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An insolvent Virgin Australia buyer is expected in June. Wizz-Air Indigo Partners investor is among those interested, not for the first time.
If an insolvent airline is for sale, the responsible insolvency administrator is pleased to announce a strong interest in the airline. Consulting firm Deloitte, which has managed the insolvent Virgin Australia Airlines since last week, said there were more than 20 potential customers for the airline.
However, it is easy to be numbered among potential buyers. Experience has shown that there will be less if non-binding offers are requested in mid-May and even less if binding offers are to be submitted in June. Deloitte plans to select a buyer for Virgin Australia in late June.
Indigo is not the first time in the race
Stakeholders include Australian billionaire miner Andrew Forrest, who is advised by Bank Credit Suisse according to the Australian Financial Review. Investment companies and banks in Australia, the United States, Canada and Asia are also among the potential buyers.
US low-cost airline investor Indigo Partners is also trading as a stakeholder. It already owns shares in Frontier Airlines (USA), Volaris (Mexico), Wizz Air (Hungary) and Jetsmart (Chile). As reported by the Sydney Morning Herald newspaper, Indigo is said to have tried to grow big in Virgin Australia in late 2018.
Wow Air acquisition failed
At the time, the report said that China HNA’s 20 percent stake in Virgin Australia was for sale. Indigo also tried to buy shares of other Chinese shareholders, Nanshan and Etihad. However, when this failed and Indigo was unable to become the largest shareholder, the finance company decided not to.
In the past, Indigo Partners has also been exchanged as a possible stakeholder for the German vacation airline Condor. A planned entry into the Icelandic Wow Air failed at the last moment. In the case of Virgin Australia, the Australian media also considers Indigo to be possible with a local partner.
Does Virgin become a low-cost airline again?
If Indigo Partners really comes into play, it will be exciting to see what that means for Virgin Australia’s business model. The airline could possibly switch from a network airline to a low-cost airline. In 2000 it started as a low cost airline under the name of Virgin Blue.
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