News

Air New Zealand sells Virgin Australia stake

22 Jun 2016 by Clement Huang
Air New Zealand has sold a 19.9 per cent stake in Virgin Australia to Chinese conglomerate Nanshan Group. The A$262 million (US$195 million) deal will see Nanshan enjoy a large slice of the pie, along with other main investors including Singapore Airlines (20.1%), Etihad Airways (21.8%), the Virgin Group (8.7%) and fellow Chinese group HNA (13%). Air New Zealand will retain a 2.5 per cent stake in the airline. "We believe Nanshan Group will be a very strong, positive and complimentary shareholder for Virgin Australia," Air New Zealand chairman Tony Carter told The Sydney Morning Herald. "The sale will allow Air New Zealand to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia on the trans-Tasman network". The acquisition of stakes in airlines is a growing trend with positive benefits. Etihad Airways’ 24 per cent stake in Jet Airways, for instance, contributed significantly to the turnaround of the Indian carrier’s business. With Virgin Australia struggling to compete with Qantas, the opportunities that come with new stakeholders could help to revitalise the airline. For more information, visit airnewzealand.com, en.nanshan.com.cn and virginaustralia.com Clement Huang
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