WELLINGTON, June 17 BusinessDesk - Air New Zealand has increased its cornerstone shareholding in Virgin Australia to the maximum allowed under Australia's foreign investment rules.
The national carrier now owns 25.99 per cent of the Australian budget carrier, from a previous 24.46 per cent, it said in a statement.
The company has lifted its stake three per cent since October last year, when it sought approval from the Australian Treasurer after gaining consent from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.
The current level is the maximum allowed by Australia's foreign investor regulator.
Air New Zealand formed a partnership with Virgin, providing links with its flights into Australia, after the failure of its Australian-based airline Ansett in 2001. Virgin Australia's other major shareholders are Etihad and Singapore Airlines.
The shares in Air NZ last traded at $NZ2.265, edging off last Thursday's seven-year high of $NZ2.27, and have advanced 38 per cent this year.
Virgin Australia shares last traded at A43 cents.
