Stronger ties for Air NZ and partners

AIR NEW ZEALAND chief executive Christopher Luxon will take a seat on Virgin Australia’s board, giving the national carrier more influence over its Aussie partner.

Virgin invited Air New Zealand and fellow airline shareholders Singapore Airlines and Etihad Airways on to its board following a A$350 million (NZ$373m) capital raising last month.

The capital injection boosted the three airlines’ stakes in Virgin to 67 per cent, of which Air New Zealand is the single largest holder at 26 per cent, followed by Singapore Airlines’21.17 per cent.

Etihad boss James Hogan would also join the Virgin Australia board while Singapore Airlines is yet to announce its representative.

The appointments will raise the stakes in Virgin’s battle for Australia’s domestic market with Qantas.

Centre for Aviation (CAPA) chief analyst Brendan Sobie said the board appointments were longsignalled and only surprising in their delay. ‘‘The reason it has taken so long will be Virgin wanting to stay independent for as long as possible.’’

Last week it was announced that Air New Zealand and Singapore Airlines would form a revenue sharing alliance on all routes between New Zealand with Singapore.

‘‘Air New Zealand’s coverage of Europe and Southeast Asia is relatively weak, so it needs these partnerships and network access, like with Virgin Australia and Singapore Airlines,’’ Sobie said.