘Big NZ Sale’ offers one-way fares across the ditch starting from $165
You'd be kicking yourself had you booked a holiday to the Land of the Long White Cloud yesterday!
ATAC’s signs exclusive deal with Helloworld’s Air Tickets for enhanced air consolidation services
Australian Travel Agents Co-operative (ATAC) has appointed Helloworld Travel’s Air Tickets as its sole and exclusive air consolidator following comprehensive market assessment on best value for its members. ATAC chairman Jack Taylor said that the appointment, effective 1 January 2025, reflects the co-operative’s commitment to securing the best value for all members. “ATAC has ambitious […]
Carnival cracks out 1,000kg of lollies in the name of Halloween at OPT
By the time you're reading this, the fun is over. But just know it happened!
Blue Mountains’ Fantastic Aussie Tours turns 50 years young
Surviving floods, fires and pandemics, these really are true blue Aussie tours.
Qatar Airways celebrates 15 years in Australia with native flavours and local ingredients
Only a teenager, and so much more to look forward to.
Envoyage names Infinity Holidays as preferred wholesaler
Just so you know, we will be using these peacock-themed photos for all Envoyage stories because they are fabulous.
Byron’s Raes on Wategos collab with fashion brand Matteau to launch resort wear collection
Hopefully the quality of jim-jams in our luggage on the trip back home will be improved with this collab.
Helloworld TV is back for a brand-new season!
Slight disappointed this doesn't involve Helloworld staff acting out the plot of Neighbours.
Sydney to Bali return for under $500 in Virgin’s ‘Unbooleviable’ 24 hour sale
It's times like this that we feel validated for not choosing a career in graphic design.
Australians can board MSC Magnifica on its 2025 World Cruise
This 47-night journey out of Melbourne will mean you will have to pack plenty of undies.
Mercure Hotels’ unique culinary concept of 1000-Hours of Local Flavours
Thank goodness we bought those shorts with the elastic waistband.
Blending history, culture and culinary delights, Malta is a year-round gem waiting to be discovered
They say Malta is small, but it packs a punch, like a shot of coffee with a side of history.
HBX Group bolsters global sales and MEAPAC teams with slew of promotions
It is always anxiety-inducing when you get called in to speak to the manager. Are you getting promoted or chopped?
Thai Airways and Turkish Airlines to use SES Open Orbits for high speed internet in the sky
Before you know it, you'll be getting in trouble for not replying to work emails while cruising at 30,000 feet.