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.
Toll Holdings Ltd., the largest Asia-Pacific logistics company, is able to spend A$1 billion ($925 million) on acquisitions to boost its global freight- forwarding operations, according to Macquarie Group Ltd.
Qantas Airways Ltd., Australia’s largest carrier, will fly seven Asian routes earlier in the day as a partnership with Emirates gives it more scope to run flights at times that appeal to business class passengers.
Virgin Australia Holdings Ltd.’s plan to buy two domestic airlines faces a “very complicated” review because of concerns the country’s aviation market will be reduced to a duopoly, the nation’s antitrust regulator said.
Qantas Airways Ltd., Australia’s largest carrier, said first-half profit more than doubled after it took cash from canceling orders for Boeing Co. 787 jets and cut losses on long-haul routes. The shares hit a 10-month high.
Qantas Airways Ltd., working to end losses on overseas routes, rose the most in six weeks in Sydney trading after the Australian Financial Review said the carrier was close to forming a long-haul alliance with Emirates Airline.
Qantas Airways Ltd. , and Virgin Blue Holdings Ltd. gained in Sydney trading after Royal Bank of Scotland Group Plc and Macquarie Group Ltd. analysts today affirmed “buy” ratings on the airline stocks.