Etihad may increase Virgin Australia stake to 10%
Published: June 11, 2012
Virgin Australia (DJ) has no concerns about moves by Etihad (EY) to further increase its stake in the carrier to 10%, as reported by Australia’s The Age newspaper.
Abu Dhabi (AUH)-based EY last week acquired a 3.96% equity stake in DJ, and almost immediately increased it to 4.99% a day later ( ATW Daily News, June 7 ).
“We believe it’s a vote of confidence in our strategy and they want to have a part of it,” a DJ spokesperson told ATW .
That strategy has seen DJ move to take more of the business travel market both within Australia and grow internationally via strategic alliances and codeshares. However, sources suggest EY would be unlikely to do anything disruptive and have ruled out such dramatic moves as a hostile takeover.