Virgin Australia Turns to Samoa, Etihad Debt in Qantas Fight
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Virgin Australia Holdings Ltd. is stepping up its efforts to take on Qantas Airways Ltd.’s dominance of the country’s domestic travel market.
The Brisbane-based company has the third-highest debt ratio among global airlines as it takes on loans to fund this battle. Virgin is pledging its head office building for a new bank loan, taking out credit lines from Air New Zealand Ltd., Etihad Airways PJSC, and Singapore Airlines Ltd., all big shareholders in Virgin Australia. It also has a credit line from a joint venture with the Samoan government.