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Virgin Australia agrees in-principle to acquire Skywest Airlines

30-Oct-2012 10:22 AM

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]