Etihad Airways has increased its stake in Virgin Australia to 10 per cent – the maximum shareholding it is currently allowed to take.
The Abu Dhabi-based airline has been building up its stake in Virgin Australia over recent weeks after Australia’s Foreign Investment Review Board (FIRB) gave approval for it to increase its holding from 5 to 10 per cent.
Despite the gradual increase in ownership, Etihad CEO James Hogan reiterated that the airline “wasn’t interested in becoming a majority shareholder or taking control of Virgin Australia”.
“Our small equity stake reflects the strong working relationship of both airlines and again demonstrates our enduring commitment to the Australian market,” he said.
Etihad increased its stake in Virgin Australia to 4.99 per cent in June and received the go-ahead from the Australian government to increase its equity stake to a maximum of 10 per cent in July.
Etihad also has stakes in Aer Lingus (3 per cent) and Air Berlin (29 per cent). It said last month it would be interested in raising its shareholding in Aer Lingus by buying Ryanair’s 29.8 per cent stake.
The airlines' multi-tiered partnership covers codesharing, joint marketing initiatives and reciprocal earn-and-burn on their respective frequent flyer programmes.
Hogan said he was confident the equity stake would lead to more revenue-generating and cost-saving opportunities.
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