Etihad Airways has increased its stake in Virgin Australia to 22.9 per cent.
The Gulf airline raised its stake after purchasing 1.7 per cent of shares, according to a report in the Australian Financial Review.
The move would have been made possible after receiving Foreign Investment Review Board (FIRB) approval.
It means Etihad has now reached the maximum percentage share it is currently allowed to own in Virgin Australia.
Earlier this month, Etihad's 49 per cent stake in Alitalia was approved by the European Commission (see news, November 17).
Etihad also has also taken a share of Air Berlin, Aer Lingus, Air Seychelles, Air Serbia and Jet Airways.