Etihad in no rush to get Virgin seat
Three days after Virgin warned it faces an annual loss of up to $110 million, Mr Hogan reiterated his support for its management's strategy, which is focused on turning the airline into an upmarket competitor to Qantas.
"They are just going through a tough patch," he said. "We believe in the strategy of Virgin Australia ... I think they have done a good job in the marketplace."
Mr Hogan said Etihad still wanted to raise its stake in Virgin to 19.9 per cent but it was yet to decide how quickly it would try to do so.
Etihad lifted its holdings in Virgin to 10.5 per cent last month, shortly after gaining approval from the Foreign Investment Review Board to go as high as 19.9 per cent. "The pace of that [likely increase in holdings] I can't determine, but we are committed to our strategy of working with Virgin Australia," he said.
Mr Hogan said he had not asked for a seat on Virgin's board. "At the end of the day the board has to ask you as a shareholder," he said. "The board of Virgin Australia are very competent. There is no pressing need for us to sit on the board, quite frankly."
Frequently Asked Questions about this Article…
No — Etihad chief executive James Hogan said there is "no pressing need" for Etihad to have a seat on Virgin Australia’s board and he has not asked for one. He also said the Virgin board is competent and that board representation would be a matter for the board to consider as a shareholder.
Etihad recently lifted its holding in Virgin Australia to 10.5% and says it still wants to raise its stake to 19.9%.
Yes — Etihad gained approval from the Foreign Investment Review Board (FIRB) to increase its holding in Virgin Australia up to 19.9%.
According to James Hogan, Etihad is committed to its strategy of working with Virgin Australia and increasing its cornerstone stake; he reiterated support for Virgin’s management and their strategy to reposition the airline as an upmarket competitor to Qantas.
Yes — the article notes that Virgin Australia warned it faces an annual loss of up to $110 million.
Hogan said Etihad believes in Virgin Australia’s strategy, describing management as having done a good job in the marketplace. He acknowledged Virgin is "going through a tough patch" but supports its push to become an upmarket competitor to Qantas.
No — Hogan said Etihad wants to raise its stake to 19.9% but has not decided how quickly it will do so and that he cannot determine the pace of any further increases.
Based on the article, Etihad’s stance signals continued support for Virgin Australia’s management and a commitment to increasing its cornerstone stake, while also not seeking immediate board control. The article does not provide specific investor guidance beyond those facts.
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