Etihad Airways doubles stake in Virgin Australia to 19.9 per cent

Etihad Airways has nearly doubled its stake in Virgin Australia to 19.9 per cent as it continues to deepen its strategic partnership with the Australian carrier.

Etihad, which operates from its hub in Abu Dhabi, said it has reached the stake level approved by the Australia's Foreign Investment Review Board.

The increased stake reflects Etihad's commitment to the Australian market and to the 10-year strategic partnership it concluded with Virgin Australia in 2010, James Hogan, chief executive of the Dubai-based carrier, said in a statement on Thursday.

"The strategic partnership continues to deliver significant revenue streams and other benefits to each airline," he said.

Virgin is the major domestic rival to dominant Australian airline Qantas and interest in the budget carrier has intensified in recent months as competitors seek access to the nation's lucrative aviation market.

Air New Zealand and Singapore Airlines also hold large stakes in Virgin Australia.

Etihad's development strategy has rested on taking minority stakes in selected airlines and concluding partnerships.

It holds stakes in airberlin, Air Seychelles and Aer Lingus. It is to take a 49 per cent in Air Serbia in January and is waiting for approval of a 24 per cent stake in Jet Airways in India.