Virgin Australia makes $125m offer for Skywest
SYDNEY (AP) - Virgin Australia Holdings, the nation's second-largest airline, announced on Tuesday a 99 million Australian dollar (S$125 million) takeover offer for regional carrier Skywest Airlines and revealed it had bought a 60 per cent stake in budget domestic rival Tiger Airways Australia for A$35 million.
The Brisbane-based airline also announced that it had sold a 10 per cent stake to Singapore Airlines, its alliance partner which owns Tiger, for A$105 million.
The deals are part of Virgin's expansion plans aimed at challenging the dominance of Qantas Airways as No. 1 Australian carrier.
Virgin said its cash and scrip offer for Skywest, which operates in regional Australia and Southeast Asia, was worth A46.88 cents per Skywest share.