#Virgin Australia invests in Skywest

Fierce competition between major airlines reaching into regional Australia’s mining areas notched up another peg today, with Virgin Australia investing $8m in a regional carrier.
The company, which operates internationally and domestically, has taken a potential 10 per cent stake in WA staple Skywest.

Skywest already operates its aircraft with Virgin and plans to use the investment to expand their services, and Virgin Australia will boost its integrated services to business travellers.

Last year Virgin created new routes to the Queensland mining centres of Gladstone and Emerald and to Port Macquarie in NSW.

Skywest is flying new turbo-prop ATR 72 aircraft wet leased from Virgin Australia on the routes, with plans to expand the fleet – in Virgin Australia livery – from four to 12 over the next 18 months.

Virgin’s chief financial officer Sankar Narayan said there was “plenty of opportuntiy to expand our regional footprint” with the Australian Competition and Consumer Commission approving the existing arrangements with Skywest to help cater for the mining industry expansion.

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