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qf789
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Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 5:59 am

There are several news reports going around today about Turkish Airlines being interested in buying HNA's 20% share in Virgin Australia

https://www.executivetraveller.com/turk ... -australia

https://au.finance.yahoo.com/news/turki ... 00937.html

https://www.smh.com.au/business/compani ... 52cpz.html

I find this quite interesting. As it has been rumored for several years TK has wanted to serve Australia offering services to at least SYD and MEL. One issue TK has faced is not having an aircraft available to do an IST-SYD/MEL non stop and it would make a one stop option to IST from Australia unattractive to passengers travelling beyond IST. On top of that the Australia-Turkey bilateral isn't very favorable with only 7 weekly frequencies allowed. I do wonder if this a Plan B for TK so they can enter the Australian market and have VA as its domestic partner. In regards to VA a TK partnership would open up more routes into Europe currently not served by current partner EY.

Thoughts
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xiaotung
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Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 6:16 am

Three news reports but only one source: Bloomberg!
 
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SCFlyer
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Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 6:25 am

Wait and see if any other sources behind Bloomberg starts reporting on the current rumours.
ATM all reports are just using Bloomberg.

Also as said previously, I can't see anything coming out of this (and just reeks of the ongoing VA and SQ saga, with the sporadic mentions from NH, DL and QW), even in the unlikely case of HNA and TK striking up a deal. Even if a deal is struck, there is also the bilateral issues of only 7x weekly (daily) frequencies, as BNE and/or MEL travellers aren't likely to travel to SYD to get to European destinations not served by EY and/or SQ.
 
smi0006
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Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 8:40 am

As a side note - TK must be reasonably serious about serving Australia, my understanding is they are the only member of BARA (board of airline representatives Australia- industry body group) that doesn’t actually fly to AU!

But aside from that, I see no real TK don’t need feed in AU, most traffic will come from MEL/SYD anyway. No need to feed in from the rest of the country. Why not strike up a deal like AC/HA already have?
 
aryonoco
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Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 8:40 am

TK has basically zero presence in the Australian market.

VA is still a loss making operation and I'm yet to see any plans from the new CEO on how he plans to right the ship.

VA's problem is "too many chefs in the kitchen", and I don't see how adding TK to the mix is going to help.

Also, according to the article, TK is concerned about the rise of protectionism, so they are going to invest in an airline in a country where they barely have a presence, and which has had a very liberal aviation policy for decadesand shows no sign of changing course? Doesn't quite add up.
 
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cougar15
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Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 11:51 am

TK....... another candidate for whatever frame project sunrise may one day deliver! Then the maths would work and their network even outshines what EK has to offer!
some you lose, others you can´t win!
 
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TK787
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Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 12:29 pm

Just out; TK says it is not true that they are interested in VA
https://www.airporthaber.com/havacilik- ... amasi.html (in Turkish only)
I will try to find the English version.

Here it is:
https://www.kap.org.tr/en/Bildirim/779001
 
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SCFlyer
Posts: 289
Joined: Tue Oct 23, 2018 11:14 pm

Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 12:39 pm

Well there you go, here's another fizzer.

Likely that VA will remain the status quo for the foreseeable future, especially with Scurrah's (necessary) cost cutting methods, investigating taking the domestic part of the airline closer to its LCC roots and preference for bespoke alliances like his predecessor (example: working with VS/DL to apply for and establish the VS/VA JV), and combined with no sufficient cashflow to join "any" alliance in general, which increasingly likely rules out "any alliance" membership in the longer term.
 
aldrigsomandre
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Joined: Mon Nov 23, 2015 2:30 am

Re: Turkish Airlines eyes HNA 20% stake in Virgin Australia

Thu Aug 01, 2019 5:34 pm

TK denied this with a press release.

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