Air NZ is lifting its stake in Virgin Australia. (Rob Finlayson)
Air New Zealand says it has reached agreement to acquire a further three per cent shareholding in Virgin Australia, which would take its stake in the Australian number 2 carrier to 22.99 per cent, and says it will consider acquiring another three per cent “to the extent it is permitted to do so under the Australian Corporations Act”.
“The additional interest affirms Air New Zealand’s strong belief and confidence in Virgin Australia and the strategy it is pursuing under the leadership of John Borghetti and his team,” Air New Zealand said in a June 6 statement.
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Air New Zealand notes the purchases are subject to FIRB (Foreign Investment Review Board) and ACCC (Australian Competition and Consumer Commission) approval, and that the ACCC has advised it that it intends to conduct public enquiries on the planned increased holdings in Virgin Australia.
The New Zealand carrier says it “is not seeking a position on the board of Virgin Australia” and “nor does it have the intention of obtaining control of Virgin Australia”.
They lost out big dollars in Ansett calapse pretty sure they will be safe this time…..
Ron
says:
I wonder if that last paragraph should have the word “yet” added to the end of it. I really hope VA doesn’t become Ansett Mk2 in the hands of Air NZ.
Mal
says:
Negative nellies. Why even consider what “Air NZ did with Ansett.” You ignore completely News Corp., and the impact they had on Ansett. Air NZ should never have got involved as they had no visibility into that business – arguably a very poor investment decision. The VA investment is completely different. The fact that all Air NZ’s management, strategies, ownership and governance have changed completely should be noted. As should the success that Air NZ is enjoying. They are on course to make $230m+ this year. They are leaving VA to manage their own business. Air NZ are innovators and are leading edge in many regards. With VA management running their business and NZ running theirs, I suspect we are going to see continued innovation and success.
Red Barron
says:
How’s is what I said a negative Nellie. All I said is that I’m sure they are safe in this new investment with Virgins already success.
Nikee
says:
Red Baron,
It’s quite clear that there is sarcasm in your first post, hence the “negative nellies” comment.
iscover
Red Barron
says:They lost out big dollars in Ansett calapse pretty sure they will be safe this time…..
Ron
says:I wonder if that last paragraph should have the word “yet” added to the end of it. I really hope VA doesn’t become Ansett Mk2 in the hands of Air NZ.
Mal
says:Negative nellies. Why even consider what “Air NZ did with Ansett.” You ignore completely News Corp., and the impact they had on Ansett. Air NZ should never have got involved as they had no visibility into that business – arguably a very poor investment decision. The VA investment is completely different. The fact that all Air NZ’s management, strategies, ownership and governance have changed completely should be noted. As should the success that Air NZ is enjoying. They are on course to make $230m+ this year. They are leaving VA to manage their own business. Air NZ are innovators and are leading edge in many regards. With VA management running their business and NZ running theirs, I suspect we are going to see continued innovation and success.
Red Barron
says:How’s is what I said a negative Nellie. All I said is that I’m sure they are safe in this new investment with Virgins already success.
Nikee
says:Red Baron,
It’s quite clear that there is sarcasm in your first post, hence the “negative nellies” comment.