Virgin Blue airline seeks to raise $189 million

The founding chief executive of Australia's second-biggest airline said he'll step down next year as the carrier Monday forecast a loss and tapped shareholders for cash to repair its weakened balance sheet.

Virgin Blue expects a loss of up 165 million Australian dollars for the year ended June 30 and is seeking to raise 231 million Australian dollars ($189 million) by issuing new shares, it said in a statement. The airline said its major shareholder, Richard Branson's Virgin Group, would support the capital raising.

"The operating environment over the last 12 months has been the most challenging in the airline's history," Virgin Blue said in a statement.

Get the full story at: USA Today - Today in the sky