Etihad Airways buys 3.96% stake in Virgin Australia
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Etihad Airways announced that it h
as acquired a 3.96% stake in Virgin Australia Holdings. The stake has been built over recent weeks, through purchases on the open market.
Etihad Airways said it believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010.
Together, Etihad Airways (21) and V Australia (3) operate 24 flights a week between Abu Dhabi and Australia and passengers have access to a combined network of more than 150 destinations.
Last month Etihad Airways leased a Virgin Australia Boeing 777-300ER for use on its route between Abu Dhabi and Kuala Lumpur. The Abu Dhabi-based carrier’s purchase of a 3.96% stake in Virgin Australia represents the airline’s fourth acquisition in six months.
The airline stated that it bought the stake in the Australian carrier through purchases on the open market in recent weeks. No details were revealed about the price Etihad paid for the stake or whether it plans to increase the stake in the future.
“Etihad Airways believes that this equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership forged by the two carriers in August 2010,” the carrier said in a statement.
Eight-year old Etihad has also been actively seeking stakes in overseas carriers to help it compete with regional rivals Emirates and Qatar Airways.
