Singapore Airlines has taken out a 10% stake in Virgin Australia.
The deal, valued at A$105m, has been approved under the Australian Government's Foreign Investment Policy.
Virgin and SQ already operate a partnership with sharing of flights, frequent flyer schemes and reciprocal access to lounges, and Virgin Australia today bought a 60 percent controlling interest in Singapore Airlines' subsidiary Tiger Airways Australia.
“Singapore Airlines is an important strategic alliance partner of Virgin Australia and we are very pleased to have their support as an investor," Virgin Australia Chief Executive Officer John Borghetti said in a statement, but denied that the additional investment would grant SQ a seat on Virgin Australia's board.
"We believe this investment demonstrates their confidence in our strategy and it enables Virgin Australia to fast-track its growth plans.”
Singapore Airlines CEO Goh Choon Phong praised Borghetti's "ongoing transformation at Virgin Australia, which has already resulted in a more competitive aviation market in Australia."
Other primary stakeholders in Virgin Australia include Sir Richard Branson’s 26% shareholding and a 19.9% stake held by Air New Zealand.
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