Virgin Blue's shares fell another 4.1% yesterday as investors reacted to the airline's plans to reduce domestic capacity by 8%, removing up to five aircraft from service, threatening up to 400 jobs. Virgin Blue executives have also accepted a 30% pay reduction, as part of cost cutting measures.
Regional Express, a smaller regional carrier in Australia, told the Sydney Morning Herald that Virgin Blue is "extremely vulnerable" to a takeover bid, whether "hostile or friendly". Rex has acquired a 1.82% "strategic interest" in Virgin Blue, while Rex's Singaporean investors are also reportedly increasing their interest in Virgin Blue.
Asia Pacific selected airlines daily share price movements (% change): 18-Feb-09
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.