Virgin moves ahead with restructure

written by australianaviation.com.au | March 16, 2012
Virgin Australia 777-300ER VH-VPE. (Damien Aiello)

Virgin Australia says all conditions for its ownership restructure have been met and the plan will go ahead over the next two weeks.

Announced last month, the restructure will see Virgin’s international business split off to become a separate, unlisted company owned by current shareholders. That will free Virgin’s domestic business from government regulations that limit foreign ownership of Australian international carriers to 49 per cent, opening the way for increased overseas investment.

Virgin said it will issue current  shareholder a stake in the new international business. It assigned those shares a nominal value of 0.0001 cents. The airline said the restructure will be complete by March 30.

Advertisement
Advertisement

Qantas has challenged the plan, saying the new international business would be a separate entity in name only.

Did you know that Australian Aviation Magazine comes digitally? Subscribe to Australian Aviation’s digital magazine for just $59.95 a year! Our app is available on mobile, tablet and PC devices! Subscribe now at australianaviation.com.au.

Each day, our subscribers are more informed with the right information.

SIGN UP to the Australian Aviation magazine for high-quality news and features for just $99.95 per year