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Flotation Of Virgin Blue

Tue Apr 16, 2002 5:12 am

source:aol your money(15.4.2002)


SIR Richard Branson says he may list his cut-price Virgin Blue airline on the Australian Stock Exchange within two years.

He's also hoping to grab up to half of Australia's domestic business following the collapse of Ansett, the country's second largest carrier.

Ansett was put into voluntary administration in mid-September and later grounded, leaving Qantas the dominant domestic airline with about 85% of passengers.

"Eighteen months ago Virgin Blue didn't exist. Now we have 1,500 people working for us and we've 15% of the market and it is growing extremely rapidly," Sir Richard says.

Last month, Australian transport company Patrick bought a 50-percent stake in Virgin Blue for $260 million Australian dollars (£96.6m).

Branson says the cash injection will help fund the airline's public float.

Points to consider:

*Surely of 50% is owned by another company then they will have to agree to the float?

*wouldnt it be fair to say this smacks of the singapore deal for virgin atlantic, branson selling off a stake in an airline to raise money, its the same with his other businesses as well.

*the question is with rumours of virgin blue going international it is wise to float at a risky time?

It is amazing what can be accomplised when nobody takes the credit