Strategically and emotionally, Virgin Atlantic is the Virgin Group’s flagship unit. © 2021 BBC. This is not an indication he will support Virgin Australia. Singapore is the only Virgin shareholder with public accounts. You may opt-out by. Virgin Australia is ten per cent owned by billionaire Sir Richard Branson, who is battling to save his UK business Virgin Atlantic. Trace back Virgin Australia’s history with our year-by-year company profile. Virgin Trains was launched in 1997 and Branson has ridden out a period when passenger complaints soared. Virgin Australia plans to reclaim full ownership of its Velocity Frequent Flyer scheme by purchasing the 35% stake of Affinity Equity Partners, which bought into the program in 2014 for A$335 million but is now looking to offload its share. Virgin flew to Etihad’s Abu Dhabi hub and transferred passengers to onward Etihad flights to Europe. Read about our approach to external linking. Tigerair Australia (ceased Aug-2020) On 21-Apr-2020, Virgin Australia Holdings entered voluntary administration and appointed Deloitte as administrators. Shareholder support or re-capitalization of Virgin Australia would buck global trends. Branson is supporting Virgin Atlantic, which he owns 51% of. Branson said he will not collect licensing fees from Virgin companies during the downturn. Record unemployment and the inevitable tapering of Covid-19 welfare payments mean there'll soon be limited dollars floating around for people to spend. There was further impact to Singapore Airlines as the value of its stake in Virgin decreased from $432m in 2018 to $315m in 2019. Virgin Australia’s two Chinese shareholders have ended up with almost 40% of the company after a $1.1 billion capital raising. Virgin has a new partnership with All Nippon Airways to facilitate Virgin’s planned entry into the Japanese market. Virgin has discontinued Abu Dhabi. Etihad Airways owns 21% while Singapore Airlines, China’s Nanshan Group and HNA each own approximately 20%. Virgin Australia shareholders are few in number but of great complexity. Virgin Australia is far less strategic. "Bain Capital has presented a strong and compelling bid for the business that will secure the future of Australia’s second airline, thousands of employees and their families and ensure Australia continues to enjoy the benefits of a competitive aviation sector," Deloitte said in the statement. They may also have a dwindling appetite. Singapore Airlines, which is majority-owned by the Singapore Government, owns 20 per cent of Virgin Australia. Virgin was saved without state intervention and the prospect of a Qantas monopoly has been avoided. Scott Morisson and Josh Frydenberg have other options though. The airline reaped $336 million from the sale of a 35% stake in its Velocity business to fund manager Affinity Equity Partners, in a purchase which values the entire program at $960 million. ANA has taken stakes in Philippine Airlines, Vietnam Airlines and explored Myanmar. Virgin Group owned 10% of Virgin Australia. With other governments open to supporting their airlines, Virgin is following suit and asking Australia for assistance. Virgin Group remains an investor, but lately its largest return has been Virgin Australia paying licensing fees to use the “Virgin” brand. Virgin Australia administrators name Bain Capital as new owner American private equity firm Bain Capital will be the new owner of Virgin Australia after its only rival pulled out of the race in a shock move. Virgin founder Sir Richard Branson is a 10 per cent owner of Virgin Australia. The airline was struggling with long-term debt of A$5bn (£2.55bn; $3.17bn) even before the pandemic struck. It is currently majority owned by the United Arab Emirates’ Etihad airline, Singapore Airlines and Chinese carrier Hainan Air, with a small stake held by Richard Branson’s Virgin Group. While stressing he could not talk on behalf of Nanshan, he said the Chinese group was a “passive investor” in Virgin that would give due consideration to … Airlines have typically not turned to their private shareholders for financial support. But Australia is in its first recession in almost three decades. Etihad Airways owns 21 per cent of Virgin. ANA is an active investor in airlines, but is focused on Southeast Asia. Its head office is located in South Bank, Brisbane. The Czech Republic expels 18 Russian diplomats after linking the operatives to a 2014 explosion. Four of the shareholders do not have much leverage over each other since their stakes are about equal at one-fifth. Virgin Australia’s shareholders have been strategic partners, but the strategies seldom lasted. The other major shareholders invested only this decade. The BBC is not responsible for the content of external sites. The old thinking was that not having Virgin as a partner may be costlier if Singapore Airlines increases its stake and Virgin funnels Australia-Europe traffic via Singapore Airlines instead of Etihad. Virgin Australia History. Virgin Australia, which had already furloughed 80 per cent of its 10,000-strong workforce, will continue to operate some flights for essential workers, freight and the repatriation of Australians. As Etihad restructures, it needs to determine what its future size is and how important Australia will be. Not untypically, Virgin Trains is 49% owned by another transport group, Stagecoach. The three companies had partnered together a year earlier to begin looking for an existing casino resort property in Las Vegas. In his comments on Tuesday, Mr Branson seemed eager to remain a part of Virgin Australia in its post voluntary administration life. Nasa to fly helicopter on Mars for first time. Virgin never landed at Changi Airport, home to Singapore Airlines, but Virgin sold flights operated by Singapore Airlines. Virgin Money Australia is an Australian financial services company owned by Bank of Queensland, and has 150,000 customers. Virgin Australia’s administrators say they have committed to selling the stricken airline to US private equity group Bain Capital. While there was plenty of interest in buying Virgin Australia, there'll still be sighs of relief in the corridors of power that the airline has a new owner. Virgin Australia collapses into administration, Branson offers Caribbean island to secure bailout, Branson to sell Galactic stake to prop up Virgin, Salisbury poison suspects 'linked to Czech blast'. "The Virgin Australia Group conducts due diligence on potential directors. Helen McCrory was 'meteor in our life' says Lewis, Nasa to fly helicopter on Mars for first time. For the government this is a win. Distance increased under former Virgin Australia CEO John Borghetti, who had a buttoned-up management approach compared to eclectic Branson. Singapore Airlines valuation of investment in Virgin Australia. Financially, Branson is offering to invest £215m into Virgin Atlantic, but the airline needs more assistance. Virgin Australia is currently owned by a number of major shareholders including Sir Richard Branson. Video, Nasa to fly helicopter on Mars for first time, The students living cheaply in a luxury hotel. This underscores the tension between the shareholders since they are in overlapping markets and could all benefit from Virgin selling their flights. I am particularly interested in aeropolitics, cross-border investments, partnerships, transformations, new revenue growth and start-ups. Richard Branson in 1996 on Necker Island, which he owns. Etihad’s partnership with Virgin gives it larger awareness in Australia, especially in corporate accounts. Virgin Australia owed more than $6.8bn to more than 12,000 creditors, including employees, banks, aircraft financiers and landlords, when its … Whereas most airlines have a large number of varied shareholders, five companies own over 90% of Virgin Australia. US private equity firm Bain Capital is the new owner of Virgin Australia, with the largest group of creditors voting in favour of the $3.5 billion sale on Friday. Etihad also codeshares on Virgin’s domestic flights, helping Etihad reach destinations it does not serve. I am particularly interested in aeropolitics, cross-border investments, partnerships. Singapore Airlines’ accounts were dragged down last year by incurring a S$116 million loss associated with Virgin’s performance. Who owns Virgin Australia? Those U.S. services are operated as part of a joint-venture with Delta Air Lines In 2000, the Virgin brand entered the Australian aviation market for the first time, bringing real competition in the leisure sector of the market. Etihad, Singapore Airlines and Chinese carrier Nanshan each also own about a fifth of Virgin. It previously operated Pacific Blue Airlines, Tigerair Australia and joint-venture airline Polynesian Blue which were absorbed into Virgin Australia in December 2011. I have been covering airlines and aerospace in Asia-Pacific for 10 years. Virgin entered a trading halt on April 14 pending a restructuring announcement. Bain and another US firm, Cyrus Capital Partners, had been in the running to buy the airline before Cyrus pulled out on Friday. It has also committed to retain thousands of jobs. All Rights Reserved, This is a BETA experience. Virgin Australia is rapidly running out of cash, ... Qantas said it had raised about $1 billion in additional debt from the market in a loan secured against aircraft it owns. Read about our approach to external linking. If Etihad ended its partnership with Virgin, Etihad would likely have a smaller footprint in Australia. But Qantas is partnering with Qatar’s competitor Emirates. Virgin Australia started life in 2000 as Virgin Blue, closely affiliated with Branson’s Virgin Group. Virgin Australia is currently owned by a number of major shareholders including Sir Richard Branson. Qantas Won't Benefit If Virgin Australia Goes Out Of Business, The Leukemia & Lymphoma Society BrandVoice, The New Drone Threat Facing Iraqi Kurdistan’s Erbil, With Its New SkyCourier, Textron Will Try To Top One Of The Most Successful Cargo Aircraft Ever, It Took Four Aerial Tankers To Drag Four U.S. Air Force F-16s To The South China Sea—And That’s A Problem, Delta Touts A Big Increase In Leisure Travel Demand Even As It Posts Another Huge Loss, China Blinks As American, Philippine Fleets Challenge Possible Reef Seizure, Biden’s Assault Weapon Ban Faces Long Odds As States Battle Over Gun Control, Why Is Australia Building Missiles? I am originally from New York City, graduated from the University of Melbourne, and now live in Hong Kong. Virgin Australia Holdings Limited is the holding company that owns and operates Virgin Australia, Virgin Australia International Airlines and Virgin Australia Regional Airlines. I have been covering airlines and aerospace in Asia-Pacific for 10 years. The looming sale of Virgin Australia will be "a very competitive process" involving "high-quality bidders with fantastic credentials and the ability to restructure this business. In addition, a "significant injection of capital" would be made to help Virgin Australia recapitalise for the future, according to the statement. In the 1970s he founded the Virgin Group, which today controls more than 400 companies in various fields.. Branson expressed his desire to become an entrepreneur at a young age. Australia's second biggest carrier had unsuccessfully asked for government loans before its collapse in April. VideoThe students living cheaply in a luxury hotel, The 'intimacy coordinator' who choreographs sex scenes, Japan's ancient secret to better cognitive memory, 'Bushfires make you realise climate change is real' Video'Bushfires make you realise climate change is real', Salisbury poison suspects 'linked to Czech blast'2, Table Mountain fire burning 'out of control'3, William and Harry seen chatting after funeral4, Stop using Peloton near children - US regulator5, Helen McCrory was 'meteor in our life' says Lewis6, Giant clam shells worth $25m seized in Philippines8, FedEx gunman had previous gun confiscated9, Adobe co-founder who helped develop the PDF dies10. After being placed in administration in April 2020, it was purchased by Bain Capital in August 2020. Virgin Atlantic is having Airbus, Heathrow Airport and Rolls-Royce back its bid for UK government assistance. Whether that comes to fruition is up in the air. Delta leads in global investments, having placed stakes in Air France-KLM, China Eastern, Korean Air, LATAM and Virgin Atlantic. Air race for survival These are its shareholders. , which is Virgin’s only major strategic partner not to have invested in Virgin. Virgin Australia's shareholders – which include five significant foreign airline groups – have been warned they will not see a cent of their money. Administrators for the airline, Deloitte, said on Friday that Bain would become the new owners, with the deal expected to be completed by the end of August. It has also been brought to its knees by the coronavirus pandemic. HNA’s investment saw Virgin fly to Hong Kong, hub of namesake Hong Kong Airlines, but Hong Kong was also discontinued. Opinions expressed by Forbes Contributors are their own. His first business venture, at the age of 16, was a magazine called Student. Its strategic partnership with Virgin did not pan out. Whereas most airlines have a large number of varied shareholders, five companies own over 90% of Virgin Australia. These are its shareholders. VideoNasa to fly helicopter on Mars for first time, JD Vance: Trump whisperer turned Senate hopeful, How cancer put me off joining Amazon union, Hunger hits Brazil's slums amid Covid surge, The students living cheaply in a luxury hotel. Virgin has been a worsening financial investment. © 2021 Forbes Media LLC. No doubt Richard Branson et al would decline to sell without a 30 per cent premium. Qatar is in the Oneworld Alliance, one of whose anchor members is Qantas. The group stated it is seeking to emerge "in a stronger financial position on the other side of the COVID-19 crisis". Sir Richard Charles Nicholas Branson (born 18 July 1950) is an English business magnate, investor, and author. On Thursday rival airline Qantas said it will axe 6,000 jobs as part of its plans to survive the coronavirus pandemic. Will Horton. Sir Richard has said he will sell a stake in his Virgin Galactic space tourism business to support his other businesses, including Virgin Atlantic. While the Australian airline continues to use the “Virgin” name, there are few ties between Virgin Australia and Virgin Group. Despite taking a financial hammering this year, Mr. Branson appears keen to maintain an interest in Virgin Australia. Photograph: Sipa Press/Rex Features. A statement said Bain supports the airline's current management team and its turnaround plan for the business. HNA and Etihad are restructuring, making it difficult to invest further in Virgin. As evidenced by the Abu Dhabi and Hong Kong withdrawals, Virgin’s international network never found solid footing aside from flights to Los Angeles. Following the completion of the merger between NTL and Telewest, and the acquisition of Virgin Mobile, the company agreed a 30-year licensing agreement with Sir Richard Branson's Virgin Group to use the Virgin brand, with a ten-year opt-out clause. Virgin Australia has been bought by US private equity group Bain Capital after falling into administration due to coronavirus travel restrictions. Bain will continue with Virgin’s plan to consolidate to a single brand, ending low-cost Tigerair operations. Virgin Australia’s shareholders are few in number but large in complexity. Virgin Australia leased and owned fleet as of December 31, 2019. With the second largest airline in Australia asking for help – loans, bailouts – from the federal government, there is interest in who owns this airline and if they can prevent Virgin from filing administrative submissions and … Sir Richard Branson’s Virgin Group owns 10%. Finance Finance News Three frontrunners emerge in the race to buy Virgin Australia 10:00pm, May 13, 2020 Updated: 9:50am, Jun 5 A last-gasp bid has been made for Virgin Australia. HNA is moving away from foreign investments to focus on its core Chinese market. Because America Might Hoard All Its Missiles For Itself, ‘U-Boat Or Whale?’ Secret WWII Report Explains The Difference. Air New Zealand was a former investor in Virgin Australia, but sold its stake at a loss. So it'll be interesting to see how the two airlines compete and, given they're both flush with new investment, whether they go down the path of a price war. A frequent flyer tie-up between them allows passengers to earn Virgin Velocity points when flying Etihad – a huge incentive for Australians to book Etihad instead of Qantas and its partners. DAL It has posted seven consecutive annual losses. He also put up his luxury Necker Island as collateral to help secure a government loan. Virgin Australia is ten per cent owned by billionaire Sir Richard Branson, who is battling to save his UK business Virgin Atlantic. (Singapore Airlines received shareholder support, but that was driven by anchor investor Temasek Holdings, Singapore’s state-owned investment vehicle.). In the short term - if and when state borders open up - there'll be pent up demand at both airlines (and their cut-price subsidiaries) from people desperate to fly around Australia to see family, do deals or have a holiday at home instead of abroad. It then ended its Australia-New Zealand joint-venture with Virgin. He has offered to mortgage an island he owns to help save the company +11 … Other than Sir Richard, Virgin Australia is currently owned by a number of shareholders including Singapore Airlines, the UAE government and China's HNA airline. Will Horton. With Australia’s second-largest airline requesting assistance – loans, bailout – from the federal government, there is interest in who owns the airline and if they can prevent Virgin from filing for administration and going out of business. Virgin Australia has sold just over one-third of its Velocity Frequent Flyer program in an attempt to turbocharge the scheme and double its membership from 4.5 million to 7.5 million in the next three years.. The wild card scenario to Etihad’s detriment is Qatar Airways investing in Virgin. In January 2018, majority owner Brookfield Asset Management was in discussions to sell the Hard Rock to a group of buyers, including Virgin Hotels, Bosworth Hospitality, and investment firm Juniper Capital Partners. Qantas has been lobbying to prevent Qatar from receiving more traffic rights to Australia, which would allow Qatar to grow. Virgin Australia CEO Paul Scurrah is said to be very keen that Virgin’s new owners would be Australian, following recent criticism over the airline being 90% held by foreign entities. They could offer to acquire the company Virgin Australia Holdings, acquire the shares that it, recapitalise the company and sell it later. And the success of video conferencing will be making cash-strapped firms reconsider those Sydney-Melbourne business trips that have been the proverbial cash cow for both Qantas and Virgin. Virgin Australia has continued to fly a limited service between major cities as administrators Deloitte look for way for the airline to get back on its feet. Who owns Virgin Australia? 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