Air NZ ups stake in Virgin Australia

Air NZ ups stake in Virgin Australia
By admin


Air New Zealand has increased its cornerstone shareholding in Virgin Australia to the maximum allowed under Australia's foreign investment rules.

The national carrier now owns 25.99% of the Australian budget carrier, from a previous 24.46%, it said in a statement.

The company has lifted its stake three per cent since October last year, when it sought approval from the Australian Treasurer after gaining consent from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

The current level is the maximum allowed by Australia's foreign investor regulator.

Air New Zealand formed a partnership with Virgin, providing links with its flights into Australia, after the failure of its Australian-based airline Ansett in 2001. Virgin Australia's other major shareholders are Virgin Group and Singapore Airlines.

The shares in Air NZ last traded at NZ$2.60, edging off last Thursday's seven-year high of NZ$2.70, and have advanced 38% this year.

Virgin Australia shares last traded at $0.43.

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