Air NZ raises stake in Virgin Australia
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Air New Zealand has raised its stake in Virgin Australia by 5%, bordering the takeover threshold of 19.9%. The airline is now expected to seek board representation but has made no indication that it wishes to take its take further. According to The Australian, Air NZ is not in takeover talks with Virgin Group which holds a 25.6% controlling stake in the Australian carrier.
Air NZ Chief Executive Officer Rob Fyfe said; “Our increased investment in Virgin Australia continues Air New Zealand’s strategy to develop scale and reach in this region.
“The trans-Tasman Alliance with Virgin Australia was the first step in this strategy, followed by our initial investment in January of this year. This increased investment demonstrates our continued belief in the strategy that Virgin Australia is pursuing and our confidence in the Virgin Australia management team to deliver this strategy.”
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