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Air New Zealand Buys 14.9 Percent Stake in Virgin BlueJanuary 21, 2011 By: Jena Tesse Fox
Big news from the airline industry Down Under: The Wall Street Journal and other sources are reporting that New Zealand's flag-carrier Air New Zealand said on Friday that it now holds 14.9 percent of Australian carrier Virgin Blue Holdings Ltd. at a cost of $143 million.
The national carrier announced its plans to buy the stake late Thursday and said it has already secured approval from the Australian Foreign Investment Review Board. The share purchase was reportedly completed from existing cash resources, and Air New Zealand Chief Executive Office Rob Fyfe has stated that there are no plans to go over 14.99 percent.