Singapore Airlines rules out acquisition of Virgin Australia

SIA has ruled out buying a majority stake in Virgin Australia, saying its interests in the market are “best served through an independent Virgin Australia”. The statement Friday comes after speculation that SIA was interested in acquiring Virgin Australia, following news that Air New Zealand plans to sell its 25.9% stake in the Australian airline. “SIA wishes to put on record that it has not contemplated taking a majority stake in Virgin Australia. SIA’s interests in the Australian market - as well as in Virgin Australia itself - are best served through an independent Virgin Australia,” SIA spokesperson Nicholas Ionides said. The Singapore carrier currently has a 20.09% stake in Virgin Australia, and has committed to supporting the Australian airline’s recently announced entitlement offer. This could increase SIA’s shareholding to a maximum of 25.9%, should other Virgin Australia shareholders not take up their entitlements.<br/>