Virgin Australia gets green light for Skywest deal
Virgin Australia’s planned purchase of Skywest Airlines has been approved by Australian regulators.
The Australian Competition & Consumer Commission (ACCC) cleared the AU$47 million (US$49m) takeover on Friday, allowing Virgin Australia to proceed with its planned 100% acquisition of the Perth-based regional carrier.
Under the agreement, Skywest would become part of the Virgin Australia brand but would continue to operate under its current Air Operator’s Certificate (AOC), and with its own management team.
Virgin Australia CEO John Borghetti welcomed the ACCC’ decision.
“The ACCC’s clearance represents an important step for Virgin Australia in completing the proposed acquisition of Skywest,” Borghetti said. “This acquisition will enable us to accelerate our expansion in the high growth fly-in-fly-out (FIFO) and regional markets, increasing competition in these important segments and bringing new benefits to customers.
“It will also be very positive for business and tourism, particularly in Western Australia and regional Australia, as we will invest to support the growth of Skywest,” Borghetti added.
Meanwhile, Tiger Airways shareholders have approved plans to sell a 60% stake to Virgin Australia. The AU$35m deal was announced last October, on the same day Virgin Australia revealed plans to acquire Skywest.