EY builds VA stake

Etihad Airways has confirmed it has increased its stake in Virgin Australia to ten percent after accumulating up to 221 million shares in the Australian carrier over the past few months.

The increase comes less than three months after announcing its initial 3.96 percent equity investment in Virgin and, according to the airline, comes after receiving Foreign Investment Review Board approval to increase its holding on the airline from five percent to ten percent.

Although stressing the UAE airline has no interest in becoming a majority shareholder in Virgin, Etihad president James Hogan explained the investment “reflects” the relationship between both airlines and its “commitment to the Australian market”.

“We are very pleased to have reached this threshold,” Mr Hogan said.

“We support the management strategy of Virgin Australia and will continue to work closely with them on ways to improve our business.”

The UAE airline’s chief added that the equity stake would also contribute to generating more revenue opportunities.
Building on its international network, Etihad Airways announced late last month a new “win-win” codeshare agreement with Chinese carrier, China Eastern.

Sourced: etravelblackboardasia