Originally Posted by
Capt. On Heat
I think you misread my post - I never said saviour, if SQ want to takeover make no mistake it will be for their interests and not Virgin's. I also never said I thought SQ would be good or great at it or whatever, just that they want to.
Remember when AirNZ wanted Mossimo gone but SQ and Etihad said No leading to the AirNZ exit? If they wanted out then was the time.
Of course who knows what may happen, but it was in print and the ducks are lining up with what was seems to have been predicted considering the announced repurchase of Velocity (bring back the best money making thing to be attractive for a buyer) and now Propstar bowing out of NZ... (remember all the Q400 markings that were painted at the airport parking bays but then never used??). Yes propstar was losing money with a product that didn't suit the regular regional domestic travellers and don't bet against the home team etc, but they stopped before being able to get to a critical mass to have a legitimate chance at things......why? Really think it was just a 'dumb early 20's graduate management decision'?
To me it still looks like Singapore/Scoot is coming and Qantas/ANZ are preparing.
Velocity buyback at this stage is strongly rumoured to be debt funded. (Source:AFR September 22 - Title: Cheap money, keen banks to fund Virgin's Velocity move
), as none of the shareholders are expected to fund this buyback. If SQ "were actually interested", they would've funded the buyback themselves.
Despite analysts suggesting the shareholders fund the buyback, the major shareholders such as SQ, EY, HNA, etc are expected to remain "hands-off" in VA. The later two has financial problems of their own to do anything.
(Source: AFR September 16 - Title: Geoff Wilson says $700m Velocity deal highlights Virgin's value).
SQ and EY has been "Hands-off" in VA for a long while now, the later has financial issues of their own and SQ have been on record as not being happy with their VA investment for sometime now. The fact that SQ are more hands on in Vistara (also largely a loss making venture) by buying planes for them suggests that VA is NOT a priority for them.
As many (including myself) suggest on the many aviation forums across the internet, SQ aren't the "so called saviour" to an airline's financial problems when there are better equity managers out there like DL and NH.