Air New Zealand Buys Virgin Blue Stake

AIR NEW ZEALAND has acquired a significant shareholding in Australian carrier Virgin Blue, strengthening ties between the two countries. The airlines are already Trans Tasman alliance partners and this development will bring further consolidation in the Australasian market, although Air New Zealand’s Chief Executive Officer, Rob Fyfe, confirmed there is no intention to make a takeover bid.

The New Zealand national carrier has obtained Australian Foreign Investment Review Board approval to purchase up to 14.99% per cent of Virgin Blue, a shareholding that will keep the total foreign ownership of the company below the 49% statutory limit.

“The investment in Virgin Blue is part of Air New Zealand’s strategy to develop scale and reach in this region,” said Rob Fyfe. “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 for Air New Zealand.”