Virgin Australia chief executive: China will play a vital role in our future growth
Virgin Australia chief executive John Borghetti showed great confidence in China, and believed China will be a key driver of the Australia-based airline’s development and profitability in the next one or two decades.
Virgin Australia chief executive John Borghetti shows great confidence in China and believes China is the lifeline of the airline’s development and a key contributor of its profitability in the next one or two decades. “The Chinese market will play a vital role in our future growth,” he said.
“China is the largest visitor source market of Australia, and 1.2 million tourists from China visited Australia in 2015. Besides, closer business links between the two countries and more frequent corporate travel have benefited Australia’s airlines as well.” shared Mr. Borghett.
As the number of Chinese visitors to Australia grew at an annual average rate of 19% from 2010 to 2015, China has been seen as Australia's fastest growing and the most valued inbound travel market.
Mr. Borghett said that the carrier’s growth and profitability would largely depend on the Asia Pacific region, with China as a key engine, as well as the United States. He also expected the remarkable progress of the company in the international market in the next five to 10 years would derive from these two markets.
In mid 2016, Shandong-based private company Nanshan Group bought 19.9% of Virgin Australia from shareholder Air New Zealand. The acquisition came just 10 days after another Chinese conglomerate, the HNA Group, invested USD 159 million into Virgin Australia for a 13% stake. Later, the HNA Group continued to increase its stake in the company, boosting Chinese interests in Virgin Australia to nearly 40%. (Translated by Claire)