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The Value Of Minority Shareholdings In Airlines  
User currently offlineFlyingroo From Australia, joined Feb 2007, 26 posts, RR: 0
Posted (7 years 1 month 3 weeks 4 days 22 hours ago) and read 1855 times:

With reports of SQ looking to sell its 49% holding in VS I'm posing the question, to what extent is the value of minority holdings in airlines (by other airlines)?

Other than usually booking a substantial profit for the selling carrier coupled wit the yearly profit/dividend distribution from the shareholding, is there any other real gain from these investments for the investing airline?

With the recent sale/announcement of sale of minority shareholdings by airlines (BA/QF, SAS/BD, QF/NZ just to name a few), are airlines coming to the conclusion that without control of the other airline, their money and efforts are better spent concentrating on their own operations, or have some investments actually proven to be beneficial to the holding airline?

2 replies: All unread, jump to last
 
User currently offlineBill142 From Australia, joined Aug 2004, 8447 posts, RR: 8
Reply 1, posted (7 years 1 month 3 weeks 4 days 20 hours ago) and read 1827 times:

It's not always about making money on the investment. The investment may be seen as a precursor to a full take over in the future should the investor see sufficient reason to. The one airline might be looking at feeding traffic from a smaller airline, but may not be able to unless some investment capital is provided. There are a whole range of strategic reasons why an airline might invest in another airline.

User currently offlineVS11 From United States of America, joined Jul 2001, 1111 posts, RR: 0
Reply 2, posted (7 years 1 month 3 weeks 3 days 13 hours ago) and read 1749 times:

In the case of SQ taking a stake in VS, SQ was hoping to benefit from a market that it could not on its own participate in.

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