cbrboy From Australia, joined Apr 2007, 148 posts, RR: 0 Posted (3 years 4 months 3 weeks 4 days 11 hours ago) and read 5615 times:
Etihad CEO James Hogan is reported as saying he has told Sir Richard Branson that Etihad would be interested in purchasing Branson's 26% stake in Virgin Australia. Virgin Austrlaia is a publicly listed company but Etihad is currently prevented from taking a substantial shareholding by Australian legislation which restricts foreign ownership to 49%. Air New Zealand owns 20% of Virgin Australia.
jfk777 From United States of America, joined Aug 2006, 8985 posts, RR: 6
Reply 3, posted (3 years 4 months 3 weeks 3 days 23 hours ago) and read 4806 times:
Quoting bastew (Reply 2): Wouldnt be suprised if they want to buy a slice of Virgin Atlantic as well.
Ethiad should make a call to Singapore Airlines House near Chnagi Airport. They own 49% of Virgin Atlantic.
Quoting readytotaxi (Reply 1): The Great Bearded One is a business man, if the price is right and it suits his plans it would free up some cash for another venture.
SRB would have to get one hell of an offer since he once lost control of Virgin Blue when Patrick Corp purchased it. Virgin Australia has been the only truly successful Virgin airline outside of the UK, Virgin America is still a work in progress.
EY460 From United States of America, joined Jan 2012, 274 posts, RR: 0
Reply 5, posted (3 years 4 months 3 weeks 3 days 18 hours ago) and read 4476 times:
I thought that the foreign ownership rule was valid only for Qantas. As far as I know there is no limitation for other carriers after the Australian liberalisation. For this reason Singapore Airlines was able to start Tiger Australia. And at the very beginning, before the entry of Patrick Corporation, wasn't Virgin Blue a foreign-owned company? Is the ownership limitation caused by the fact that the company is now public-listed? I'm very confused as I've recently studied the Australian situation during my university course.
kiwiandrew From New Zealand, joined Jun 2005, 8743 posts, RR: 13
Reply 6, posted (3 years 4 months 3 weeks 3 days 18 hours ago) and read 4467 times:
Quoting EY460 (Reply 5): As far as I know there is no limitation for other carriers after the Australian liberalisation.
There is no limitation for purely domestic operators ( Tiger Airways Australia does not operate internationally - Tiger services into Australia are operated by a different part of the Tiger group). Virgin Australia operates internationally which means that technically there is a cap of 49% foreign ownership.
Moderation in all things ... including moderation ;-)
alangirvan From New Zealand, joined Nov 2000, 2106 posts, RR: 1
Reply 9, posted (3 years 4 months 3 weeks 3 days 18 hours ago) and read 4369 times:
AirNZ is one of the New Zealand State Owned Enterprises which is up for sale this year, with the Power Companies. So, Etihad could buy as much of AirNZ as a foreign investor is allowed. (The Government will only be selling 49% of the SOEs).
So EY could have investments in both Virgin Australia and AirNZ, but with out a controlling interest.
Now, Etihad and Qatar have decided they want to be Merchant Banks, as well as airlines. That is what Singapore Airlines did. Everytime a national airline was coming up for privatisation, Singapore Airlines was often mentioned as being 'interested - they nearly bought shares in China Airlines among others. The Singapore Airlines investment in Virgin Atlantic may not have made much money for them, but whether they would want to sell stakes in Virgin Australia or Virgin Atlantic to Etihad, which is now becoming a major competitor to Singapore Airlines is something to wonder about.
cbrboy From Australia, joined Apr 2007, 148 posts, RR: 0
Reply 10, posted (3 years 4 months 3 weeks 3 days 13 hours ago) and read 3659 times:
Quoting kiwiandrew (Reply 6): There is no limitation for purely domestic operators ( Tiger Airways Australia does not operate internationally - Tiger services into Australia are operated by a different part of the Tiger group). Virgin Australia operates internationally which means that technically there is a cap of 49% foreign ownership.
Quoting EY460 (Reply 8): It would also be difficult for bilaterals if the company wasn't Australian.
Yes, that is the nub of the issue. For Virgin Australia to be an Australian international carrier it must be majority Australian-owned. They have only recently completed the integration of Virgin Blue (Australian domestic), V Australia (international) and Pacific Blue (New Zealand) into the one entity. Otherwise it would have been open to Etihad to buy a stake in the domestic operation regardless of other foreign shareholders.