Wirraway
1st Oct 2002, 04:00
AAP
Virgin expects 30 pc
By Megan Neil
October 01, 2002
LOW cost airline Virgin Blue expected to have 30 per cent of Australia's aviation market by the end of 2003, its half owner Patrick Corp said.
Patrick managing director Chris Corrigan also said the stevedoring and logistics group would not sell down its 50 per cent stake in the airline if Sir Richard Branson's Virgin Group went ahead with a float of Virgin Blue next year.
Mr Corrigan told investors in New York that Virgin Blue now had 20 per cent of the market, up from 10 per cent a year ago.
Qantas Airways Ltd currently held around 78 per cent, he said.
"We have aircraft on order which will be delivered before March of next year, which should take us to a 30 per cent market share we believe by December of 2003," Mr Corrigan told the Merrill Lynch Australasia investment conference.
But he said the target was dependent on better terminal access, particularly at the former Ansett terminal at Sydney airport.
"Hopefully reason will prevail there and we'll get access to the old Ansett facility there and that will allow us to expand," he said.
"It's not critical for us in the next 12 months but obviously the sooner it happens the better."
Mr Corrigan said Patrick did not have "any particular interest" in selling down its Virgin Blue stake, acquired for $260 million in March, but he noted that the Virgin Group was pursuing a secondary sale of its interest.
"If that occurs or not I don't know but it wouldn't surprise me if that occurred some time in the first half of next year."
He later told journalists that Patrick had an obligation to sell down five per cent of its stake if that occurred, but did not know if the company would be required to do so and it would not divest a greater share.
The airline was currently servicing 19 of the top 20 routes in Australia, which represented 85 per cent of all passenger movements in Australia.
The last - the Sydney to Canberra route - would follow when Virgin Blue gained access to the Ansett terminal in Sydney, Mr Corrigan said.
There has been talk of a third airline entering the Australian market, with Singapore Airlines the subject of much speculation.
But Mr Corrigan did not think a third carrier was likely.
"Do I think it's likely, no I don't think it's very likely but the airline business does seem to be notoriously unpredictable."
AAP
Virgin expects 30 pc
By Megan Neil
October 01, 2002
LOW cost airline Virgin Blue expected to have 30 per cent of Australia's aviation market by the end of 2003, its half owner Patrick Corp said.
Patrick managing director Chris Corrigan also said the stevedoring and logistics group would not sell down its 50 per cent stake in the airline if Sir Richard Branson's Virgin Group went ahead with a float of Virgin Blue next year.
Mr Corrigan told investors in New York that Virgin Blue now had 20 per cent of the market, up from 10 per cent a year ago.
Qantas Airways Ltd currently held around 78 per cent, he said.
"We have aircraft on order which will be delivered before March of next year, which should take us to a 30 per cent market share we believe by December of 2003," Mr Corrigan told the Merrill Lynch Australasia investment conference.
But he said the target was dependent on better terminal access, particularly at the former Ansett terminal at Sydney airport.
"Hopefully reason will prevail there and we'll get access to the old Ansett facility there and that will allow us to expand," he said.
"It's not critical for us in the next 12 months but obviously the sooner it happens the better."
Mr Corrigan said Patrick did not have "any particular interest" in selling down its Virgin Blue stake, acquired for $260 million in March, but he noted that the Virgin Group was pursuing a secondary sale of its interest.
"If that occurs or not I don't know but it wouldn't surprise me if that occurred some time in the first half of next year."
He later told journalists that Patrick had an obligation to sell down five per cent of its stake if that occurred, but did not know if the company would be required to do so and it would not divest a greater share.
The airline was currently servicing 19 of the top 20 routes in Australia, which represented 85 per cent of all passenger movements in Australia.
The last - the Sydney to Canberra route - would follow when Virgin Blue gained access to the Ansett terminal in Sydney, Mr Corrigan said.
There has been talk of a third airline entering the Australian market, with Singapore Airlines the subject of much speculation.
But Mr Corrigan did not think a third carrier was likely.
"Do I think it's likely, no I don't think it's very likely but the airline business does seem to be notoriously unpredictable."
AAP