Virgin Blue Exits Talks on Budget Airline
Friday May 13, 3:25 am ET
Australian Carrier Virgin Blue Exits Talks on Setting Up Low-Cost Airline in Macau
HONG KONG (AP) -- Australian carrier Virgin Blue has withdrawn from talks about setting up a low-cost airline in the Chinese gambling enclave of Macau, a company involved in the proposal said Friday.
Shun Tak Holdings Ltd., the flagship company of gaming mogul Stanley Ho, said Virgin Blue had pulled out of the plan, but that the plan was still being "actively" discussed with Air Macau Co., currently the only airline based on the island.
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The two companies have been exploring the possibility of operating low-cost air services from Macau to serve the booming mainland Cina market since late last year.
Shortly before Virgin Blue Holding Ltd.'s decision to shelve its Macau plans became known, the company said it had submitted documents to the Australian government outlining proposals for a trans-Pacific airline.
Macau, a former Portuguese colony that reverted to Chinese sovereignty in 1999, draws thousands of gamblers from mainland China and Hong Kong, just 40 miles (64 kilometers) to the east.
Its government has been taking measures to liberalize and boost competition in its tourism-dependent economy after it ended a four-decade monopoly held by Hong Kong tycoon Stanley Ho on its gambling industry in 2002.
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