Category: Air Transport / Company News

Air New Zealand may ditch Virgin Australia shareholding

Wednesday, 30 Mar 2016 09:31:03 | Michael Janda

Virgin Australia may soon lose its biggest shareholder, with Air New Zealand looking to sell its stake in the airline.

New Zealand's flag carrier currently owns just over a quarter of Virgin Australia, but has today revealed it is looking at selling some or all of that stake.

Air New Zealand is employing First NZ Capital and Credit Suisse to advise it on options with respect to its Virgin stake.

However, the airline looks determined to at least substantially reduce its holding, with its chairman Tony Carter indicating to his Virgin Australia counterpart Elizabeth Bryan that his company does not want a large minority equity position.

Instead, Air New Zealand wants to focus on its own growth opportunities, and plans to unlock the cash tied up in its Virgin Australia shareholding for other uses.

While looking to unshackle itself from Virgin Australia in an ownership sense, Air New Zealand's chief executive Christopher Luxon said it will remain a close partner operationally.

"We look forward to continuing our partnership on the Tasman alliance, providing customers of both airlines with the most comprehensive trans-Tasman network," he noted in a statement.

Mr Luxon will resign from Virgin's board, effective immediately, as a result of today's announcement.

Air New Zealand said it will coordinate the review of its investment in Virgin Australia with that airline's previously announced review into its capital structure and funding options.

Virgin Australia shares were placed on a trading halt pending the announcement, while Air New Zealand's shares were up 1.75 per cent to $2.90 by 12:30pm (AEDT).



 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend