Virgin Australia explores a post-Air NZ future. Singapore Airlines favourite to increase investment

Virgin Australia's future is fundamentally sound, but ownership uncertainty was introduced after Air New Zealand flagged the potential sale of either part, or all, of its 25.99% stake in the airline. Air New Zealand CEO, Christopher Luxon, has been the only shareholder to state publicly that Virgin "needs to get profitable", and he was reported to have called for Virgin Australia CEO John Borghetti to resign before his own departure from the board. Chairman Elizabeth Bryan equally, reportedly rejected the call.

The announcement leaves the door open to another airline joining the share register, or for existing shareholders Etihad and Singapore Airlines to increase their holdings - or even a possible full takeover and subsequent delisting of the airline. Singapore Airlines has the most obvious strategic investment in Australia and the funds to easily acquire and recapitalise Virgin and therefore favourite to move. But this is far from certain; no public indications have been made and (though unlikely) it is possible that no buyer is interested.