Virgin Australia invests A$8million in Skywest Airlines
By algevis - Tue Apr 10, 10:51 pm
Skywest Airlines Ltd. the Australian and South East Asia regional airline, announced that it has entered into an agreement for Virgin Australia Holdings Limited (ASX:VAH) to invest A$8 million in the Company.
- If the investment and associated warrants are converted to equity, the stake would represent 10% of the ordinary shares in Skywest on a fully diluted basis.
- Skywest has a strong working relationship with Virgin Australia and the two airlines are currently operating four ATR 72 aircraft as part of the Australian Regional Airline Network (“ARAN”) Agreement. This fleet will grow to 12 by the end of the 2013 financial year.
Skywest Executive Chairman Jeff Chatfield said: “This investment highlights the confidence that Virgin Australia has in the Skywest business and our ability to tap into future growth opportunities in the Australian regional market.
“Our current integrated offering with Virgin Australia is extremely valuable to major mining company customers who need to move large numbers of employees to and from their place of employment around Australia. By late 2012, we expect the run rate revenue of the ARAN business to be larger than the existing Skywest legacy RPT business.”