Etihad Airways has taken a 4.99 per cent stake in Virgin Australia Holdings.
The Abu Dhabi-based carrier has built up the shareholding in Virgin Australia during the last few weeks and Etihad said it is interested "in building a larger stake over time but will only do so after receiving the necessary regulatory approvals".
Virgin Australia, formerly known as Virgin Blue, is 26 per cent owned by Richard Branson 's Virgin Group while Air New Zealand has a 20 per cent stake.
The airline added: “Etihad Airways believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010.
“It will enrich the commercial benefits which the alliance already provides for both airlines as well as increasing the benefits to Australian consumers and visitors to Australia.”
Together, Etihad (21) and V Australia (3) operate 24 flights a week between Abu Dhabi and Australia. Last month Etihad leased a Virgin Australia B777-300ER for use on its route between Abu Dhabi and Kuala Lumpur.
In a separate move, Etihad has launched a new joint campaign with Germany’s second largest carrier Air Berlin, to promote Abu Dhabi as a global gateway.
The ‘Hello Abu Dhabi. Hello World.’ slogan is similar to Emirates’ ‘Hello Tomorrow’ catchline, and comes in a week that the Abu Dhabi carrier announced it will take on the Dubai airline in the Brazil market by starting flights to Sao Paulo from June 2013.
Etihad purchased a 29 per cent stake in Air Berlin in December 2011 and last month took a 2.99 per cent share of Irish flag-carrier Aer Lingus.