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Etihad Airways acquires minority stakes in Virgin Australia

UAE’s national carrier Etihad Airways recently announced it has acquired a minority stake in the leading Australian carrier Virgin Australia.

The airline in a statement said that it has purchased a 4 percent stake in Virgin Australia. This is in compliance with the airline’s strategy of buying minority stakes in foreign carriers.

Ever since December last year, this is Etihad Airways’ fourth stake in another carrier which it has disclosed publicly. By regularly acquiring stakes in foreign carriers, Etihad Airways wants to remain ahead of its Middle East rivals Qatar Airways and Emirates.

James Hogan, CEO of Etihad Airways, said that the airline wants to build a strong business model by entering into partnerships.

According to the airline, it had to spend $35.6 million to acquire the stake in the Australian carrier, but wants to see its stake increased to 10 percent in the future.

Currently, Etihad Airways flights are being operated to several Australian cities. The airline is conducting a total of 21 flights every week to Brisbane, Melbourne and Sydney.

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