Branson May Back Malaysian Budget Carrier

[preiffer]

Link to full article here.

British billionaire Richard Branson may be spreading his wings to Malaysia, where he is reportedly picking up a stake in the start-up long-haul budget airline AirAsia X, which plans to offer service to China, Europe and Australia.

The Star newspaper quoted unnamed sources who said Branson will take a 20% stake in the airline’s parent Fly Asian Express from its head Tony Fernandes, who owns 50%, and his deputy Kamarudin Meranum, who holds 30%. Fernandes controls the successful Malaysian regional budget airline AirAsia. There has been no response yet from Branson, owner of Virgin Atlantic.

cont'd....

Didn't we here of a similar alliance last year, albeit without any financial input[?]

45.

if he does it could make for some interesting connections for vs? but then again from a vs point of view, shouldnt he concentate on the lgw/man/gla fleet first?

[Scrooge]

You may have SQ putting a little pressure on him to get VS involved, while SQ can't be seen to be trying to influence carriers in their backyard directly, I am sure they would love to have some input in where this new carrier flies.

Well it's now official - the BBC reports a 20% stake purchased for an undisclosed sum.

Jonathan

My guess would be that SQ would not be amused, though at the end of the day this is a Virgin Group investment & nothing really to do with VS. It would be interesting to see the Virgin name being used though.

20% of another airline: no problem...

...little red cushions in UC: well that's another matter[B)]

45.

[preiffer]

Damn those little red pillows... [:(][:0]

No Money for the crew pay deal but money for a 20% stake in another airline!!!

[RichardMannion]

Originally posted by virgin is the best
No Money for the crew pay deal but money for a 20% stake in another airline!!!

Of course because if done right, his 20% investment will be worth a hell of a lot more. How much did he make from DJ in the first 2 years?

Thats the problem the crew at VS dont feel respected. Does Richard work for VS management!
I understand that a lot of money will be made from Air Asia but saying what you said Richard could be taken the wrong way as it has been.

[RichardMannion]

Originally posted by virgin is the best
Thats the problem the crew at VS dont feel respected. Does Richard work for VS management!
I understand that a lot of money will be made from Air Asia but saying what you said Richard could be taken the wrong way as it has been.

Bit lost here - which Richard are your referring to, me or SRB?

If you meant me, nope I don't work for VS management but I can see why he would do that kind of investment. It's a vicious circle basically, say he spent $xx million on the pay deal for staff, do you think everyone would be really that grateful? Would they expect it again in the future given that a precedent has been set? So in reality why would he bother, there is no shortage of people wanting to be crew - all comes down to supply and demand. Now putting up a large amoutn of money into a startup business and getting a damn good return, that's what SRB is all about - he's a business man at core.

I'm not intending to be harsh with any of the above, that's just brutual reality.

Thanks,
Richard