Virgin Australia makes its China move
Virgin Australia’s CE, John Borghetti, faced a crisis a few months ago when a major shareholder tried to oust him over his refusal to rein in the airline’s expensive growth strategy. The executive survived the attempted boardroom coup, and last week delivered a strong riposte: a A$1b capital raising to repair the airline’s parlous balance sheet, and two new Chinese shareholders — HNA Group and Nanshan Group. Air NZ, which pushed Virgin’s board to sack Borghetti, is now selling most of its 22.5% stake in the airline. The deals will ensure Virgin remains a viable competitor to Qantas Airways, which retains 63% of the domestic market. They also reflect the international ambitions of Chinese airlines, which are seeking partners to exploit a tourism boom that saw 100m Chinese travel overseas last year. <br/>
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Virgin Australia makes its China move
Virgin Australia’s CE, John Borghetti, faced a crisis a few months ago when a major shareholder tried to oust him over his refusal to rein in the airline’s expensive growth strategy. The executive survived the attempted boardroom coup, and last week delivered a strong riposte: a A$1b capital raising to repair the airline’s parlous balance sheet, and two new Chinese shareholders — HNA Group and Nanshan Group. Air NZ, which pushed Virgin’s board to sack Borghetti, is now selling most of its 22.5% stake in the airline. The deals will ensure Virgin remains a viable competitor to Qantas Airways, which retains 63% of the domestic market. They also reflect the international ambitions of Chinese airlines, which are seeking partners to exploit a tourism boom that saw 100m Chinese travel overseas last year. <br/>
