What makes Virgin Australia Holdings Ltd., the second-largest competitor in a market with only 23 million passengers, such an attractive takeover target? The chance to weaken Qantas Airways Ltd. on international routes.
A potential purchase of a stake in Qantas Airways Ltd. by the Australian government may spur a rally in the carrier’s debt as the move would boost support for the company’s investment-grade credit rating.
Qantas Airways Ltd. rose the most in seven weeks after the government said it was considering whether to lift a cap on foreign ownership of the airline to “level the playing field” with Virgin Australia Holdings Ltd.
United Continental Holdings Inc. is interested in Boeing Co.’s new 777 planes to bolster long-range flying as it braces for increased competition from Middle Eastern carriers such as Emirates, said Chief Financial Officer John Rainey.
Boeing Co. and Airbus SAS leave the Dubai Air Show with diverging prospects for their order momentum, with the Boeing 777X set to be a global hit while the Airbus A380 risks becoming a niche jet for Mideast carriers.
Abu Dhabi’s Mubadala sovereign wealth fund said its aerospace unit aims to become a risk- sharing partner of Airbus SAS and Boeing Co. on future plane programs as it develops an engineering-design capability.
Qatar Airways Ltd. said it jointly negotiated a deal for as many as 250 of Boeing Co.’s new 777 planes with Dubai-based Emirates, putting old rivalries aside to wring maximum value from the Persian Gulf’s growing dominance of the wide-body jet market.