Virgin Australia Holdings Ltd (VAH) sold a 10% stake to Singapore Airlines Ltd. (SIA) and sought control of two local rivals, creating the biggest challenge to Qantas Airways Ltd's (QAN) market leadership in more than a decade.
Singapore Air will spend A$105 million (US$108 million) on new Virgin shares, according to a statement on Tuesday. Brisbane- based Virgin will pay at least A$35 million for 60% of budget carrier Tiger Airways Holdings Ltd. (TGR)’s Australian unit and it will bid for all of regional operator Skywest Airlines Ltd. (SXR), according to filings.
Virgin jumped the most in eight months on the deals, as Chief Executive Officer John Borghetti builds on a strategy of alliances that already includes investments from Etihad Airways PJSC and Air New Zealand Ltd. (AIR) The move adds to pressure on Qantas, which last month announced a tie-up with Emirates in a bid to end losses on international routes.
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