Etihad up stake in Virgin Australia

first_imgVirgin Australia has intensified its capacity in the last 12 months in an effort to generate a larger market share, reporting net loss of AU$98.1 million for the year to June 2013. Etihad Airways has purchased 16 million new shares in Virgin Australia, surpassing Richard Branson’s Virgin Group to become the airline’s third largest investor. The increase in holdings has made the Abu Dhabi-based carrier an “anchor shareholder”, according to Etihad chief executive James Hogan, the Herald Sun reported. The Foreign Investment Review Board has approved Etihad to increase its stake in Virgin to a maximum of 19.9 percent, with the airline keen to reach this target. Air New Zealand is Virgin Australia’s largest shareholder, maintaining a 22.9 percent stake in the business, followed by Singapore Airlines holding 19.9 percent. The Australian Competition and Consumer Commission recently granted approval for Air NZ to increase its share to 25.9 percent but the Kiwi carrier has insisted it is not looking to control Virgin. Source = ETB News: P.T.last_img

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