Virgin Australia set to acquire Skywest
Virgin Australia Holdings is set to acquire 100% of Skywest with the regional carrier to be rebranded as Virgin Australia
The “in-principle” agreement, pending regulatory approval and that of Skywest shareholders, forms part of a series of major transactions which include Virgin’s sale of a 10% share to Singapore Airlines and acquisition of a 60% stake in Tiger Airways.
Chief executive John Borghetti confirmed that, while Skywest will continue to operate under its current Air Operator’s Certificate with its own management team, it will take on the Virgin Australia brand and become part of a more integrated network, service and frequent flyer program.
“If approved, this transaction will enable us to fast-track our advancement in the high growth fly-in-fly-out (FIFO) and regional markets, increasing competition in these important segments,” he said.
“Importantly, we will invest to support the growth of Skywest, which will benefit jobs, business and tourism, particularly in Western Australia and throughout regional Australia.”
Virgin Australia and Skywest launched a regional network partnership in October 2011, with Virgin taking a 10% stake in Skywest worth $8 million in April.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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