Posted by: Bruce | April 18, 2020

Virgin Australia rescue deal by Chinese airlines: 7NEWS.com.au – April 18,2020

I saw the above headline on Twitter earlier today. So he we go again?

https://7news.com.au/news/aviation/coronavirus-virgin-australia-eyed-by-three-chinese-airlines-for-rescue-deal-c-984678

See the source image

Another Aussie company in trouble and Chinese buyers ready to swoop for the fire sale.

Wondering just how Australian Virgin Australia really is, I looked around and the most recent information I could find is an article from SBS.

https://www.sbs.com.au/news/virgin-australia-s-ownership-in-spotlight

In summary;

  • New Zealand Airlines owns 26%
  • Etihad Airways (UAE) owns 24%
  • Singapore Airlines owns 15.6%
  • Virgin Group owns 10% shareholding

Now this tallies to 75.6% with no mention 24.6% ownership details.

Regardless, it appears Virgin Australian is a minor owner, with three other countries filling out the balance.

I’m tired of hearing about Chinese interests waiting to pounce on Aussie business etc in trouble. In this case, perhaps the headlines are a little misleading to gain attention, or,  perhaps it will be another buyout by China. Without accounting for the 24.6 %, Chinese interests have a pretty good chunk of the airline available if New Zealand sell.

It would be good to keep at least some of Virgin Australia as Australian and the QLD Gov’t intends to go halfway with, I’m guessing, the Federal Gov’t to achieve that. The Federal Gov’t doesn’t consider the rescue necessary. What about Qantas?

Was there not a moratorium put in place by the Morrison Gov’t, to review any such monetary investments post COVID-19?

Will the company collapse or will we still have our Aussie Virgins flying the skies?

Latest from 7NEWS.com.au

https://7news.com.au/travel/coronavirus/virgin-australia-goes-into-voluntary-administration-after-failing-to-secure-government-lifeline-c-987575

  • Not looking good for Virgin Australia. Liquidators will try to find a buyer and no prizes for guessing the likely contenders.
  • If a buyer is found, then it’s unlikely to be a very Australian Virgin Australia. The plus side would be that the airline continues and jobs can be saved.

Words for today;        Buy Australian

More to come;     same blog time, same blog channel


Responses

  1. Depressing, isn’t it?

    Like

  2. Ditto

    Liked by 1 person


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