(MENAFN- Arab Times) Abu Dhabi's fast-growing Etihad Airways says it has received approval from the Australian government to boost its stake in Virgin Australia to as much as 10 percent.
The government-backed Gulf carrier on Thursday welcomed the decision by Australia's Foreign Investment Review Board, which will allow it to double the 4.99 percent stake in the Australian carrier it holds now.
Etihad first disclosed it had taken a stake in Virgin Australia last month.
It has also amassed minority stakes in overseas carriers Air Berlin, Air Seychelles and Aer Lingus. The purchases are a way for Etihad to gain an edge over larger Gulf rivals Emirates and Qatar Airways.
The purchase was made following the development of a highly successful multi-tiered partnership between the two airlines that includes code-sharing on flights, joint marketing initiatives and reciprocal earn-and-burn on their respective frequent flier programs.
Together, Etihad Airways and Virgin Australia currently operate 24 flights per week between Australia and Abu Dhabi offering Australian travellers and visitors to Australia greater choice and access to a combined network of more than 285 global destinations.
The strategic partnership has already delivered significant revenues to each airline. It is expected that the equity stake in Virgin Australia will lead to further revenue generating opportunities.
The first Etihad Airways flights from Sydney to Abu Dhabi took place in March 2007 and since then it has started flights from Brisbane and Melbourne, with plans for services from Perth in future.
In total, nearly two million passengers have flown with Etihad Airways between Australia and its Abu Dhabi hub.
Etihad Airways has three regional offices and a line maintenance facility in Australia, and now employs more than 300 Australian members of staff who are based in Australia, Abu Dhabi and at stations around the world.
It is estimated that Etihad Airways' passengers have spent more than AUD$1.5 billion locally on hotels, tours, restaurants, retail shopping and other tourist activities in Australia.
The airline's aircraft, office, marketing and selling costs have directly contributed more than AUD$540 million to Australia's GDP.
Etihad Airways has invested strongly in the local community, becoming a trusted sponsor to Australian sporting and cultural sectors, not least through its long-term commitment to Etihad Stadium in Melbourne.
Etihad Airways is very proud to have been, and continues to be, a good friend to Australia. At the same time, Australia has been a great success for Etihad Airways.
Etihad Airways, the national airline of the United Arab Emirates, began operations in 2003, and in 2011 carried 8.3 million passengers. From its hub at Abu Dhabi International Airport, Etihad Airways serves 85 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and North America, with a fleet of 67 Airbus and Boeing aircraft, and 100 aircraft on order, including 10 Airbus A380s, the world's largest passenger aircraft. Etihad Airways also hold equity investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus.
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