Middle Eastern carrier Etihad Airways has acquired a 4% stake in Australian Carrier Virgin Australia for $35.6 million. According to Etihad, this move will help it to better compete with rivals Emirates and Qatar Airways whilst also boosting its global presence.
Etihad plans to acquire up to 10% of Virgin Australia at some point in the future.
This move could also add additional pressure to national carrier Qantas. Qantas has seen costs at its International business rise considerably, forcing the airline to announce that profits could fall by up to 90% for the year ending June 30 2012.