Singapore Airlines Ltd has increased its shareholdings in Virgin Australia Holdings Ltd from 10% to 19.9%. With the increase, the Singaporean based air carrier would boost its influence in Virgin Australia at a time where the burgeoning Southeast Asian market is becoming a source of lucrative routes.
Singapore Airlines' shareholdings make it at par with Air New Zealand, Australia's second largest air carrier. Both have a 19.9% share in Virgin Australia, the legal limit allowed before requring a full takeover be undertaken.
The airline market in Australia has become a busy marketplace for airlines seeking tie-ups and partnerships in the recent months. The mergers include Qantas entering into an alliance with Emirates.
The addition 9.9% shareholdings was purchased by Singapore Airlines for Aus$123 million or US$126 million from the Virgin Group of Richard Branson. With the purchase, Branson's shareholdings would retain 12.4% in the company.
A spokesperson for Singapore Airlines said it had no plans to further increase shareholdings in Virgin Australia.
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