‘Important part of our business’: Virgin signals keeping Velocity amid float buzz
Virgin Australia boss Paul Scurrah has given his clearest indication yet that the airline intends to retain a majority stake in Velocity, the airline's frequent flyer program, even as it weighs a float of the lucrative loyalty business. Virgin owns a 65% stake in Velocity, while its partner Affinity Equity Partners owns the remaining 35% and there is a strong expectation that in the market that at the least Affinity is looking to sell out its share. Looking for another investor has promoted Virgin to consider whether to reduce its holding as well, while retaining a controlling stake, to strengthen its financial position. While a straight sale to another industry player or private equity firm has been touted as a likely outcome, sources said Virgin is also exploring the possibility of an IPO for Velocity. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-05-21/unaligned/2018important-part-of-our-business2019-virgin-signals-keeping-velocity-amid-float-buzz
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‘Important part of our business’: Virgin signals keeping Velocity amid float buzz
Virgin Australia boss Paul Scurrah has given his clearest indication yet that the airline intends to retain a majority stake in Velocity, the airline's frequent flyer program, even as it weighs a float of the lucrative loyalty business. Virgin owns a 65% stake in Velocity, while its partner Affinity Equity Partners owns the remaining 35% and there is a strong expectation that in the market that at the least Affinity is looking to sell out its share. Looking for another investor has promoted Virgin to consider whether to reduce its holding as well, while retaining a controlling stake, to strengthen its financial position. While a straight sale to another industry player or private equity firm has been touted as a likely outcome, sources said Virgin is also exploring the possibility of an IPO for Velocity. <br/>
