ETIHAD Airways yesterday confirmed that it has purchased an additional 9.9 per cent of shares in Virgin Australia, bringing its total stake to 19.9 per cent.
This is close to double the Middle Eastern carrier’s original stake of 10 per cent and means that Etihad has reached the threshold approved by Australia’s Foreign Investment Review Board in June 2013.
The airline’s purchases put it on a par with Singapore Airlines, which earlier this year also raised its stake in Virgin Australia from 10 to 19.9 per cent (TTG Asia e-Daily, June 21, 2013).
James Hogan, president and CEO of Etihad Airways, said: “(The increase stake in Virgin) reflects our strong support for the business strategy and management team of Virgin Australia and our enduring commitment to the Australian market.
“The (10-year) strategic partnership continues to deliver significant revenue streams and other benefits to each airline…Increasing our equity in Virgin Australia will further enrich the commercial benefits which the partnership delivers for both airlines as well as increasing the benefits to Australian travellers and visitors to Australia.”
