CBRboy
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Etihad Wants Branson Stake In Virgin Australia

Fri Feb 10, 2012 1:19 pm

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.
 
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readytotaxi
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RE: Etihad Wants Branson Stake In Virgin Australia

Fri Feb 10, 2012 1:26 pm

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.
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bastew
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RE: Etihad Wants Branson Stake In Virgin Australia

Fri Feb 10, 2012 1:35 pm

Wouldnt be suprised if they want to buy a slice of Virgin Atlantic as well.
 
jfk777
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RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 12:55 am

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.
 
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aerorobnz
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RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 1:52 am

Quoting jfk777 (Reply 3):
Ethiad should make a call to Singapore Airlines House near Chnagi Airport. They own 49% of Virgin Atlantic.

I agree. That's the way to do it..

Would be interesting if they were to buy SRBs share. VA would then be owned by 3 different airlines, but all with commercial tie ups..
Flown to 120 Airports in 44 Countries on 73 Operators. Visited 55 Countries and counting. Wanderlust is like Syphilis, once you have the itch it's too late for treatment.
 
EY460
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RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 5:51 am

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

RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 5:57 am

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.
 
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lightsaber
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RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 6:13 am

Quoting bastew (Reply 2):
Wouldnt be suprised if they want to buy a slice of Virgin Atlantic as well.

Is this how we gain the 'Virgin Alliance?' Etihad buying a chunk of all of them?   

Lightsaber
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EY460
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RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 6:14 am

Quoting kiwiandrew (Reply 6):

Thank you for the explanation. It makes sense. It would also be difficult for bilaterals if the company wasn't Australian.
 
alangirvan
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RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 6:36 am

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
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RE: Etihad Wants Branson Stake In Virgin Australia

Sat Feb 11, 2012 11:29 am

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.

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