Wirraway
22nd Sep 2004, 06:24
http://www.stuff.co.nz/
Australia Virgin Blue weighs Air Macau move
22 September 2004
HONG KONG: Australia no-frills airline Virgin Blue Ltd is in talks with Air Macau on a possible merger, a newspaper reported yesterday, citing Macau-based sources.
The South China Morning Post said several options were being discussed, such as merging Air Macau into Virgin's operation in Macau. Last week Virgin Blue sent a seven-member advance team to meet Air Macau managers, the Post said.
"Certainly we are continuing to explore things (in Macau). . . But there's no agreement at this time, nor is there anything to indicate that we will have an agreement soon," the newspaper quoted Virgin Blue commercial chief David Huttner as saying.
Other Virgin sources stressed that a merger could be difficult given the "inherently different management cultures in low-cost airlines", the Post reported.
Alternative options include substantial royalty payments and shares in the new carrier for Air Macau, which must be induced to waive its 25-year monopoly. Air Macau has 16 years remaining on its monopoly, granted in 1995.
Sources at China National Aviation Corp (CNAC), the majority shareholder in Air Macau, said some Macau-based executives had opposed ceding control of the Macau market to other carriers, the report said.
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Australia Virgin Blue weighs Air Macau move
22 September 2004
HONG KONG: Australia no-frills airline Virgin Blue Ltd is in talks with Air Macau on a possible merger, a newspaper reported yesterday, citing Macau-based sources.
The South China Morning Post said several options were being discussed, such as merging Air Macau into Virgin's operation in Macau. Last week Virgin Blue sent a seven-member advance team to meet Air Macau managers, the Post said.
"Certainly we are continuing to explore things (in Macau). . . But there's no agreement at this time, nor is there anything to indicate that we will have an agreement soon," the newspaper quoted Virgin Blue commercial chief David Huttner as saying.
Other Virgin sources stressed that a merger could be difficult given the "inherently different management cultures in low-cost airlines", the Post reported.
Alternative options include substantial royalty payments and shares in the new carrier for Air Macau, which must be induced to waive its 25-year monopoly. Air Macau has 16 years remaining on its monopoly, granted in 1995.
Sources at China National Aviation Corp (CNAC), the majority shareholder in Air Macau, said some Macau-based executives had opposed ceding control of the Macau market to other carriers, the report said.
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