Air New Zealandhas raised its stake in Virgin Australia by 5%, bordering the takeoverthreshold of 19.9%. The airline is now expected to seek board representationbut has made no indication that it wishes to extend its take further.
Air NZ saidin a statement yesterday that it is not planning to make a takeover bid for theAussie carrier. The Australian Air Navigation Act allows a foreign ownershipcap of 49%.
“Our increased investment in Virgin Australia continues AirNew Zealand’s strategy to develop scale andreach in this region,” said Rob Fyfe, CEO of Air NZ.