Australian Authorities have cleared the proposal of Abu Dhabi based Etihad Airways to buy stake in Virgin Australia. Etihad Airways expects better revenue and strengthened position with higher stake in Virgin Australia.

Australian Foreign Investment Review Board has given approval to increase the stake up to 10 per cent from the current 4.9 per cent stake.

Etihad Airways had earlier this year acquired 4.9% stake in Virgin Australia in a bid to increase its presence and have been codesharing agreement for both airlines.

Etihad already has links for Abu Dhabi, Sydney, Brisbane and Melbourne. The airline also plans to start flights for Perth – Abu Dhabi route soon. Both the airlines operate 24 flights per week between Abu Dhabi and Australia. Etihad also has line maintenance facility in Australia.