Virgin Blue being wooed ‘from outside Australia’
A report by Steve Creedy in The Australian says that while Virgin Blue may have been rejected by obvious airline suitors, somebody still appears to have the hots for Australia’s No2 carrier.
Toll Holdings chief executive Paul Little told CNBC at the weekend that there was strong interest in the airline being expressed “from outside Australia”.
While he did not name names, Mr Little said the company was still assessing its options in relation to “selling down part” of its 63 per cent holding in the airline.
He added that he hoped to make an announcement about the airline early next year, putting back slightly the timetable for an announcement on Virgin’s fate from the end of this year.
Mr Little was not elaborating on his comments yesterday but inquiries by various media outlets have already ruled out some of the possible suitors.
Among those to declare a lack of interest are Singapore Airlines, Emirates and Air New Zealand.
The logistics company, which has experts helping it with a potential sale, says the process has yet to be formalised.
Mr Little’s comments came as Virgin offshoot Pacific Blue launched its assault on New Zealand’s domestic market with typical fanfare. The airline is taking on incumbent Air New Zealand on its Auckland-Wellington, Auckland-Christchurch and Wellington-Christchurch trunk routes.
Virgin chief executive Brett Godfrey yesterday shrugged off suggestions that the airline would face a stiff offensive from an Air NZ keen to protect its home turf.
He said New Zealand was a prime example of a market that was constrained by lacklustre competition.
Pacific Blue would offer greater choice, more affordable fares and greater travel options.
He added the airline had flourished on the trans-Tasman route despite “doomsday warnings” of being caught in a bloodbath because of its low-cost strategy and commitment to service and low fares.
“This same strategy is being applied to domestic flights and we are enthusiastic about opening up domestic air travel opportunities in the same way we have done between Australia, New Zealand and the South Pacific,” he said.
A Report by The Mole from The Australian
John Alwyn-Jones
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