flyingroo
Posts: 11
Joined: Fri Feb 23, 2007 9:13 pm

The Value Of Minority Shareholdings In Airlines

Tue Jul 10, 2007 7:13 pm

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?
 
bill142
Posts: 7861
Joined: Wed Aug 04, 2004 1:50 pm

RE: The Value Of Minority Shareholdings In Airlines

Tue Jul 10, 2007 8:59 pm

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.
 
VS11
Posts: 892
Joined: Mon Jul 02, 2001 6:34 am

RE: The Value Of Minority Shareholdings In Airlines

Thu Jul 12, 2007 3:47 am

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.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos