News
Air New Zealand closes Virgin Australia chapter
October 21st 2016
Air New Zealand (Air NZ) has made due on earlier suggestions it was looking to fully dispose of its remaining shareholding in financially-unstable Virgin Australia. Read More » In an announcement to the New Zealand stock exchange, the Star Alliance member said it raised A$65.7 million ($50.4 million) from selling the last 2.5% in Virgin.
In March, Air NZ boss, Christopher Luxon, first said the carrier was considering selling its 25.9% shareholding because it no longer had significant influence over John Borghetti-led Virgin Australia.
“Air New Zealand has sold its remaining shareholding in Virgin Australia in off-market transactions with investors, including Nanshan Group, for total consideration of A$65.7 million,” Air New Zealand said in a brief statement.
Nanshan Group is a privately run Chinese conglomerate that owns Qingdao Airlines, as well as countless investment, real estate and construction entities.
In further Down Under updates, Tigerair Australia, a Virgin Australia associate, plans to add a fourth B737-800 to its fleet from December to address increased demand for domestic low-cost services within Australia, and popular tourist flights to Bali. Tigerair is in the process of switching its A320 fleet to the B737 so as to achieve commonality with its parent.
On the cargo front, Hong Kong’s Cathay Pacific Airways surprised this week when it said it would launch a weekly Hong Kong-Wellcamp (Brisbane)-Melbourne-Sydney B747-8F freighter service in November. Being its first direct link to Asia, the announcement marks a breakthrough for Wellcamp.
