Air New Zealand buys into Virgin Blue
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Date: January 21, 2011
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Maddy Gerrard
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It was formally announced on Thursday January 20 that Air New Zealand has become a substantial shareholder of Virgin Blue, gaining approval from Australian Foreign Investment Review Board to purchase between 10% and 14.99% of Virgin Blue. The Trans Tasman alliance partners will collaborate on pricing, revenue management, schedules, capacity and routes between Australia and New Zealand, reflecting Air New Zealand’s strategy to develop “scale and reach” in the Tasman region. Chief executive of Air New Zealand Rob Fyfe asserts there was never any intention to make a takeover bid but rather saw the Tasman alliance with Virgin Blue as the first step towards growing its business in Australasia.
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