VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

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re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

Wow.

Say what you like about Tiger as a franchise, but VA's presence can only improve their operation. I don't see VA replacing their own services for TT as QF did when JQ was born, rather, mixing them in similar to how JQ are now (offering competing services MEL-SYD-BNE etc.) In particular, I don't see FNQ getting palmed off to TT given the lounge investments up there.

Logistics aside, I doth my cap to John Borghetti. He has executed, in a stupidly short time frame, a strategy that has taken VA from awkwardly-positioned battler, to a fully-fledged worldwide network.

It's an absolutely stunning business play.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

Does mean Virgin is now very much foreign owned with Branson, Air NZ and Singapore on the register.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

moa999 said:
Does mean Virgin is now very much foreign owned with Branson, Air NZ and Singapore on the register.
Click to expand...
ROFL, Virgin was 100% foreign owned when it started (Branson took the risk and set it up, off his own back), so not sure how the reduction in foreign investment, to the level it is now, is relevant. :confused:
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

moa999 said:
Does mean Virgin is now very much foreign owned with Branson, Air NZ and Singapore on the register.
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Etihad has an equity chunk too. And DJ was foreign owned at the start!

Remember VA's corporate structure was overhauled specifically to allow greater foreign investment.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

moa999 said:
Does mean Virgin is now very much foreign owned with Branson, Air NZ and Singapore on the register.
Click to expand...

It's an interesting point of note, but that said I think the travelling public do not really care at all.

Virgin is not imitating Ansett in any way so as it stands, it's not a big deal to most people.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

stuartfaz said:
Say what you like about Tiger as a franchise, but VA's presence can only improve their operation. I don't see VA replacing their own services for TT as QF did when JQ was born, rather, mixing them in similar to how JQ are now (offering competing services MEL-SYD-BNE etc.)
Click to expand...

This shouldn't matter anyway as it'll be a LCC to a LCC, similar service offerings, only difference maybe is lack of FF scheme (velocity) on Tiger.

:p puts flame suit on..
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

moa999 said:
Does mean Virgin is now very much foreign owned with Branson, Air NZ and Singapore on the register.
Click to expand...

Virgin is split into two entities, VA Holdings (the domestic airline and listed holding company) and VA International Holdings (the international airline and unlisted holding company).

VAH, as a domestic airline, can be 100% foreign owned. Right now, it's about 50%, with investment from NZ, EY, SQ, DL et al.

VAIH, as an Australian international airline, must be 51% owned by Australians. Before today, I believe it was 100% owned by VAH. The 10% of Virgin that Singapore bought today is 10% of VAIH, not VAH.

So in short, SQ owns 10% of Virgin's international operations directly, as well as owning a percentage more through their holding of VAH.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

cmon0005 said:
This shouldn't matter anyway as it'll be a LCC to a LCC, similar service offerings, only difference maybe is lack of FF scheme (velocity) on Tiger.
Click to expand...

250px-Human_Torch.png


Flame on!
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

stuartfaz said:
VAIH, as an Australian international airline, must be 51% owned by Australians. Before today, I believe it was 100% owned by VAH. The 10% of Virgin that Singapore bought today is 10% of VAIH, not VAH.

So in short, SQ owns 10% of Virgin's international operations directly, as well as owning a percentage more through their holding of VAH.
Click to expand...


I don't believe this to be the case. The SQ investment is for shares in VAH.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

stuartfaz said:
Flame on!
Click to expand...

hehe, I'm just having a bit of fun :)

For the record up until recently had to fly a lot with work MEL-SYD on VA, the thing that turned me against them was out of 10 VA flights in 2 months 10 were delayed (none weather related all just VA's own fault) and their Flexi fare food sucks really bad, and their 'new' 737-800 cabins look tacky.
Since using QF again for work flights 6 out of 6 flights either departed on-time or early, and their NGCI is great.
 
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re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

stuartfaz said:
VAH, as a domestic airline, can be 100% foreign owned. Right now, it's about 50%, with investment from NZ, EY, SQ, DL et al.

.
Click to expand...

Its a little more than 50% before SQ, with Virgin Group at 26%, Etihad at 10%, and NZ at 20%.
 
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re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

OK, so with Virgin taking 60% of Tiger, and of course QF/JQ, I am trying to think of routes where there are now 3 independent airlines competing in the Australian domestic market. I think Mildura and Ballina share those owners, where DJ/ZL/QF share MEL-MQL and DJ/ZL/JQ share SYD-BNK. Any others?
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

What exactly are VA getting from the Skywest purchase ? What does their fleet consist of ?
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

stuartfaz said:
Wow.

Say what you like about Tiger as a franchise, but VA's presence can only improve their operation. I don't see VA replacing their own services for TT as QF did when JQ was born, rather, mixing them in similar to how JQ are now (offering competing services MEL-SYD-BNE etc.) In particular, I don't see FNQ getting palmed off to TT given the lounge investments up there.
Click to expand...

It seems they will remain very separate entities which is excellent news:

Virgin Australia buys into Tiger, pits it against Qantas' Jetstar - Flights | hotels | frequent flyer | business class - Australian Business Traveller

"In effect, Tiger will be run as a separate business with a separate board... it will not be polluted in any form of distraction and will remain true to the from the low-cost carrier concept."Borghetti stressed that that Virgin and Tiger will not codeshare flights, unlike the current flight sharing between Qantas and Jetstar.
"We have to make distinct separation in marketing, and manage consumer expectations on what they're booking."
However, he wouldn't be drawn to comment on if Velocity points might be earned on Tiger flights, saying that while "Velocity is a very separate program to Tiger, we'll talk about that going forward, but we're not ready to talk about that yet."
Click to expand...
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

Major said:
What exactly are VA getting from the Skywest purchase ? What does their fleet consist of ?
Click to expand...

around 20 fokkers.
The Virgin ATR's
and 1 a320
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

Jousams said:
around 20 fokkers.
The Virgin ATR's
and 1 a320
Click to expand...

28 aircraft:

1 A320
1 737
10 F100
8 F50
8 ATRs

I wonder if Alliance is next, giving them a boost in QLD to match WA?
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

Major said:
What exactly are VA getting from the Skywest purchase ? What does their fleet consist of ?
Click to expand...

I'd imagine that VA also get instant access to a lucrative part of the mining (or other heavy industrial operation) charter business that is currently operated by Skywest.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

oz_mark said:
I don't believe this to be the case. The SQ investment is for shares in VAH.
Click to expand...

You are correct, my apologies. I got different info this morning and just read the ASX release.
 
re: VA invests in Tiger, buys Skywest, SQ investment & ACCC Concerns

Perhaps other smaller operators like Rex and Brindabella may at some point sell out to the bigger players.
 
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