Etihad Airways announced that the Australian Government granted the Abu Dhabi based carrier the go-ahead  to increase its equity stake in Virgin Australia Holdings to a ceiling of 10 per cent. Etihad Airways currently has a 4.99 per cent stake in Virgin Australia, acquired earlier this year, and had previously applied to the Foreign Investment Review Board (FIRB) to raise the level of its investment.

The purchase was made following the development of a multi-tiered partnership between the two airlines that covers code-sharing on flights, joint marketing initiatives and reciprocal earn-and-burn on their respective frequent flier programs.  

Combined, Etihad Airways and Virgin Australia currently operate 24 flights per week between Australia and Abu Dhabi offering Australian travellers and visitors to Australia greater choice and access to a combined network of more than 285 international destinations.

The first Etihad Airways flights from Sydney to Abu Dhabi commenced in March 2007 and since then it alsostarted operating flights from Brisbane and Melbourne, with plans for services from Perth in future. In total, nearly two million passengers have flown with Etihad Airways between Australia and its Abu Dhabi hub.