none

CHINESE AVIATION COMPANY BUYS 13% STAKE IN VIRGIN AUSTRALIA

31-05-2016
by 
in 

 Virgin Australia has signed off on a deal that gives HNA Aviation, a Chinese Company, 13% stake in the Australian airline.

HNA's main brand is Hainan Airlines, which has a range of investments in non-Chinese carries, as well as operations in a range of carries across China.

The company is investing $159 million into Virgin, and buying its stake at 30 cents per share, a 7.1 per cent premium from the last trading period of 28 cents a share.

Virgin said that HNA is committed to raising that stake to 19.99 per cent and it is supportive of the Australian airline's capital structure review, as Air New Zealand has made indication that it will be selling all of its shares in Virgin Australia. 

At the moment Virgin Australia's major share holders are: Air New Zealand (nearly 26 per cent), Etihad (24.2 per cent), Singapore Airlines (22.75 per cent) and Virgin Group (just under 10 per cent).

This deal has been indicated to creata direct line of flight from Australia to China, although chief executive John Borghetti declined to comment on which cities would be on the list. 

"There is a lot of attraction to operating into Beijing, for example, there is also a lot of attraction in operating to Hong Kong, but that's still being worked through," he told reporters in a telephone briefing.

"There are also some secondary cities we're looking at ... wherever the operations are to it will be a significant schedule, it won't be just one or two flights a week."

Related news & editorials

  1. 14.06.2018
    14.06.2018
    by      In
    While much has been said and written about skills shortages, both in Australia and worldwide, organisational consultancy Korn Ferry is warning of an all-embracing talent crunch, which will have more severe implications than any specific gap in the skills set.
    In its latest “Future of work” survey,... Read More
  2. 01.06.2018
    01.06.2018
    by      In
    Australian manufacturing industry continues to perform, with the Ai Group’s Performance of Manufacturing Index easing slightly to 57.5 in May, marking the 20th consecutive month of growth. But while the current “bull run” is beginning to draw comparisons with the sustained growth of the early years... Read More
  3. 08.05.2018
    08.05.2018
    by      In
    With noises from both sides of politics about company tax reform, this year could well be the last chance for small to medium manufacturing enterprises to take advantage of the ATO’s Instant Asset Write-Off Scheme.
    For the benefit of those who might have forgotten, the scheme, which was originally... Read More
  4. 08.05.2018
    08.05.2018
    by      In
    Australian manufacturing continued its run of growth in April 2018, with the Ai Group’s Performance of Manufacturing Index coming in at 58.3 for the month – a positive figure, albeit down 4.8 points from the all-time record set in March. The figures mark the 19th consecutive month of expanding or... Read More