SIA increases stake in Virgin Australia

Singapore Airlines (SIA) has acquired a further 9.9 per cent of Virgin Australia, increasing its total stake in the airline to 19.9 per cent.
 
This equates to 255.5 million shares, bought by SIA at 48 Australian cents per share – a total of A$122.6 million. Australia’s Foreign Investment Review Board has yet to approve the deal.
 
The two airlines entered into a partnership in 2011 (see story here), which started off allowing reciprocal lounge access for eligible customers and more coordinated connections to onward domestic flights within Australia.
 
The partnership was then expanded in 2012 (see here) to include codesharing on SIA-operated flights to and from Singapore, China and South Africa. India and Europe were also added to that list at the end of last year (see here).
 
SIA chief executive officer Goh Choon Phong said the latest share acquisition shows his airline's "deep commitment to the important Australian market.... demonstrates our support for the ongoing transformation of Virgin Australia, which has created a more competitive aviation market in Australia.”
 
For more information visit www.virginaustralia.com or www.singaporeair.com
 
Alex Andersson