Virgin Australia reached (30-Oct-2012) an in-principle agreement to acquire 100% of partner Skywest Airlines. The deal is subject to regulatory, legal and shareholder approvals, including approval by the Australian Competition and Consumer Commission and the Securities and Industries Council of Singapore. Under the deal, Virgin Australia will offer Skywest shareholders AUD0.45 per share with AUD0.225 per share to be paid in cash and 0.53 new Virgin Australia shares for every Skywest Airlines share. Virgin Australia CEO John Borghetti said if the transaction was approved it would enable Virgin Australia to fast-track its growth in the fly-in-fly-out (FIFO) and regional markets and increase competition. Virgin Australia and Skywest launched a regional network partnership in Oct-2012. Under the agreement, Skywest would become part of the Virgin Australia brand, but would continue to operate under its current Air Operator’s Certificate (AOC) with its own CEO and management based in Western Australia. [more - original PR - Virgin] [more - original PR - Skywest Airlines]
Virgin Australia agrees in-principle to acquire Skywest Airlines
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.
South Pacific aviation markets will be defined by China’s expansion
The nature of the South Pacific's geography makes finding the right partners for its airlines essential for their survival in international long haul markets – as most are.
The region is characterised by relatively liberal access regimes and by partnerships of varying levels – in New Zealand especially, where Air New Zealand’s international network is dominated by JVs. Virgin Australia has built a ‘virtual alliance’ alongside HNA, Singapore Airlines, Etihad and Delta, with very little of its own metal flying outside Australia. At Qantas Group, international performance has improved markedly following its Emirates partnership, as its operating focus has shifted from Europe toward Asia and North America, with local JVs, and close partnerships with American Airlines and China Eastern continuing to grow and mature.
For all airlines in the region, the China market will define much of the growth over the coming decade. (This report is taken from the Jul/Aug-2016 issue of CAPA's Airline Leader)