Etihad Airways is seeking regulatory approval to lift its stake in Virgin Australia to almost 23% in a move that is certain to again raise the hackles of Qantas.
The Middle Eastern carrier has lodged an application with the Foreign Investment Review Board (FIRB) and has used mechanisms included in the Corporations Act to argue its case.
Etihad currently owns 19.9% of Virgin Australia and under investment “creep provisions” the airline can increase its shareholding by 3% every six months, subject to approval of the FIRB.
The bid will fan the flames of a recent bitter debate that has seen Qantas attack Virgin Australia for being controlled by foreign airlines. Between them, Etihad, Singapore Airlines and Air New Zealand own around 65% of Virgin Australia.
Etihad chief executive James Hogan, who will take a seat on the Virgin Australia board, denied earlier this month that the airlines were planning a ‘virtual takeover’ of the Australian carrier.
Air NZ chief executive Christopher Luxon is also taking a seat on the board.
