Friday 21 January 2011

Air New Zealand buys "substantial stake" in Virgin Blue

Air New Zealand has just notified the ASX that it has become a substantial shareholder in Virgin Blue.

NZ ceo Rob Fyfe said there's no intention to make a full takeover bid for the carrier, but said the share purchase "is part of Air New Zealand's strategy to develop scale and reach in this region".

Air NZ has obtained Foreign Investment Review Board approval to purchase up to 14.99% of Virgin Blue.

"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," Fyfe said.

More information in tomorrow's Travel Daily.

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