Transportation Industry

Company Watch - Virgin Group

AirGuide Business, July 21, 2008

7/21/2008

Toll Holdings, the major stockholder in Australia's second-largest airline said Monday it would dispose of almost all of its shares, cutting its exposure to an industry that is recoiling from soaring fuel prices. Logistics and freight group Toll Holdings Ltd. said it would offload all but 1.7 percent of its 62.7 percent holding in Virgin Blue Holdings Ltd. in a special dividend to shareholders. In the special dividend, Toll shareholders will receive one Virgin Blue share for every Toll share they hold. The distribution is worth approximately 330 million Australian dollars (US$319.5 million). Virgin Blue holds about a third of Australia's domestic aviation market, where it competes against Qantas Airways Ltd. and Qantas' budget carrier Jetstar. Virgin Blue also flies to New Zealand, Fiji and Tonga. The airline has watched its shares fall by about 75 percent from around A$2 in January. 7/14/2008

Virgin Blue, Australia's second-biggest airline, said on Friday it would cut capacity by about 3 percent, in addition to a previously announced 6 percent reduction, in 2008/09 fiscal to combat rising fuel costs. Virgin also said it would introduce new baggage fees from mid August and add a new excess baggage fee from September. 7/18/2008

Virgin Blue, Australia's second-biggest airline, said on Friday it would introduce new baggage fees from mid August and add a new excess baggage fee from September. 7/18/2008

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