Etihad Airways today (September 3rd) confirmed its equity stake in Virgin Australia Holdings has now reached 10%, thereby doubling its stake in the Australia carrier.
This represents 221 million shares which have been bought on the open market over
The move follows Etihad Airways receiving Foreign Investment Review Board (FIRB)
approval to increase its holding from 5% to 10% some six weeks ago.
Etihad Airways President and Chief Executive Officer, Mr James Hogan, said: “We are
very pleased to have reached this threshold.
“We support the management strategy of Virgin Australia and will continue to work
closely with them on ways to improve our business.
Mr Hogan again reiterated that Etihad Airways 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 Airways and Virgin Australia have developed a multi-tiered partnership that includes code-sharing on flights, joint marketing initiatives and reciprocal earn-and-burn on their respective frequent flier programmes.
Mr Hogan said he was confident the equity stake would lead to more revenue
“This further cements our commercial partnership as we continue to explore areas of
even closer co-operation such as operational synergies, shared IT infrastructure and other forms of cost sharing efficiency.”