Virgin blue selling up
17:08 AEST Mon 19 Nov 2001
Fels gives green light to Virgin sale
Australian Competition and Consumer Commission chairman Allan Fels says he does not believe there are any competition issues with Virgin Blue's proposal to sell as much as 51 per cent of the airline.
"As I understand it, Virgin is going to put itself on the market for a capital raising," said Professor Fels.
"That's not an issue because it doesn't involve competitors," he said.
Virgin Blue chief executive officer Brett Godfrey said yesterday that owner Sir Richard Branson was open to the idea of giving up control of the airline through a 51 per cent sale.
Mr Godfrey said the sale could take place sometime next year and indicated up to a dozen groups, including transport logistics group Lang Corporation, were interested in buying a stake in the airline.
Earlier today, Virgin Blue said it would make a formal bid for failed domestic carrier Ansett when it looks at the failed airline's books.
Virgin Blue's head of commercial David Huttner would not specify when Virgin would make the bid, which could be launched jointly with Lang Corp.
Is this just to raise that extra needed cash??