Virgin Blue Offer Rejection A Scam!
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Join Date: Jan 1999
Location: Melbourne,Vic, Australia
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Virgin Blue Offer Rejection A Scam!
So last night we watched Richard Branson very politely reject the offer of $250 million from Air NZ.
This has got to be a way massive set-up by the Singaporeans (pulling Sir RB's strings) to further erode the value of Ansett due to increased competition.
This will further enhance the case of the Singaporeans getting an increased slice of Air NZ.
The game is now well and truelly afoot!
Mark my word - the day the NZ govt announces an increase in foreign ownership of Air NZ VB will not sell out but jump into bed with Ansett much the same way Impulse did with QF.
Rejecting $250 m!
You're kidding me aren't you - it was never a serious offer from the start.
This has got to be a way massive set-up by the Singaporeans (pulling Sir RB's strings) to further erode the value of Ansett due to increased competition.
This will further enhance the case of the Singaporeans getting an increased slice of Air NZ.
The game is now well and truelly afoot!
Mark my word - the day the NZ govt announces an increase in foreign ownership of Air NZ VB will not sell out but jump into bed with Ansett much the same way Impulse did with QF.
Rejecting $250 m!
You're kidding me aren't you - it was never a serious offer from the start.
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Have a look at the picture on the front of the Australian newspaper this morning.
The cheque that RB is holding for $ 250m and (subsequently ripped up) is a Qantas Staff Credit Union Ltd cheque and not an AN/TN cheque.
I guess he's allowed a little "poetic licence" in the interests of a good story.
The cheque that RB is holding for $ 250m and (subsequently ripped up) is a Qantas Staff Credit Union Ltd cheque and not an AN/TN cheque.
I guess he's allowed a little "poetic licence" in the interests of a good story.
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"If (Virgin Blue) wasn't in the market, Ansett would be making nice profits," said Peter Harbison, managing director of the Centre for Asia Pacific Aviation in Sydney. "You could argue that it is costing Ansett at least A$250 million a year." Analysts expect Air New Zealand to post a loss of about NZ$190 million (US$83.6 million) next week largely because of Ansett's troubles.
Simon Gresham, an airline analyst for Merrill Lynch in Sydney, said Mr. Branson is shrewd to hold back because Ansett's position vis-a-vis Virgin Blue is deteriorating. Virgin Blue is adding routes and new aircraft as Ansett wrestles with maintenance crises due to an aging fleet. Mr. Branson said he would be open to marketing agreements for Ansett to sell seats on Virgin Blue flights on small-town routes that Ansett doesn't consider viable. Virgin Blue is also pursuing New Zealand's approval to begin flights within New Zealand and between that country and Australia. Mr. Branson also said that Singapore Airlines ), which owns a quarter of Air New Zealand and 49% of his Virgin Atlantic Airways, disagrees with Virgin Blue's expansion plans and would prefer that it align with Ansett.
But giving up Virgin Blue's affordable air service would hurt Mr. Branson's efforts to sell other Virgin brand services in Australia, Mr. Gresham said. "He's got to keep the faith with the Australian consumer," Mr. Gresham added. Virgin Mobile, for example, launched mobile-phone service in Australia a year ago. Mr. Branson said this week that "the fact we can give people a free airline ticket if they switch their mobile phone is a powerful weapon."
Simon Gresham, an airline analyst for Merrill Lynch in Sydney, said Mr. Branson is shrewd to hold back because Ansett's position vis-a-vis Virgin Blue is deteriorating. Virgin Blue is adding routes and new aircraft as Ansett wrestles with maintenance crises due to an aging fleet. Mr. Branson said he would be open to marketing agreements for Ansett to sell seats on Virgin Blue flights on small-town routes that Ansett doesn't consider viable. Virgin Blue is also pursuing New Zealand's approval to begin flights within New Zealand and between that country and Australia. Mr. Branson also said that Singapore Airlines ), which owns a quarter of Air New Zealand and 49% of his Virgin Atlantic Airways, disagrees with Virgin Blue's expansion plans and would prefer that it align with Ansett.
But giving up Virgin Blue's affordable air service would hurt Mr. Branson's efforts to sell other Virgin brand services in Australia, Mr. Gresham said. "He's got to keep the faith with the Australian consumer," Mr. Gresham added. Virgin Mobile, for example, launched mobile-phone service in Australia a year ago. Mr. Branson said this week that "the fact we can give people a free airline ticket if they switch their mobile phone is a powerful weapon."
