Virgin just released a statement, and it’s fair to say the airline is getting fed up with all this talk of blocking its capital raising, or taking the foreign ownership shackles of its competitor Qantas.
In the statement, Virgin says a “full and proper” investigation should be carried out into Qantas’ claims that it must, at all costs, maintain a 65% share of the domestic aviation market.
It also makes the fair point that its capital raising is completely legal.
Here’s the full statement:
Over the last three years, Virgin Australia has had a consistent strategy of bringing strong competition to all key market segments, including the corporate, government, regional, leisure and budget segments.
We have made significant progress in this regard, despite our major competitor’s publically-stated strategy of maintaining a 65 per cent share of the Australian domestic aviation market at all costs. Virgin Australia believes that a level playing field should include a full and proper investigation of our major competitor’s 65 per cent “line in the sand” policy.
Virgin Australia is a publically listed company and it fully complies with all its legal obligations. Virgin Australia’s recently announced Entitlement Offer is designed to raise funds, which is something that any publically listed company can do.
As an ASX-listed company, our aim is to create a long-term sustainable and profitable business, for the benefit of our shareholders, our 9,500 employees, our customers and ultimately for the Australian economy.
The Qantas Sale Act is a matter between the Government and Qantas.