As a part of a $351.5 million capital raising Singapore Airlines, Etihad Airways and Air New Zealand will increase their stakes in Virgin Australia to almost 70 per cent.
According to reports national carrier will face criticism from union heavyweights at a meeting next to be held next Wednesday prompted by last week's decision by Qantas Airways to slash 1,000 jobs.
The airline saw its share price hit a record low yesterday as it had its credit rating cut to junk last week.
As the parent company Qantas Airways finds ways to save cost, Jetstar will diminish operations from Darwin and move its three aircraft based in the city to Adelaide. The company will employ about 120 staff and base four A320 aircraft in Adelaide from March 30 next year as part of a major overhaul. However, some jobs will be filled by staff transferred from interstate.
Tigerair is about to introduce a new Adelaide route which will cater to fly an extra 800,000 passengers through Queensland each year. This major expansion will also generate 150 new jobs. Among the newly created jobs 120 will be in Brisbane and 30 others elsewhere.
Qantas is trying to prevent Virgin Australia's foreign airline shareholders from adding $350 million into the airline, suggesting those funds are bankrolling an unrealistic fare war and expansion.
The national airline is trying for a Government guarantee to support its operations.
The Australian and International Pilots Association (AIPA) have welcomed the call for a national conversation about any easing of foreign ownership restrictions on Qantas by Treasurer Joe Hockey. Alan Joyce, Qantas boss said that the airline needs Canberra to immediately address ownership regulations or risk investments such as a heavy maintenance base at Brisbane.
Yesterday, Qatar Airways has announced considerable increase in capacity to Sri Lanka with one of its triple-daily-flights to the capital city of Colombo, A narrow-bodied Airbus 320 would now be plying along with the airline's flagship wide-bodied Boeing 777.
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