Air New Zealand buys into Virgin Blue

Virgin Blue has a new shareholder, Air New Zealand.  ANZ has notified the Australian and New Zealand Stock Exchanges that it has become a substantial shareholder in the carrier, as part of a planned acquisition of a shareholding between 10% and 14.99%.

“The investment in Virgin Blue is part of Air New Zealand’s strategy to develop scale and reach in this region.  The Tasman alliance with Virgin Blue was the first step in this strategy.  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,” said Air New Zealand Chief Executive Officer Rob Fyfe.  He confirmed that there is no intention to make a takeover bid for Virgin Blue in which the UK Virgin Group has a 26% shareholding.

The decision to buy the shares was backed by the NZ Government, which is a 75% shareholder.  "We think there are opportunities for us to extend our relationship with Virgin," Mr Fyfe told a press conference in New Zealand.  "Assuming we can get competition approval, it may allow us to accelerate development of some long haul routes." www.virginblue.com.au www.airnz.co.nz

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