Air NZ looks to jettison Virgin stake

Air NZ is looking at selling its stake in Virgin Australia, as it does not want to stay a large minority shareholder. Air NZ holds a 25.9% stake in Virgin worth about A$344m, which it has increased in recent years despite the Australian airline making a loss. According to its annual report, Air NZ has invested a total of $422m in Virgin, excluding a recent commitment to lend a further $145m to the airline. Air NZ announced Wednesday it has hired First NZ Capital and Credit Suisse to advise it on options, which includes a possible sale of all or part of its shareholding. Air NZ CE Christopher Luxon has also quit the Virgin board, effective immediately. Air NZ chairman Tony Carter says the airline is reviewing its financial investment in order to find alternate uses for the capital currently deployed in Virgin. <br/>