The Australian treasurer has granted its approval for Air New Zealand to raise its shareholding in Virgin Australia to 25.9%.
The green light follow’s the matter’s consideration by the Foreign Investment Review Board and a public inquiry by the Australian Competition and Consumer Commission.
The authorization means that Air NZ will acquire an additional 3% of shares taking its stake in Virgin to 22.9%, with permission to increase that by a further 3%.
“The opportunity to take our shareholding in Virgin to 25.9% and the recently extended Tasman Alliance with Virgin mean we can confidently work with Virgin to provide a strongly competitive, Australasia and international airline network,” chief executive Christopher Luxon said.
“We are fully supportive of the Virgin management team and strategy which provide an ideal complement to our own network and, importantly, an opportunity to participate in the Australian market with a respected partner.”
