Singapore Air closely watching developments at Virgin Australia

[SINGAPORE] Singapore Airlines Ltd said it's "closely" monitoring developments at Virgin Australia Holdings Ltd after fellow shareholder Air New Zealand Ltd said it may sell its stake.

Virgin Australia, the country's second-largest carrier, is almost equally owned by Air New Zealand, Etihad Airways PJSC and Singapore Air.

Air New Zealand said in March it was considering exiting the airline, triggering speculation Singapore Air may raise its own stake to prevent an unwelcome foreign airline muscling in.

"We are watching closely what is going on," Singapore Air Chief Executive Officer Goh Choon Phong said at a press conference Friday in Singapore. He said the airline doesn't comment on speculation.

Virgin shares climbed 1.8 per cent to 28 Australian cents at 1:41 pm in Sydney, valuing the airline at A$989 million (S$992 million). Air NZ owns 26 per cent of Virgin, according to data compiled by Bloomberg.

BLOOMBERG