Etihad buys Virgin Australia stake to expand presence

Abu Dhabi's Etihad Airways has bought a 4% stake in Virgin Australia, in a bid to expand its global presence.

Etihad said it has acquired the stake for $35.6m (£23.1m) and added that it was keen to raise its holding in Virgin Australia to as much as 10%.

This is the fourth time since December last year that Etihad has picked up a stake in another airline.

The firm said that acquiring these stakes will help it to take on rivals such as Emirates and Qatar Airways.

"We're building a strong business model. And part of that business model is partnerships," James Hogan, chief executive of Etihad, was quoted as saying by the Associated Press.

"We do have two large competitors on our doorstep. And we will never match their aircraft order book."

Source & Image : BBC