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Singapore Airlines buys 10% stake in Virgin Australia

Published on Oct 30, 2012 7:03 AM
 
The Singaporean carrier paid 42.88 cents a share for an issue of 245.6 million Virgin Australia stock, a 6.8 per cent discount to their last trade of 46 cents. The airline joins Etihad Airways which also has a 10 per cent stake in Virgin. -- ST FILE PHOTO: KEVIN LIM

Singapore Airlines will acquire a 10 per cent stake in Virgin Australia for US$105.3 million.

The Australian airline will also take a 60 per cent stake in Tiger Airways Australia which is a third owned by SIA, parties said on Tuesday morning.

Tiger Australia will be managed and run separately from its sister carrier, Tiger Singapore.

The SIA-Virgin tie-up is significant given that Middle Eastern carrier Etihad also has a 10 per cent stake in Virgin, industry observers said.

Qantas on the other hand recently sealed a partnership with Dubai-based Emirates, which will mean among other developments, the flying kangaroo operating to London via Dubai instead of Singapore.