Sir Richard has left the building?

[Arthur Van Straten 0]

Source:

 

http://atwonline.com...-airasia-x-0629

 

UK-based Virgin Group, parent company of Virgin Atlantic Airways (VS), has sold its 10% stake in Malaysia’s AirAsia X (D7), the long-haul, low-cost carrier (LCC).

The move comes as Virgin Group realigns its investments to concentrate more closely on its own brand.

“We can confirm that Virgin Group … has sold its 10% stake in AirAsia X,” external relations director Nick Fox told ATW. “The terms of the deal remain confidential. We sold to existing shareholders.”

In a written statement, the company added:

 

D7 did not immediately comment on VS’s sale of its shareholding. According to Malaysian financial newspaper The Edge, the shareholding has been sold to AirAsia and Malaysian company Aero Ventures for around $21 million. Aero Ventures is a holding company established by Fernandes and others to invest in aviation-related projects.

 

 

Does Sir Richard knows something we do not know yet?

Cheers

Art

[T Azahan 1]

Thanx Arthur for the news. It looks significant to me.

[flee 5]

The move comes as Virgin Group realigns its investments to concentrate more closely on its own brand.

 

Does Sir Richard knows something we do not know yet?

I suspect that since AirAsia X does not serve the EU anymore, the Virgin Group sees little in common with them. But it does seem a little strange that they divested before the IPO. One would have thought that they might want to sell their holdings during the IPO. Still the existing shareholders may have thought that it is an opportune moment to make the offer before the IPO. As the S&P details are confidential, we can only speculate!

[Naim 6]

Branson sold below cost, from what I hear, and AirAsia would quit AirAsia X upon IPO, not sure about Aero.

[S V Choong 4]

Is that an indication that the long haul LCC model doesn't work after all?

[flee 5]

Branson sold below cost, from what I hear, and AirAsia would quit AirAsia X upon IPO, not sure about Aero.

Makes sense for AK to quit as it should be an operational unit, not investment vehicle. They may just transfer the shares to Tune or Aero.

Edited July 3, 2012 by flee

[Arthur Van Straten 0]

@ flee.

 

I said it before but gladly repeat, "I truly admire your unconditional approval of all doings by the red ones"

 

Back on topic, AK did not quit, Virgin did. ! Their press release was worded in a very polite way. As it should be between friends.

But if duly translated, could it have said, "Lets get the heck outta here before we lost our shirt and burned our pants" ??.

 

Cheers

Art

[KK Lee 5]

For flight over 6 hours, apart from cramping more pax, LCC have hardly any cost or operational advantages over FSC.

[Radzi 2]

How many long-range low-cost airline are there, and how many are considered successful?

[Kris Kim 0]

Well theres not many, JQ, D7 and TZ are the main ones in Asia with Zest & Cebu also looking at going long-haul. I think out of the 3 dominant ones, JQ is possibly the most successful, saying that D7 has also been successful especially exAustralia and East Asia. At this stage its to early to tell regarding TZ as it only started operations last month.

[flee 5]

No surprise over Branson's exit from AirAsia X

 

KUALA LUMPUR: Sir Richard Branson's Virgin Atlantic Airways Ltd exit from AirAsia X Sdn Bhd is not a surprise to those in the industry.

 

They also said the move will not affect AirAsia X's initial public offering (IPO)expected by year-end.

 

A source familiar with the matter told Business Times that there was clear indication that Branson wanted out from AirAsia X when his company did not participate in the airline's capital-raising back in 2010.

 

He pointed out that there were also talk that if there was an IPO, Branson will sell his 10 per cent stake.

 

"AirAsia X management never gave a definite timeline for the IPO. The exit is a known fact in the airline fraternity ... it is not a surprise.

 

"At that point (when Branson invested in AirAsia X), it was an attractive investment and the idea was exciting. Expectation was one thing and delivery and execution was another ... Richard Branson's group cannot wait any longer and just want to get out," said the source.

 

A financial daily reported yesterday that Branson was expected to sell his stake to local shareholders for more than RM66 million.

 

Branson bought the stake in 2007.

 

However, his investment came to no avail for AirAsia X since he was a silent investor and did nothing much to build the airline, said the source, adding that Branson's investment in the airline was just to put a well-known face in it.

 

Branson could have interlined Virgin and AirAsia X or introduced new products but he did not, said the source.

 

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/AAXRB/Article/