Skywest shareholders back sale to Virgin Australia

Skywest Airlines shareholders have overwhelmingly backed the $99 million sale of the regional operator to Virgin

Australia.

Close to 100 per cent of voting shareholders at a scheme meeting in Singapore — where Skywest is incorporated — endorsed the deal announced in October.

Having already gained a tick from the competition regulator, Virgin now needs only approval from Australia’s Foreign Investment Review Board and the High Court of Singapore for the sale to proceed.

The acquisition will give Virgin access to the lucrative fly-in, fly-out market, with chief executive John Borghetti saying the carrier would invest to support Skywest’s growth. Skywest would adopt the Virgin brand but remain a separately managed entity that continued to service routes between Perth and WA regional destinations, including Broome, as well as charter flights to mine sites.

Virgin is still awaiting a green light from the Australian Competition and Consumer Commission for its $35 million bid to take a 60 per cent stake in discount airline Tiger Airways Australia.

Skywest last month posted a $S2.2 million ($1.7 million) loss for the first half of the financial year in a result executive chairman Jeff Chatfield said was affected by the carbon tax.

He said the second half had started strongly with more charter services and more passengers on scheduled flights.