19-Jul-2012 3:07 PM

Etihad Airways cleared to acquire up to 10% of Virgin Australia

Etihad Airways welcomed (19-Jul-2012) the decision by the Australian Government to allow the airline to increase its equity stake in Virgin Australia Holdings to a maximum of 10%. Etihad Airways currently has a 4.99% stake in Virgin Australia, acquired earlier this year, and had applied to the Foreign Investment Review Board (FIRB) to raise the level of its investment. The purchase was made following the development of a multi-tiered partnership between the two airlines that includes code-sharing on flights, joint marketing initiatives and reciprocal earn-and-burn on their respective frequent flier programmes. Together, Etihad Airways and Virgin Australia currently operate 24 weekly services between Australia and Abu Dhabi. Etihad Airways stated the strategic partnership "has already delivered significant revenues to each airline. It is expected that the equity stake in Virgin Australia will lead to further revenue generating opportunities". [more - original PR]

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