SYDNEY (Dow Jones)--Virgin Blue Holdings Ltd. (VBA.AU) Chief Executive Brett Godfrey said Tuesday that recent volatility in the airline's shares was the result of Toll Holdings Ltd. (TOL.AU) exiting its stake in the business and he was not aware of any other airline taking a stake in the company.
"What I understand is it's predominantly domestic institutions taking positions, I'm not aware of other airlines buying shares," he told reporters at the launch of Virgin's new lounge facility at Sydney airport.
Godfrey also said the airline's fortunes had improved since April.
"April was a little bit tough but since then it's stabilized, which is good and it's proving to be a bit more resilient than a lot of people thought," he said.
Earlier Tuesday, Virgin Blue announced plans to establish a jet base in Sydney that would employ around 1,000 people within five years.
Godfrey said the establishment costs of the base would be a minimum of A$10.5 million upfront, and that Virgin expects to house around one third of its fleet, or around 25 planes, at the new base once it is established.