Air New Zealand buys stake in Virgin Blue
- Latest News
- Friday, 21 January 2011
Air New Zealand chief executive Rob Fyfe says there is no intention to make a takeover bid for Virgin Blue, something he confirmed to the Australian airline’s chief executive, John Borghetti, in a telephone call.
Air New Zealand has obtained Australian Foreign Investment Review Board approval to purchase up to 14.99 per cent of Virgin Blue; a shareholding which it believes will keep the total foreign ownership of Virgin Blue within the statutory limit of 49 per cent. The UK-based Virgin Group has a 26 per cent shareholding.
“The investment in Virgin Blue is part of Air New Zealand ’s strategy to develop scale and reach in this region. The Tasman alliance with Virgin Blue was the first step in this strategy. This investment cements the emerging relationship between our two airlines and demonstrates the confidence we have in Virgin Blue both as an entity and as a partner,” said Fyfe.
