Virgin Australia taps shareholders for $425m

Virgin Australia taps shareholders for $425m

Virgin Australia could borrow up to $425 million from its four major shareholders as the airline seeks to review its capital structure and boost profitability.

The airline says it has secured a 12-month loan facility with Air New Zealand, Etihad Airways, Singapore Airlines and Virgin Group.

“This review will ensure the Virgin Australia Group has the best capital structure in place to achieve its strategic goals and generate long-term growth and value for shareholders,” Virgin Australia chairman Elizabeth Bryan said in a statement.

Virgin Australia in February announced a profit of $45.7 million for the six months to December 31, a period during which it secured a $US125 million ($A164 million) bank loan.

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