It was when Qantas Airlines of Australia declared a
potential alliance with the Emirates Airlines of Dubai that the turbulence was
caused in the lucrative Asia-Pacific aviation markets. The importance and
impact of such a deal could not have taken the other major players much time
from making strategic moves to bolster their position in the Australian aviation
market. And, the observers were not disappointed. The Singapore Airlines has
picked up a stake of 10 percent in Virgin Australia in a deal of AUD 105
million.
Virgin Australia is the main domestic competitor of Qantas
in the Australian market and in order to protect the regional interests in
aviation, Singapore Airlines has decided to firm up the Virgin positions in the
domestic aviation market of Australia. It is worth noting that Singapore
Airlines itself has its own LCC Tiger Airways in Australia which aims to
provide the cheapest air tickets to
the passengers. However, Singapore Airlines has chosen to expand the Tiger’s
fleet by firming up the hands of Virgin, the main competitor providing the cheap flights to the passengers.
Virgin has, in the same measure, announced acquisition of 60 percent stake of
Tiger Airways. It also plans to further strengthen its hold in the regional
aviation markets by acquiring Skywest, the regional operator.
The biggest beneficiary of these maneuvers will be Virgin
Australia which will consolidate its position in the region and be able to
fulfill its cherished wish of becoming the airline of choice in the region.
1 comment:
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