Etihad increases its stake in Virgin Australia

Etihad Airways has increased its equity stake in Virgin Australia Holdings to nearly 5 per cent, following news that the carrier plans to seek a larger Asian footprint.

"Etihad Airways' equity stake in Virgin Australia Holdings has now reached 4.99 per cent," the airline said today in a statement.

"The company remains interested in building a larger stake over time but will only do so after receiving the necessary regulatory approvals."

The Abu Dhabi-based airline yesterday said it paid US$35.6 million (Dh130.7m) through market purchases over the past few weeks for the 3.96 per cent holding in Australia's second-largest airline.

James Hogan, the president and chief executive of Etihad, said yesterday that the airline plans to raise its stake to 10 per cent.

But the carrier needs Australian Foreign Investment Review Board approval to increase its stake above 4.9 per cent and chief executive James Hogan said the airline was in talks to do this, according to a report by AFP.

- The National staff

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