Who Wants to Buy an Airline Now? Virgin Australia Is Wooing Bidders
Skift Take
Many airlines will go bust during the Covid-19 recovery. But Virgin Australia may just stick around. The airline has lost a lot of money over the years, but it is based in a robust market and has just one major competitor.
During the best of times, with a booming Australian economy and only one key competitor, Virgin Australia regularly disappointed investors, including foreign airlines that regularly pumped in money, seeking a foothold into a lucrative market.
Yet the airline, which filed for bankruptcy in April, is among the hottest airline investment opportunities, with as many as eight entities making serious bids for the failed, 20-year-old carrier, according to the Sydney Morning Herald. The newspaper suggests that three companies have the strongest chance — two private equity firms, Bain Capital and BGH Capital, and Brookfield, a Canadian asset management firm.
What do they see?
It's not exactly clear, since the leading players do not need to put together full rescue bids until June 12. But there are several reasons Virgin Australia may be intriguing to outsiders, despite making a full-year profit just twice i
