Singapore Airlines could buy Virgin Australia to block Chinese

Singapore Airlines has the financial firepower to make a bid for the remainder of Virgin Australia, but it may not do so unless a Chinese rival makes an offer for Air NZ's 25.9% stake, according to aviation experts. Maybank Investment Bank analyst Moshin Aziz said based on his estimates, SIA had a net cash balance of $S3b at the end of March, giving it one of the strongest airline balance sheets globally. An acquisition of the remainder of Virgin would cost around $1.5b, including an expected recapitalisation of the carrier. "[Singapore Airlines] clearly have the financial muscle, the money required to buy this airline," said Aziz. "But to put so much money in, you want clarity of the management of the airline and the [Australian] government would need to give its blessing." Airlines, as of January, had Foreign Investment Review Board approval to own up to 25.9% of Virgin. After increasing its stake slightly last week, it now holds 23.11%. Etihad Airways, a competitor to Singapore Airlines on the Kangaroo route, owns a 25.1%. Most market speculation about the possible buyer for the Air NZ stake has centred on Singapore Airlines, Delta Air Lines and Chinese carriers. Strategic Aviation Solutions chairman Neil Hansford said United Airlines, an alliance partner of Singapore Airlines and Air New Zealand, could also be a potential buyer.<br/>