Virgin Australia’s biggest shareholder, Air New Zealand, is helping the Australian airline out with a AUD 131.2 million loan.
Other Virgin Australia shareholders will chip in too, boosting the total loan to AUD 424 million for 12 months.
Air New Zealand, Etihad, Singapore Airlines and the Virgin Group together own more than 82% of Virgin Australia. Air New Zealand, which holds 26%, is the largest shareholder.
“This is an initial step in strengthening Virgin Australia’s liquidity while the company commences a review of its capital structure,” Air New Zealand said in a statement to the New Zealand Stock Exchange reported by Fairfax and other media sources in New Zealand.
Virgin made a AUD 938 million net loss for the year to 30 June 2015. Air New Zealand made a record profit of AUD 327 million after tax in the same period.
Written by Peter Needham