Virgin Australia announces proposed new structure
Virgin Australia Holdings (VAH) announced (23-Feb-2012) a proposed new structure which will ensure the company will continue to comply with Australia's Air Navigation Act which limits foreign ownership of Australian international carriers to 49%. "The proposed new structure involves creating a new unlisted entity Virgin Australia International Holdings Pty Ltd (VAIH) which will hold VAH's international airlines", as follows:
- VAIH will be owned by existing VAH shareholders and have a majority independent board of directors;
- VAIH will be comprehensively serviced and funded by VAH, and therefore will not involve any visible changes from a consumer perspective; and
- VAIH will mean business as usual from a staff perspective in terms of the day-to-day running of the airline.
Shares in VAIH will not be able to be traded and will only be sold under limited circumstances. Under the structure, VAH will provide VAIH services including aircraft, crew, maintenance and administration services, with VAIH charged a management fee in return. [more - original PR] [more - CAPA Analysis]