Pursuits
Virgin Raises Private-Equity Cash to Add Pressure on Qantas
This article is for subscribers only.
Virgin Australia Holdings Ltd., the country’s second-biggest airline, raised A$336 million ($314 million) selling a stake in its frequent-flier program, providing cash for it to keep harrying Qantas Airways Ltd.
Affinity Equity Partners will buy a 35 percent stake in the Velocity loyalty program, giving the entire unit an enterprise value of A$960 million, Brisbane-based Virgin said in a statement today. Group losses before tax and one-time items were A$212 million in the 12 months ended June 30, the company said.