Singapore Airlines acquires a stake of Virgin Australia


The announcement comes as a time when global airlines have been increasing their levels of cooperation in the face of rising fuel prices. Reacting to the news, analysts state that it shows that Singapore Airlines, the second biggest airline in the world, is backing Virgin to counter the threat Qantas poses in Asia’s lucrative aviation market.

"Qantas' ambition to become a premium player in the Asia Pacific aviation market is meeting some stiff resistance, most notably from other key players in the region like Singapore Airlines," said City Index analyst Peter Esho."We see today's move by Singapore Airlines as a strategic shift down south to back Qantas' main domestic competitor.”