News: Air NZ increases stake in Virgin Blue

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Air New Zealand has increased its stake in Virgin Blue Holdings Limited (ASX:VBA) to 14.9 per cent.

The airline says it bought the $145 million stake at 44 cents a share.

According to the New Zealand Airline Australia's Foreign Investment Review Board has given it the green light to acquire up to 14.99 per cent in Virgin Blue.

Richard Branson's Virgin Group has a 26 per cent holding, the additional 14.9% investment by Air New Zealand keeps Virgin Blue within the 49 per cent statutory foreign ownership for international airlines.

Air NZ Chief Executive Rob Fyfe reconfirmed his company didn't have any intention to move beyond the approved stake, or make a takeover bid.

Virgin Blue Holdings reported a half yearly profit of $21.3 million to June 30, 2010.