Tag Archives: VHFVI

The High Court in Singapore approves the Virgin Australia acquisition of Skywest Airlines

Virgin Australia Airlines (Brisbane) has received the approval of the High Court in Singapore to acquire Skywest Airlines (Perth). Previously the Australian Foreign Investment Review Board cleared the merger and Virgin Australia on March 13 received approval from Skywest Airlines Ltd shareholders of the proposed acquisition of 100% of the issued share capital of Skywest, pursuant to a scheme of arrangement under the laws of Singapore. The acquisition process is now complete.

Copyright Photo: Peter Gates. Skywest Airlines already operates a fleet of ATR 72-500s on regional routes for Virgin Australia. ATR 72-212A (ATR 72-500) VH-FVI (msn 955) is pictured on the ramp at Brisbane.

Virgin Australia: AG Slide Show

Virgin Australia-Skywest: AG Slide Show

Skywest Airlines: AG Slide Show

Skywest (Australia) logo

Skywest Airlines operates an extensive route network under its own brand in Western Australia.

Skywest (Australia) 3:2013 Route Map

Video:

Virgin Australia makes three bold moves

Virgin Australia Holdings Limited (Virgin Australia Airlines) (Brisbane) is making three bold moves. The company issued the following statement:

Virgin Australia Holdings Limited today announced three transactions designed to accelerate the growth of the business, diversify its earnings and increase competition in Australia.

The transactions include:

  • making a placement of shares to Singapore Airlines (Singapore), which will see Singapore Airlines owning a 10% interest in Virgin Australia Holdings;
  • entering a Share Purchase Agreement to acquire 60% of the existing shares in Tiger Airways Australia (Melbourne) from Tiger Airways; and
  • entering an in-principle agreement with Skywest Airlines (Perth) to acquire 100% of its business.

Virgin Australia Chief Executive Officer John Borghetti said: “The transactions announced today are in line with Virgin Australia’s strategy to become the airline of choice in all markets, in order to diversify our earnings and drive growth opportunities for the business.

“The acquisition of Tiger Australia and Skywest provides Virgin Australia with a strong presence in the budget, Fly-in Fly-Out (FIFO) and regional markets, enabling us to fast-track our expansion in these areas and become a stronger competitor”, Mr Borghetti said.

“These transactions will bring important benefits to Australia, driving growth in jobs, tourism and competition”, Mr Borghetti said.

If approved, following the completion of the transactions, the Virgin Australia Group will expand to 139 aircraft and over 9,000 employees .

Virgin Australia will keep the market updated regarding progress on these transactions.

Meanwhile partner Singapore Airlines (Singapore) has ordered 20 Airbus A350-900s and five A380s and will assign its 20 Boeing 787-9 Dreamliners to subsidiary Scoot (Singapore).

Top Copyright Photo: Lloyd Fox. If approved, Skywest Airlines (Perth) will become a 100% subsidiary of Virgin Australia. The regional carrier is already operating ATR 72-500s for Virgin Australia in their livery. The Skywest brand used for other Western Australia routes is now likely to disappear.

Virgin Australia: 

Skywest Airlines: 

Tiger Airways (Australia): 

Bottom Copyright Photo: Micheil Keegan. Since Singapore Airlines and its Tiger Airways (Australia) subsidiary are now partners with Virgin Australia, it is unclear if Tiger Airways (Australia), a competitor of Virgin Australia, will continue to use the the Tiger Airways brand in Australia or operate now under the Virgin Australia name. Airbus A320-232 VH-VNO (msn 4053) climbs away from Sydney.