Air New Zealand said Thursday it had boosted its stake in Virgin Australia to 23 per cent and was considering buying more, but denied any plans to seize control of the discount carrier.
The airline said it had purchased an additional three per cent and informed Australian regulators it wanted to buy another three per cent, which would take its total stake to 26 per cent.
"The additional interest affirms Air New Zealand's strong belief and confidence in Virgin Australia and the strategy it is pursuing under the leadership of (Virgin chief) John Borghetti and his team," it said in a statement.
"Air New Zealand is not seeking a position on the board of Virgin Australia nor does it have the intention of obtaining control of Virgin Australia."
The Auckland-based flag carrier has a long-standing alliance with Virgin Australia to cooperate on trans-Tasman routes, where Australia's Qantas is their main rival.
It said Australia's competition watchdog had told it that public hearings would be held into the airline's plans to increase its Virgin Australia shareholding.
Virgin Group chief Richard Branson last month said he would be open to the possibility of selling his remaining stake in Virgin Australia.
Branson's group, which founded Virgin Australia as a rival to Qantas in 2000, holds about 12.5 per cent of the airline.
Abu Dhabi-based Etihad Airways and Singapore Airlines also have major stakes in the carrier, which is now Australia's second-largest airline.
SOURCE
Hmm, it seems that everyone wants a piece of the airline other than the owner Richard Branson himself. Is he growing jaded of the aviation industry? Monetary returns compared to investment amount doesn't tally? Only he himself knows why he's "giving up" on the airline.
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