Air New Zealand Ltd (ASX:AIZ) has responded to media speculation by announcing they have not as yet purchased a stake in Virgin Blue Holdings Ltd (ASX:VBA).
The Sydney Morning Herald today reported that Air New Zealand intends to buy up to 15% of Virgin Blue.
According to the paper a strategic stake would give Air New Zealand an advantage in an aviation industry that is emerging through a downturn.
Air New Zealand is currently in the process of gaining regulatory approvals for its trans-Tasman alliance with Virgin Blue, however the alliance does not involve the company acquiring equity in Virgin.
Air New Zealand expects a final decision on the alliance by the end of this year.
Air New Zealand reported a profit of $16.9 million for the year ending 30 June 2009.
AIZ Price at posting:
85.0¢ Sentiment: None Disclosure: Held
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