Virgin Australia Inks Several Deals

Virgin Australia did sealed several transactions in an effort to boost its business.  Singapore Airlines has just purchased a 10-percent stake in Virgin Australia.

Virgin Australia also bought a 60-percent stake in Tiger Airways and is planning to spend about $99 million to take over regional carrier Skywest.

Singapore Air is shelling out about $105 million for the purchase of Virgin Airlines. Singapore Air is the second-largest carrier in the world. According to Virgin Australia, the investment would be earmarked for fund growth.

Virgin Australia, meanwhile, will shell out about $35 million for its purchase of 60 percent of Tiger Airways’ Australian operations. Singapore Air owns about 33 percent of the budget airline.

Virgin Australia has also announced that it will place a bid for Skywest Airlines.

Other shareholders of Virgin Australia include the Virgin Group, Etihad Airways, and Air New Zealand. Virgin Group, owned by Richard Branson, owns about 26 percent, Etihad has 10 percent, and Air New Zealand has 20 percent.

Virgin Australia’s investment on Tiger Australia would be used to increase the number of Tiger’s fleet from 11 to 35. The increase in the number of fleets is expected to be completed by 2018.

Koay Peng Yen,the chief executive of Tiger Airways, expressed confidence in the deal, saying it was a significant step forward for Tiger Airways.

He added that the joint venture would help Tiger Australia become stronger and more competitive.