Airline News
Etihad increases stake in Virgin Australia
February 3rd 2015
Etihad Airways last week increased its stake in Virgin Australia by 1.3% to 24.2%, not far shy of the Australian airline's largest shareholder, Air New Zealand (Air NZ), which owns 25.99%. Singapore Airlines (SIA) has a 22.8% stake in Virgin. Read More » The latest movement on the carrier’s register takes the combined holdings of the three foreign airlines, and Richard Branson's Virgin Group which has a 10% stake, to 82%.
Etihad last upped its investment in Virgin last November when it spent more than A$26 million for an extra 1.7% in Virgin, putting it at its then approved maximum holding. Etihad said that the latest off-market transaction, valued at A$22 million, followed clearance from Australia’s Foreign Investment Review Board.
Interestingly, the move coincides with Qantas Airways’ record profit forecast, which if materialised, will be used to upgrade its fleet and launch new routes, further increasing competition between Australia’s flag carrier and Virgin, analysts said. The latter is in the process of finding a replacement for chairman Neil Chatfield, who announced in October that he would relinquish the reins at Virgin after seven years in the role. The chief executives of Air NZ, Etihad and SIA are board members.
