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Virgin Australia to invest in Skywest Airlines
Skywest A320 (www.australianaviation.com.au)
Virgin Australia has just announced an agreement with Skywest Airlines Ltd under which it will make an $8 million investment by way of a "convertible debt instrument" and warrants which together equate to a 10% stake in the Perth-based carrier.
The move expands the existing strong relationship between the airlines, which includes the wet-lease agreement under which Skywest operates Virgin Australia branded ATR aircraft on a number of East Coast routes, as well as joint marketing of charter and scheduled operations to the resources industry.
"This investment highlights the confidence that Virgin Australia has in the Skywest business and our ability to tap into future growth opportunities the Australia regional market," said Skywest executive chairman, Jeff Chatfield.
The proceeds of the investment will be used by Skywest "for general corporate purposes and to support its growth," a Skywest statement said.
More information in today's Travel Daily.