Richard Branson's goal of gaining a bigger stake in the Australian airline he helped found has been blocked by majority owner Toll Holdings.
Toll, which acquired 62% of Virgin Blue as part of its hostile takeover of Patrick Corp in May, has decided to keep its stake in the airline. In a statement to the Australian stock exchange, Toll says it has completed a review of the acquisition, as it had promised before year's end, and has decided to retain all its Virgin Blue shares.
Paul Little, Toll's managing director, praises Virgin Blue's management and points to positive initiatives the airline started after its takeover, including fuel hedging, a frequent flyer programme, live in-flight TV, redeveloped customer lounges, and more self-service customer offerings. Little did not mention it, but Virgin Blue is also signing more interline deals with foreign carriers, Hawaiian Airlines being the latest, and is expected to soon reveal plans to launch a transpacific route to the USA.
Source: Airline Business
