Air NZ keeps Virgin stake at 19.99% as Singapore buys in

Air New Zealand has kept its stake in partner airline Virgin Australia, buying 49.1 million shares to retain ownership at 19.99% after Singapore Airlines joined the shareholder register.

New Zealand's national carrier made the transaction at the same time as Singapore Airlines was issued a 10% stake in Virgin, it says in a statement. No dollar figure was put on the purchase, which at today's trading price equals some $A23.81 million.

Last month, Singapore Airlines paid $A105 million for a stake in Virgin, which was subsequently used to buy 60% of Tiger Airways and all of Skywest Airlines.

Virgin issued 245.6 million shares to Singapore Airlines at an issue price of 42.88 Australian cents apiece, meaning Air NZ had to buy more to prevent its own stake being diluted.

Air NZ says its purchase of Virgin shares equated to 2% of the Australian airline's stock.

The New Zealand carrier's shares rose 2.9% to $1.24 in trading today and have rallied 34% this year. Virgin's last traded at 48.5 Australian cents on the ASX.

(BusinessDesk)

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Rob Fyfe is certainly busy during his last few days. My gold elite xmas gift turned up today, not many choices but one of them an Ecoya pack. As he is an Ecoya director and shareholder, thought it looked dreadful pushing his own product down the throat of Air NZ customers. Time for a change. Will be looking at the related party disclosures in the accounts.

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I understand your disappoint. An Icebreaker top would have been better. Any other co's he's a director of he could have pushed.

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You are spot on ...i saw the Ecoya in the GE pack and it really stinks as he is linked to this company......EVEN WORSE....in his AIR NZ office he has a huge ECOYA poster - in his AIR NZ office can you believe??!!

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Surprising Mr Fyfe hasnt pushed harder for all Air NZ staff to be compulsorily dressed in ice breaker kit.

Anyway, the GE pack xmas gift choices are dreadful this year (along with the changes they made to the air points scheme).

Hopefully the new guy will turn things around.

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I'm hopeful the new guy will turn things around but I'm not optimistic. He has no experience in the airline industry and his leadership team choices are the same recycled losers who lay under pink shirt.

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You guys are lucky I have not seen my Gold Elite Pack yet!, i did see Fyfe also has Ecoya as an airpoints gift purchase as well, he is just lining his own pockets before he leaves the sinking ship he has been running for years, He only is walking away this late because of his 5 million bonus in the face of 100's of job losses while he climbs mountains, he's not been leading Air NZ for more than a year now, he has no care for the staff or the customers and i don't believe Chris will do it, he is only bottom line man brought in to make bigger profits, and to cut what the customer gets!

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NZ Market Snapshot

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HKD 6.2173 0.0415 0.67%
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DAX 8819.3 8834.7 8850.3 -1.50%
DJI 16373.1 16401.6 16380.4 0.12%
FTSE 6310.3 6320.3 6310.3 -0.68%
HKSE 23073.4 23231.5 23070.3 -0.25%
NI225 15115.3 15115.3 15111.2 -1.66%