Virgin Australia on Tuesday said it has sold 10 per cent of its business to Singapore Airlines while agreeing to buy a 60 per cent stake in low-cost carrier Tiger Airways Australia.
In a slew of announcements, the country’s second-biggest airline after Qantas also said it was making a A$98.7 million (US$101.9 million) takeover offer for Australian regional carrier Skywest.
Virgin agreed to pay A$35 million (US$36 million) for its holding in Tiger, the loss-making subsidiary of Singapore’s Tiger Airways, while Singapore Airlines bought its stake for A$105 million.
“Singapore Airlines is an important strategic alliance partner of Virgin Australia and we are very pleased to have their support as an investor,” Virgin chief executive John Borghetti said in a statement.
“We believe this investment demonstrates their confidence in our strategy and it enables Virgin Australia to fast track its growth plans.”
The Singaporean airline, which paid 42.88 cents a share for an issue of 245.6 million stock, a 6.8 per cent discount to the last trading price, joins Etihad which also has a 10 per cent stake in Virgin.
Richard Branson’s Virgin Group and Air New Zealand also hold interests in the Australian carrier.