Air NZ
(ASX:AIZ) plans to raise its stake in Virgin Australia Holdings Limited
(ASX:VAH) to 25.9 per cent after getting the green light from Australian authorities.
Air NZ says it has approval from the Australian Treasurer to lift its stake after gaining consent from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.
New Zealand's national carrier plans to acquire an additional three per cent of shares in Virgin Australia under an existing forward contract and acquire a further three per cent of the stock under creep provisions in Australian regulations.
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 Virgin Group and Singapore Airlines.
Virgin booked a net loss of $98.1 million in fiscal 2013.
